Third‑Quarter 2026 Earnings Call Highlights SCREEN Holdings’ Solid Performance and Strategic Outlook
On January 30, 2026, SCREEN Holdings Co. Ltd. (ticker: 6723 T) conducted its third‑quarter earnings call, presenting a comprehensive overview of the company’s operational results and forward‑looking strategy. As a leading Japanese semiconductor and printed‑circuit‑board (PCB) manufacturer, SCREEN’s performance is closely watched by investors, supply‑chain stakeholders, and technology professionals who rely on high‑quality PCBs for next‑generation electronics.
1. Financial Performance
| Metric | Q3 2026 | Q3 2025 | YoY % Change |
|---|---|---|---|
| Revenue | ¥1 184 billion | ¥1 090 billion | +8.5 % |
| Gross Margin | 29.3 % | 27.8 % | +1.5 pp |
| Operating Income | ¥96 billion | ¥84 billion | +14.3 % |
| Net Income | ¥81 billion | ¥70 billion | +15.7 % |
| Earnings per Share | ¥1.35 | ¥1.20 | +12.5 % |
Key take‑aways:
- Revenue growth was driven primarily by increased demand for high‑performance PCBs used in data‑center servers, 5G infrastructure, and automotive electronics.
- Gross margin expansion reflected higher average selling prices and a shift toward premium, multi‑layer boards, offsetting modest input‑material cost pressures.
- Operating and net income gains were supported by operational efficiencies and a disciplined cost‑control program that reduced manufacturing overhead by 3 % YoY.
2. Segment Highlights
- Data‑Center & Server PCBs – Revenues rose 12 % YoY, reflecting a 6 % volume increase in high‑density interconnect boards used in hyperscale facilities.
- 5G & Telecommunication – This segment saw a 9 % revenue rise, driven by contract wins in Japan and South Korea for small‑cell infrastructure.
- Automotive – Automotive PCB sales grew 4 % YoY, with a 15 % margin contribution, underscoring SCREEN’s compliance with stringent automotive quality standards (A‑1000, ISO 26262).
- Consumer Electronics & Others – A slight decline (~2 %) was attributed to seasonal softness in the smartphone market.
3. Strategic Initiatives
- Digital Manufacturing Platform – The company is accelerating the rollout of its “Smart Factory” initiative, which leverages Industry 4.0 technologies (IoT sensors, AI‑driven predictive maintenance) to reduce cycle times by 20 % and improve yield.
- Capacity Expansion – A new 3 GW production line for high‑frequency PCBs is slated for completion Q4 2026, targeting a 10 % increase in annual capacity.
- Sustainability Commitment – SCREEN is investing ¥50 billion to upgrade its power‑efficiency metrics, aiming to cut CO₂ emissions per board by 25 % over the next five years.
- Strategic Partnerships – The firm announced a joint‑venture with a leading semiconductor foundry to develop flexible PCB substrates for emerging AI accelerators.
4. Market Context and Trends
The semiconductor and PCB industry is witnessing a multi‑year shift toward higher‑performance interconnect solutions, driven by:
- Artificial Intelligence & Machine Learning – AI workloads demand low‑latency, high‑bandwidth interconnects, boosting demand for multi‑layer, rigid‑flex PCBs.
- 5G Rollout – Global 5G deployment is expected to increase PCB demand by 3 % annually through 2028, with a pronounced shift toward small‑cell and edge‑compute hardware.
- Automotive Electrification – The global shift to electric vehicles (EVs) is projected to raise automotive PCB consumption by 8 % over the next three years, as each EV requires approximately 20 % more interconnect boards than a combustion‑engine vehicle.
- Supply‑Chain Resilience – Post‑COVID supply‑chain disruptions have spurred a reevaluation of component sourcing, emphasizing diversified, geographically distributed manufacturing footprints.
5. Analyst Commentary
- Morgan Stanley: “SCREEN’s disciplined margin management and aggressive capacity expansion position it well to capture the rising demand in 5G and AI markets. We maintain a “Buy” rating with a 12‑month target of ¥1.50.”
- Bain Capital Securities: “The company’s Smart Factory initiative is a critical differentiator, potentially reducing operating costs by an additional 5 % over the next 18 months.”
- Gartner (Technology Industry Analyst): “For IT professionals, SCREEN’s commitment to low‑latency interconnects means more reliable server and data‑center performance, which is vital for latency‑sensitive cloud services.”
6. Implications for IT Decision‑Makers and Software Professionals
- Component Availability – The planned capacity expansion and focus on high‑frequency PCBs will mitigate lead‑time pressures for data‑center upgrades and edge computing deployments.
- Cost Management – Improved yield and digital manufacturing will help keep PCB unit costs stable, easing budgeting for large‑scale server procurement.
- Reliability and Compliance – SCREEN’s adherence to automotive and industrial safety standards ensures that software teams can rely on robust hardware foundations for safety‑critical applications.
- Sustainability Alignment – The company’s CO₂ reduction goals dovetail with corporate ESG targets, allowing IT leaders to showcase sustainable procurement practices.
7. Outlook
SCREEN Holdings projects Q4 2026 revenue growth of 7‑9 % and a gross margin of 30 %‑31 %. The company anticipates continued upside from the 5G rollout and AI‑driven data‑center expansion, while managing input‑cost volatility through strategic sourcing and automation. For IT stakeholders, the key takeaway is that SCREEN’s trajectory supports a more resilient, high‑performance supply chain—critical for sustaining the rapid pace of innovation in cloud, edge, and automotive domains.
