SCREEN Holdings (7735) expects Q1 operating profit to surge by 27.9%
SCREEN Holdings (7735) shares are trading up 8.8% at ¥11,300, driven by market anticipation of robust first-quarter 2026 operating profit. The semiconductor equipment manufacturer's operating profit for the first quarter of 2026 increased by 27.9% year-on-year to ¥166.8 billion, according to earnings released on May 10, 2026.
Rakuten Securities, in its "2026 Tech Stock Investment" PDF, forecasts the company's revenue to reach ¥393.3 billion. Internal company investor relations materials attribute this performance to sustained 5G-related investment within the semiconductor sector and a recovery in automotive production. Fixed cost reductions also contributed to the profit expansion.
This movement represents a significant increase from yesterday's close of ¥10,390. The market's heightened expectations for semiconductor manufacturing equipment stocks are channelling buying interest into SCREEN Holdings, supported by its strong earnings outlook.
Why an earnings outlook exceeding market expectations is boosting SCREEN Holdings
SCREEN Holdings is a company primarily focused on semiconductor manufacturing equipment. It produces cleaning and inspection devices used in the production processes of semiconductors, which are essential for smartphones and data centres. Its main customers are semiconductor manufacturers worldwide. As information and communication technology evolves and automotive electrification progresses, the company generates revenue by providing foundational technologies that support the growth of the semiconductor industry.
The significant rise in the company's share price today is due to a strong earnings outlook that the market had anticipated. Specifically, observations spread that operating profit for the first quarter of 2026, scheduled to be announced on 10 May 2026, would reach ¥166.8 billion, representing a 27.9% increase year-on-year. This positive development is attributed to continued 5G-related investment and a recovery in automotive production, which have increased semiconductor demand, alongside the positive effect of fixed cost reductions.
With this positive information reaching the market in advance, SCREEN Holdings' share price rose by 8.8% from yesterday's close of ¥10,390, and is currently trading at ¥11,300. Investors are pricing in the strong performance without waiting for the official announcement, actively buying shares.
This situation is much like a popular restaurant experiencing a flood of reservation requests. Even though the menu has not yet been officially announced, rumours spread among regular customers and industry insiders that "the next new dish will be exceptionally superb," leading to long queues forming even before reservations open. The market, without waiting for the formal announcement, is pushing up the stock price based on the anticipation of this "superb new dish."
SCREEN Holdings
SCREEN Holdings Co., Ltd. (7735) is a Japanese technology firm specialising in semiconductor manufacturing equipment. Its extensive product portfolio includes coat/develop trackers, wafer cleaning systems, annealing systems, and advanced packaging lithography equipment. Beyond semiconductors, SCREEN Holdings offers a diverse range of solutions, from direct imaging and automatic optical inspection systems to high-speed inkjet and digital printing technologies for various applications including offset printing and digital books. The company also develops artificial intelligence, text mining, and augmented reality solutions, alongside biosciences equipment and components for in-vehicle inspection. Additionally, it provides contract manufacturing and intellectual property services, and produces lithium-ion rechargeable batteries. Formerly known as Dainippon Screen Mfg. Co., Ltd., the company was established in 1943 and is headquartered in Kyoto, Japan.