Company and Industry Summary Company Overview - **Company**: TEL - **Fiscal Quarter**: 3QFY26 - **Revenue**: JPY 552.0 billion, down 15.7% year-over-year, missing expectations by 10% [1] - **Operating Profit**: JPY 116.1 billion, down 41.8% year-over-year, missing expectations by 27% [1] - **Net Profit**: JPY 118.5 billion, down 24.6% year-over-year, missing expectations by 12% [1] - **Main Reason for Performance**: Traditional off-season and pressure on mature process business demand, with some equipment orders not yet converted to revenue [1] Business Segmentation - **Revenue Breakdown**: - SPE New Equipment: JPY 385.1 billion, down 24.6% year-over-year - Field Solutions: JPY 161.6 billion, up 14.2% year-over-year - Revenue Contribution: 70% from SPE New Equipment and 30% from Field Solutions [1] Regional Performance - **China Market**: Revenue share declined in 3Q, expected to stabilize in 2026 - **Mainland China**: Revenue down 31% quarter-over-quarter, accounting for 32% of total revenue - **Taiwan**: Revenue down 6.5% quarter-over-quarter, accounting for 20% of total revenue - **Investment Focus**: 2025 primarily on storage investments, shifting to logic investments in 2026 [2] Forward Guidance - **4QFY26 Revenue Guidance**: Expected to be JPY 154.4 billion, exceeding expectations by 3% [2] - **Full Year FY26 Revenue Guidance**: Revised up by 1.3% to JPY 2,410 billion, year-over-year flat, meeting expectations [2] - **Operating Profit Guidance**: Revised up by 1.2% to JPY 593 billion, down 15.0% year-over-year, missing expectations by 4% [2] - **Net Profit Guidance**: Revised up by 12.7% to JPY 550.0 billion, up 1.1% year-over-year, exceeding expectations by 10% [2] Market Outlook - **WFE Market Growth**: Expected to grow by over 15% in CY2026 [3] - **Capital Expenditure Guidance**: R&D and Capex expected to be JPY 290.0 billion and JPY 240.0 billion respectively, with increases of 16.0% and 48.2% year-over-year [3] - **Product Sales Expectations**: Prober business expected to exceed JPY 100 billion in FY27; Bonder and laser-related tools expected cumulative sales over JPY 500 billion in the next five years [3]