Fiscal Year End: March 31 (Anritsu calls the year ending March 2026 "FY2025") Most Recent Results: H1 FY2025 (6 months ended September 30, 2025), reported October 30, 2025 Q3 Q&A: January 2026 Next Full-Year Results: April 23, 2026

Download Manifest

File	Type	Period	Size	Path
6754-H1-FY2026-presentation.pdf	H1 Tanshin (English)	Apr-Sep 2025	350K	interim/
6754-Q3-FY2026-presentation.pdf	Q3 Q&A Summary	Oct-Dec 2025	102K	interim/

Source: Anritsu IR (anritsu.com/en-us/about-anritsu/investor-relations), TDnet. All amounts in ¥M unless noted.

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Section A: Filing Monitor (Last 90 Days)

1. Filing Activity Overview

Date Filed	Filing Type	Description	Source
Late Jan 2026	Q3 Earnings Q&A	Q3 FY2025 results Q&A summary (1 page)	Anritsu IR / TDnet
Oct 30, 2025	H1 Tanshin + Supplement	Consolidated Financial Results for 6 months ended Sep 30, 2025 (20 pages, English)	Anritsu CDN

Filing activity: Normal. Standard earnings releases, no unusual disclosures.

2. H1 Results Summary (6 Months Ended September 30, 2025)

Metric (¥M)	H1 FY2024	H1 FY2025	YoY Change
Orders	53,479	55,030	+2.9%
Backlog	—	37,556	+10.3%
Revenue	53,309	51,693	(3.0)%
Gross Profit	25,149	25,678	+2.1%
Gross Margin	47.2%	49.7%	+2.5pts
Operating Profit	3,576	5,032	+40.7%
Operating Margin	6.7%	9.7%	+3.0pts
PBT	3,381	5,356	+58.4%
Net Income	2,237	3,809	+70.2%
EPS (¥)	16.98	29.74	+75.1%

Revenue down 3% but profits up 40-70%. Anritsu is a profit recovery story — gross margin expanded 2.5 points to nearly 50% as FY2024's elevated costs (inventory revaluation losses, one-time expenses) normalized. Operating leverage did the rest, turning a modest revenue decline into a massive earnings beat.

Orders grew +2.9% with backlog at ¥37.6B (+10.3%), which is the forward indicator that matters. Customer investment is resuming after the US tariff-driven pause.

Segment Detail (H1)

Test and Measurement (T&M) — 60% of Revenue

Metric (¥M)	H1 FY2024	H1 FY2025	YoY
Revenue	33,985	30,933	(9.0)%
Operating Profit	2,541	3,947	+55.3%
Operating Margin	7.5%	12.8%	+5.3pts

Revenue down 9% but operating profit up 55%. The revenue decline was driven by US tariff policy causing customers to defer investment — recovery started but couldn't fully compensate for the Q1 shortfall. The margin improvement came from cost control and inventory reduction (FY2024 had one-time inventory revaluation losses).

T&M is Anritsu's core — measuring instruments for 5G/6G networks, optical communications (800GE/1.6TE transceivers), and mobile devices. The Q3 Q&A confirms demand for data center-related products is "strong and expected to continue into Q4 and beyond." Q3 T&M revenue was ¥17.2B with order backlog at ¥25.0B.

Key market context from Q3 Q&A:

• 800GE products remain mainstream, 1.6TE demand "beginning to emerge"
• Physical AI advancement → increasing data center demand
• No significant memory shortage impact on Mobile business yet

Products Quality Assurance (PQA) — 28% of Revenue

Metric (¥M)	H1 FY2024	H1 FY2025	YoY
Revenue	12,993	14,538	+11.9%
Operating Profit	1,059	1,454	+37.2%
Operating Margin	8.2%	10.0%	+1.8pts

The growth engine right now. Food industry automation demand is strong — labor shortages at Japanese food manufacturers are driving capital investment in quality inspection equipment (checkweighers, X-ray contamination detection, automated combination weighers). Demand for auto checkweighers also benefited from Japan's metrology system revision.

Environmental Measurement — 6% of Revenue

Metric (¥M)	H1 FY2024	H1 FY2025	YoY
Revenue	3,528	2,936	(16.8)%
Operating Profit (Loss)	63	(97)	—

Swung to a loss. EV/battery testing demand in Japan was deferred due to US tariff policies. Local 5G support services also soft. Small segment but worth monitoring — if EV testing demand rebounds, this flips back to profit quickly.

