Disco Corporation manufactures and sells precision cutting, grinding, and polishing machines in Japan and internationally. Its precision machines include dicing saws, laser saws, grinders, polishers, wafer mounters, die separators, surface planers, and waterjet saws. The company also offers precision processing tools such as dicing blades, grinding wheels, and dry polishing wheels, along with accessory equipment, cut-off wheels, and related products. In addition, it provides maintenance, disassembly, and recycling services for these machines, training for their maintenance and operation, machine leasing, and buying and selling of used machines. It also manufactures and sells precision diamond abrasive tools and offers chargeable processing services. Founded in 1937, the company is based in Tokyo, Japan.
Disco hits record AI-driven profits, raises dividend, but stock swings on macro fears
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Record shipments and profit surge on AI demand Disco reported record quarterly shipments of 116.5 billion yen for April–June, up 25% year-on-year, driven by generative AI demand. First-quarter operating profit jumped 42% to 49 billion yen, with revenue up 27% to 114.3 billion yen. This strong demand for its chip-making equipment pushes the stock up because it shows the company is selling more and making more money.
This is the core new fundamental driver showing accelerating demand and profitability.
First-half profit forecast points to third straight record Disco projected first-half recurring profit to rise 32% to 104.8 billion yen, a third consecutive record. It also raised its interim dividend by 42 yen to 171 yen. A higher profit outlook and bigger dividend make the stock more attractive to investors, as they signal confidence and return cash to shareholders.
New guidance and dividend increase directly affect investor expectations and income.
Stock plunges on macro fears despite strong earnings On July 24, the Nikkei fell over 3% on Middle East tensions and new US tariffs. Disco, having just reported earnings, dropped over 14% that morning. Even strong company results can be overwhelmed by broad market panic, showing the stock is sensitive to outside economic and political shocks.
This highlights a real counterweight: external risks can temporarily outweigh good fundamentals.
Q1 profit beats expectations, full-year upside seen Disco's Q1 operating profit rose 42% to 49 billion yen, already nearly 47% of its full-year forecast. The stock recovered to 65,830 yen by August 13. Beating expectations and strong progress toward full-year targets suggest the company may raise its outlook, which supports the stock price.
This confirms the earnings beat and potential for upward revisions, a key positive catalyst.
Disco Posts ¥118.5 Billion Quarterly Sales, Earns Zacks Rank #1
Disco Corporation reported preliminary non-consolidated sales of ¥118.5 billion for the quarter ended September 2026, up from ¥85.3 billion a year earlier, with first-half sales of ¥213.6 billion versus ¥160.8 billion in the prior-year period. The semiconductor equipment maker also received a Zacks Rank #1 (Strong Buy) after analysts steadily raised earnings estimates over the past three months. The preliminary figures came in comfortably above the prior year and ahead of earlier non-consolidated guidance, reinforcing the near-term earnings story. The company continues to flag volatile semiconductor and electronic components demand, leaving cyclicality risk embedded in its investment case. Two fair value views in the Simply Wall St Community on Disco span roughly ¥25,000 to ¥81,000.
6146.JP · Capital · Positive Preliminary quarterly sales of ¥118.5B beat prior year and guidance, and analysts raised estimates earning a Zacks Rank #1 Strong Buy
Disco reports 27.1% revenue growth and 42.2% operating profit growth in Q1 FY March 2027, maintains target price of 88,000 yen
Disco's first quarter of the fiscal year ending March 2027 saw revenue of 114.308 billion yen, up 27.1% year on year, and operating profit of 49.033 billion yen, up 42.2%, beating company forecasts. Shipments rose from 121.664 billion yen in the previous quarter to 135.906 billion yen, helped by demand for generative AI and advanced packaging. Rakuten Securities raised its earnings forecast for the fiscal year ending March 2028 and maintained its target price for the next six to twelve months at 88,000 yen.
6146.JP · Capital · Positive Disco reports strong Q1 revenue and operating profit growth, beating forecasts, and Rakuten Securities raised its earnings forecast while maintaining a target price.
Nikkei Average Plunges Sharply in Morning Session, Briefly Falls Over 3% on Middle East and Tariff Concerns
In the Tokyo stock market morning session, the Nikkei average plunged sharply, ending at 64,568.75 yen, down 2.79% from the previous business day. In addition to the previous day's decline in U.S. stocks, uncertainty over the Middle East situation and new tariffs set to be imposed by the Trump administration on the 24th weighed on sentiment, with the index briefly falling 3.14% to 64,334.29 yen. U.S. WTI crude oil futures traded in the 91-dollar range, and amid a global risk-off mood, the TOPIX ended the morning session down 1.01% at 4,012.79 points, while trading value on the Tokyo Stock Exchange Prime Market reached 4.336145 trillion yen. Among major stocks, SoftBank Group fell over 7% and Kioxia Holdings dropped over 9%, while Chugai Pharmaceutical rose over 3%. On the individual front, Disco, which announced earnings the previous day, topped the decliners list with a drop of over 14%, while KOA, which announced upward revisions and a dividend increase, surged over 10% to rank second on the gainers list.
