Keyence lifts second-quarter sales 36.8% to ¥388.8 billion and approves stock split
Key Facts
Keyence reported a 36.8% year-on-year increase in sales to ¥388.8 billion in the second quarter of fiscal 2026, while operating income rose 54.8% to ¥221.2 billion. Sales topped an estimate of about ¥366.3 billion, according to an estimate cited by Reuters via Investing.com. Quarter on quarter, sales increased 12%, while the company estimated organic sales growth at about 28% year on year, compared with 23% in the first quarter. The results point to accelerating activity during the quarter, with sales expanding in Asia and operating margins improving. The company also announced a higher interim dividend and a stock split, steps affecting both cash returns and access to its shares for investors.
For the six months ended September 20, 2026, sales totaled ¥735.399 billion, up 34.9% from the year-earlier period, while operating income rose 50% to ¥408.262 billion. Net income attributable to owners of the parent increased 49.4% to ¥298.675 billion, compared with ¥199.959 billion a year earlier. The figures show concurrent growth in revenue, operating income and net income in the first half. In the previous year-on-year comparison, fiscal 2025 sales rose 10.4% to ¥1.1693 trillion, and operating income increased 8.4% to ¥595.8 billion. The current first-half results therefore put growth at a faster pace than the increase recorded in the previous fiscal year.
Asia was the fastest-growing region in the first half, with sales rising 56% in yen terms and 39.5% on a local-currency basis. In the second quarter alone, regional growth was 61.4% in yen terms and 45.2% in local currency, according to the company's results materials. Within Asia, sales of semiconductors and liquid crystal displays rose 65% on a local-currency basis in the first half. Electronics and precision sales in the region also increased 40% on the same basis. These figures provide a sector-level breakdown of regional growth, while the company did not attribute the increase to a single direct cause in its results materials.
Profit margins improved alongside rising sales. The operating margin was 56.9% in the second quarter, compared with 50.3% in the same period a year earlier. The gross profit margin also rose to 86.2% from 82.8%. The company said exchange-rate changes added, by its estimate, about ¥51.9 billion to sales and ¥38.4 billion to operating income in the first half. The average dollar rate rose to ¥160 in the first half from ¥146 in the year-earlier period, and Keyence estimated operating-income sensitivity at about ¥1.3 billion for each ¥1 change in the dollar exchange rate.
For dividends, Keyence decided to pay ¥325 a share for the interim period, compared with ¥275 in the year-earlier period, and raised its full-year dividend forecast to ¥650 a share on a pre-split basis. It said the interim dividend was increased by ¥50 a share from its forecast published on July 28, 2026. The company linked the decision to its performance, financial position and policy of continuing stable dividends. Payment of the interim dividend is scheduled to begin on November 26, 2026. The adjustment distinguishes the cash dividend per share on a pre-split basis from the change in the number of shares resulting from the split.
The company approved a five-for-one stock split, with November 20, 2026 set as the record date and November 21 as the effective date. It said lowering the investment required per unit aims to improve share liquidity and broaden the investor base. Separately, Keyence announced on October 23 that France's TraceParts would join its group. TraceParts describes its business as a platform for computer-aided design content for industrial components and equipment and machine design, with a community of more than 6.5 million registered users. TraceParts said the move aims to accelerate the development of its solutions and strengthen support for component manufacturers, distributors and the industrial community. EL7 data recorded the KYCCF share closing at 471.02 on November 3, without specifying the currency unit in the data record. Keyence set November 2 as the scheduled filing date for its half-year report and November 26 as the date for dividend payments to begin.