Others — 6% of Revenue

Metric (¥M)	H1 FY2024	H1 FY2025	YoY
Revenue	2,801	3,284	+17.2%
Operating Profit	628	740	+17.7%

Sensing & Devices, Logistics, Welfare services. Steady contributor.

3. Geographic Breakdown (H1)

Region	H1 FY2024	H1 FY2025	YoY	% of Total
Japan	15,790	16,750	+6.1%	32.4%
Americas	13,393	12,624	(5.7)%	24.4%
EMEA	7,461	7,730	+3.6%	15.0%
Asia & Others	16,663	14,586	(12.5)%	28.2%
Total	53,309	51,693	(3.0)%	100%

Americas weakness (-5.7%) from tariff-driven deferrals. Asia & Others down -12.5% — likely timing effects from prior-year front-loading. Japan grew +6.1%, which is the most important signal for the PQA business.

4. Balance Sheet (September 30, 2025, ¥M)

Item	March 2025	Sep 2025	Change
Cash & equivalents	50,094	54,564	+4,470
Trade receivables	28,535	24,397	(4,138)
Inventories	22,425	24,085	+1,660
Total assets	159,826	159,958	+131
Interest-bearing debt	6,072	6,107	+35
Total equity	124,268	124,859	+591
Equity ratio	77.8%	78.1%	+0.3pts
D/E ratio	0.05x	0.05x	flat

Fortress balance sheet. ¥54.6B cash vs ¥6.1B debt. Equity ratio 78%. This is a company that could do significant M&A or buybacks if it chose to — the balance sheet is massively under-levered. Treasury shares increased from ¥9.9B to ¥11.1B (¥1.3B buyback in H1).

5. Cash Flow (H1, ¥M)

Item	H1 FY2024	H1 FY2025	Change
Operating CF	10,767	8,481	(2,286)
Investing CF	(1,516)	(1,352)	+163
FCF	9,251	7,128	(2,122)
Financing CF	(3,677)	(3,106)	+571
Cash at end	50,338	54,564	+4,225

FCF of ¥7.1B in H1 is healthy. Operating CF declined mainly from higher income taxes paid (¥3.0B vs ¥1.4B). Financing outflows include dividends (¥2.6B) and treasury share purchases (¥1.3B). Minimal capex needs — this is an asset-light business.

6. Full Year Guidance (FY ending March 31, 2026)

Guidance unchanged from initial April 2025 forecast. FX assumption: 1 USD = ¥145.

Metric (¥M)	FY2024 Actual	FY2025 Guide	YoY Change
Revenue	112,979	123,000	+8.9%
Operating Profit	12,124	15,000	+23.7%
PBT	12,124	15,000	+17.8%
Net Income	9,260	11,000	+18.8%
EPS (¥)	70.42	85.87	+21.9%
DPS (¥)	40.00	40.00	flat

Segment Guidance

Segment	FY2024 Rev	FY2025E Rev	Growth	FY2025E OP	OP Growth
T&M	70,109	77,000	+9.8%	12,000	+43.3%
PQA	28,241	30,000	+6.2%	3,000	+5.8%
Environmental	8,545	10,000	+17.0%	900	flat
Others	6,081	6,000	(1.3)%	1,000	(31.4)%
Consolidated	112,979	123,000	+8.9%	15,000	+23.7%

Regional Guidance

Region	FY2024	FY2025E	Growth
Japan	36,378	41,000	+12.7%
Americas	28,129	30,000	+6.7%
EMEA	15,449	17,000	+10.0%
Asia & Others	33,022	35,000	+6.0%

Progress Check: 9-Month Revenue vs. Full Year Guide

9-month revenue (H1 + Q3): ¥51,693 + ¥29,377 = ~¥81,070M Remaining Q4 needed: ¥41,930M to hit ¥123,000 guide Prior year Q4: ¥32,138M Q4 needs +30.5% YoY growth — ambitious but backlog of ¥37.6B (and growing) supports it. Q3 Q&A confirmed strong data center demand continuing into Q4. Anritsu is Q4-heavy historically (Q4 is always the largest quarter).

