Disco Corporation (6146) projects robust Q1 FY2027 on strong AI equipment demand
Disco Corporation Ltd. (6146) has announced its consolidated earnings forecast for the first quarter of fiscal year 2027. The company anticipates consolidated revenue of ¥106.1 billion, operating profit of ¥42 billion, and quarterly net profit attributable to parent company shareholders of ¥29.5 billion, driven by strengthened demand for generative AI-related semiconductor equipment. This forecast, made public on April 24, reflects the intensification of AI-related investment in the semiconductor market. Shares of Disco Corporation are trading today at ¥75,210, down 1.6%.
These projected figures indicate year-on-year growth, with revenue expected to increase by 18.0%, operating profit by 21.8%, and net profit by 24.1%. As a manufacturer of semiconductor production equipment, the company explains that it is benefiting from the expanding demand for semiconductors that support enhanced AI processing capabilities, particularly in data centres and edge devices. This demand is expected to boost sales of the company's precision processing equipment.
The company's share price has been declining from yesterday's close of ¥76,440. However, after this earnings forecast was made public, the stock showed significant gains at the beginning of the week, rising 6.0% on April 27 and an additional 0.5% on April 28. This period's movement was also reported in coverage such as Disco (6146) Announces Solid Q1 Earnings Forecast Amidst Semiconductor Market Fluctuations. Today's decline can be seen as an adjustment following these recent sharp increases.
Disco Stock: An Adjustment Phase After Strong Earnings
Disco Corporation Ltd. is a manufacturer of precision processing equipment essential for semiconductor production. The company is particularly known for its devices that cut and polish silicon wafers, generating revenue by supporting the production of semiconductors that enhance AI processing capabilities for data centres and edge devices. As Disco's technology directly contributes to improving the yield of high-performance semiconductors, it can be said to be indispensable for the growth of the semiconductor industry.
The most important factor in understanding today's movement in Disco stock is the adjustment following its recent sharp rise. On 24 April, the company announced a robust first-quarter earnings forecast for the fiscal year ending March 2027, driven by strengthening demand for generative AI-related semiconductor equipment. Following this, the stock price rose significantly at the beginning of the week, recording a 6.0% gain on 27 April and a 0.5% increase on the following day, 28 April.
Today, Disco stock is trading at ¥75,210, down 1.6% from yesterday's closing price of ¥76,440. This decline can be seen as profit-taking after the release of positive news, or a temporary adjustment aimed at easing overheating.
This is much like a marathon runner resting their body after setting a new personal best, in preparation for the next race. Even immediately after achieving an excellent record, they do not constantly run at full speed; the same logic applies here, where a period of temporarily slowing down to get back into condition is necessary.
Disco Corporation Ltd.
Disco Corporation (6146) is a Japanese technology firm specialising in precision machinery and tools for semiconductor manufacturing. Its product portfolio encompasses dicing saws, laser saws, grinders, polishers, and wafer mounters, alongside a range of processing tools including dicing blades and grinding wheels. Beyond equipment sales, Disco offers comprehensive services such as machine disassembly, recycling, and operational training. The company also engages in leasing and trading of used precision machines, serving clients across Japan and internationally. Established in 1937, Disco Corporation is headquartered in Tokyo.