Green Energy & Company Receives Additional Order for Grid Storage Battery System Construction, Disco's First-Half Ordinary Profit Up 32%
Green Energy & Company has received an additional order from Erex for the construction of a grid storage battery system. Disco reported a 32% increase in first-half ordinary profit, achieving record earnings for the third consecutive term, and raised its previously undecided first-half dividend by 42 yen. K&O Energy Group introduced a shareholder benefit program, granting electronic gifts worth 500 to 24,000 yen depending on the number of shares held and the holding period, to shareholders who continuously hold 100 shares or more for at least one year as of the end of December each year. Eole announced a strategic collaboration with Castrol and Woodman for the joint development and market deployment of next-generation liquid cooling and immersion cooling solutions for AI data centers, planning to start sales of an immersion cooling solution equipped with the latest NVIDIA AI inference GPU in August and begin delivery to a data center in September. Meanwhile, Hove has been decided to be delisted effective January 1, 2027, and B-R 31 Ice Cream reported a 9% decline in first-half ordinary profit, with the April-June quarter also down 16%.
Artificial Intelligence › AI Power & Cooling ▲Technology
Energy Transition & Power Demand › Energy Storage & Grid Flexibility ▲Demand
Semiconductors › Deposition, Etch & Process Tools ▲Demand
Energy Transition & Power Demand › Grid, Transmission & Power Equipment Technology
Semiconductors › Advanced Packaging & Test (OSAT) ▲Demand
1436.JP · Demand · Positive Received an additional order from Erex for grid storage battery system construction.
1663.JP · Capital · Positive Introduced a shareholder benefit program granting electronic gifts worth up to 24,000 yen.
2268.JP · Capital · Negative First-half ordinary profit declined 9%, with April-June quarter down 16%.
2334.JP · Technology · Positive Announced strategic collaboration for next-gen liquid cooling and immersion cooling solutions for AI data centers, with sales starting in August.
6146.JP · Capital · Positive First-half ordinary profit up 32%, record earnings for third consecutive term, and raised dividend by 42 yen.
9517.JP · Demand · Positive Erex placed an additional order for grid storage battery system construction with Green Energy & Company, indicating increased demand for Erex's storage solutions.
Disco forecasts 73.8 billion yen net profit for April–September half, up 30%, on solid AI demand
Semiconductor equipment maker Disco announced on the 23rd that it expects consolidated net profit for the April–September half of 2026 to rise 32.0 percent year-on-year to 73.8 billion yen. Sales of semiconductor manufacturing equipment for artificial intelligence are driving performance, with revenue projected to increase 24.8 percent to 242.8 billion yen and operating profit to climb 33.0 percent to 104.9 billion yen. The interim dividend will be 171 yen, up 42 yen from the same period a year earlier. For the April–June quarter of 2026, also reported on the 23rd, net profit rose 44.0 percent year-on-year to 34.2 billion yen, revenue grew 27.1 percent to 114.3 billion yen, and operating profit increased 42.2 percent to 49.0 billion yen.
Disco's previously undisclosed first-half recurring profit rises 32%, marking a third consecutive record high; interim dividend, previously undecided, raised by 42 yen
Disco announced on July 23 that its consolidated recurring profit for the first quarter of the fiscal year ending March 2027 rose 42.5% year-on-year to 48.4 billion yen. The company also released its previously undisclosed first-half earnings forecast, projecting a 31.9% increase in consolidated recurring profit to 104.8 billion yen, which would mark a third straight record high for the first half. Reflecting the strong performance, Disco set its interim dividend for the current fiscal year at 171 yen, up from 129 yen a year earlier, an increase of 42 yen. The year-end dividend remains undecided. The operating profit margin for the first quarter rose to 42.9%, compared with 38.3% in the same period last year.
Semiconductors › Deposition, Etch & Process Tools Demand
6146.JP · Capital · Positive Disco reported a 32% rise in first-half recurring profit forecast, a third consecutive record high, and raised its interim dividend by 42 yen.
New York Market Falls Back, Nasdaq Drops 387 Points
The New York market fell back on the 16th, with the Dow Jones Industrial Average closing down 105.67 dollars at 52,552.97 dollars, and the Nasdaq down 387.28 points at 25,881.95. Concerns over rising crude oil prices due to intensified attacks on Iran and higher interest rates were met with aversion, while Taiwan Semiconductor Manufacturing Company's earnings failed to meet market expectations, putting selling pressure on the sector and keeping the Nasdaq weak throughout the day. By sector, real estate management and development rose, while semiconductors and semiconductor manufacturing equipment fell. The Chicago Nikkei 225 futures settlement price was 66,040 yen, down 1,755 yen from the Osaka daytime session, and in the ADR market, TDK, Shin-Etsu Chemical, and Disco fell, with selling generally dominating.
Disco posts record quarterly shipments for April–June, driven by sustained generative AI demand
Semiconductor equipment maker Disco announced on the 6th that its standalone shipments for the April–June quarter of 2026 reached 116.5 billion yen, up 25.3 percent year on year and 18.7 percent quarter on quarter, marking a record high for any quarter. Shipments of precision processing equipment and precision processing tools grew, led by demand for generative AI. Standalone revenue for the same period was 95 billion yen, achieving 110 percent of its standalone forecast of 86.4 billion yen. The company plans to release its first-quarter results for the fiscal year ending March 2027 on the 23rd.
Japan