Wafer cutting machine factory DISCO s financial forecast is poor, net profit may drop sharply, stock price plummets

DISCO, a major Japanese wafer cutting machine manufacturer, is bearish on its performance for this quarter (October-December), and its net profit may drop by 20%, which is worse than market expectations. The stock price plummeted after hearing the news today.

According to the quotation from Yahoo Finance, as of the morning closing of the Japanese stock market on the 30th (10:30 a.m. Taipei time), DISCO plummeted 5.89%, temporarily closing at 53,070 yen.

DISCO The last quarter (July-September 2025) financial report was announced after the market closed on the 29th: As demand related to generative AI continues to be strong, it has driven steady shipments of precision processing equipment such as cutting machines (Dicer) and grinding machines (Grinder) used in semiconductor mass production. , consolidated revenue increased 8.7% from the same period last year to 104.622 billion yen, quarterly revenue hit the second highest record in history, consolidated operating profit increased 4.3% to 44.391 billion yen, and consolidated net income increased 8.1% to 32.145 billion yen.

(Source: DISCO)

DISCO pointed out that shipments in the last quarter, which can be used to reflect customers' investment willingness, decreased by 1% from the same period last year to 96.4 billion yen. Although it fell into contraction, it was far better than DISCO's original self-estimate of 83.6 billion yen.

DISCO pointed out that due to the expected appreciation of the Japanese yen exchange rate (relative to the US dollar) and the difficulty in predicting the timing of customer acceptance, the consolidated revenue estimate for this quarter (October-December 2025) will decrease by 1% from the same period last year to 92.6 billion yen, the consolidated revenue estimate will decrease by 16% to 32.8 billion yen, and the consolidated net profit estimate will decrease by 23% to 24.4 billion yen.

DISCO estimates that shipments this quarter will decrease by 8% year-on-year to 101.6 billion yen. Although it will shrink, quarterly shipments will hit the third highest record in history (lower than 110.3 billion yen in October-December 2024 and 111.1 billion yen in April-June 2025).

DISCO's above-mentioned financial forecast for this quarter is a trial value based on the assumption that 1 U.S. dollar is worth 145 yen and 1 euro is worth 172 yen.

According to Japanese media reports, the average market estimate is that DISCO’s net profit for this quarter will be 27.8 billion yen, and the value released by DISCO is lower than market expectations.

Further reading: Wafer cutting machine factory DISCO's financial forecast is poor, profit may drop sharply, stock price plummets