UK's Renishaw slightly beats FY revenue estimates on strong demand for semiconductor tools

Overview

• UK measurement systems maker's FY2026 revenue grew 14%, slightly beating analyst expectations

• Adjusted EPS and adjusted pretax profit for FY2026 beat analyst expectations

• Company announced special dividend of 70p per share in addition to proposed final dividend

Outlook

• Company expects further strong progress on revenue, profit and operating margin in FY2027

• Renishaw says FY2027 has started strongly with continued demand for semiconductor manufacturing equipment

• Company plans to expand encoder production capacity to meet customer demand

Result Drivers

• SEMICONDUCTOR DEMAND - Co said AI-driven upturn in semiconductor manufacturing equipment demand boosted revenue, especially in Position Measurement segment

• EMERGING PRODUCT LINES - Co said strong growth in emerging product lines, notably additive manufacturing systems and metrology systems/software, drove segmental revenue gains

• OPERATIONAL LEVERAGE - Co said margin improvement was driven by fixed cost reduction and operational leverage, offset by currency headwinds

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the industrial machinery & equipment peer group is "buy."

• Wall Street's median 12-month price target for Renishaw PLC is GBp5,460.00, about 1.4% below its September 22 closing price of GBp5,535.00

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)