9. Red Flag Alerts

Red Flag	Detected?	Details
Auditor change	No	—
Going concern	No	Explicitly stated "None" in notes
Material weakness	No	—
New risk factors	Monitor	US tariff policies repeatedly cited as deferring customer investment
Insider selling	No	Treasury share purchases indicate buyback, not selling
Executive departure	No	—
Guidance cut	No	Guidance maintained unchanged
Environmental segment loss	Monitor	¥97M operating loss in H1 — small but new

No red flags. The cleanest balance sheet on your watchlist — 78% equity ratio, 0.05x D/E, ¥54.6B cash.

10. Key Takeaways (Filings)

1. Profit recovery is real. Revenue down 3% but operating profit up 41%, driven by gross margin normalization (FY2024 had inventory revaluation losses and elevated costs). This is a quality-of-earnings improvement, not financial engineering.

2. T&M is recovering. Orders +2.9%, backlog +10.3%. US tariff-driven investment deferrals are unwinding. Data center demand (800GE → 1.6TE) is the secular growth driver. Q3 Q&A specifically calls out "strong demand for data center-related products continuing into Q4 and beyond."

3. PQA is the quiet growth engine. +12% revenue, +37% operating profit. Food industry automation in Japan is a structural tailwind (labor shortages driving capex in quality inspection). This segment doesn't get the attention of T&M but it's delivering consistent profitable growth.

4. Balance sheet is massively under-levered. ¥54.6B cash, 0.05x D/E. This balance sheet is begging for capital deployment — either M&A or more aggressive buybacks. The ¥1.3B buyback in H1 barely scratches the surface.

5. Q4 needs to deliver. Full year guide requires ¥42B Q4 revenue (+31% YoY). That's aggressive, but Anritsu is always Q4-heavy and the ¥37.6B backlog provides a solid floor. The Q3 Q&A tone was confident.

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Section B: Earnings Review

1. Earnings Snapshot

Item	Value
Company	Anritsu Corporation
Ticker	6754 (TSE Prime Market)
Most recent report	Q3 FY2025 (Oct-Dec 2025) / H1 FY2025 (Apr-Sep 2025)
H1 report date	October 30, 2025
Q3 Q&A date	Late January 2026
Fiscal year end	March 31
Next earnings	April 23, 2026 (Full Year FY2025)

Quarterly Performance Trend

Metric	Q1 FY24	Q2 FY24	Q3 FY24	Q4 FY24	Q1 FY25	Q2 FY25	Q3 FY25
Revenue (¥M)	25,229	28,079	27,531	32,138	23,620	28,073	29,377
Gross Profit	11,649	13,499	13,389	16,436	11,745	13,932	—
Operating Profit	622	2,953	2,842	5,704	1,339	3,693	—
OP Margin	2.5%	10.5%	10.3%	17.7%	5.7%	13.2%	—
EPS (¥)	5.43	11.55	20.23	33.30	4.55	25.21	19.63

Key observations:

• Sequential improvement: Revenue has trended up Q1→Q2→Q3 in FY2025, and Q3 at ¥29.4B exceeded prior-year Q3 (¥27.5B) by +6.7%
• Massive Q4 seasonality: Q4 is always the biggest quarter (¥32.1B last year). FY2025 guide implies ~¥42B, which would be a record Q4
• Q2 FY2025 was the best non-Q4 quarter — ¥3.7B operating profit at 13.2% margin, beating all prior-year non-Q4 quarters
• Q3 EPS of ¥19.63 was lower than Q2 (¥25.21) — the Q3 Q&A attributes this to "timing of orders," not a demand issue

TTM Metrics (from web data)

Metric	Value
TTM Revenue	¥113,209M
TTM Net Income	¥10,676M
TTM Net Margin	9.4% (vs 7.7% prior year)
TTM EPS	¥82.97 (vs ¥70.42)
P/E	25.7x
DCF Fair Value (SWS)	¥2,937
Share Price	~¥2,143

2. Segment Revenue by Quarter (Prior Year Detail)

T&M Revenue Quarterly

Quarter	FY2024	FY2025	YoY
Q1	16,832	—	—
Q2	17,152	—	—
Q3	16,906	17,200*	+1.7%
Q4	19,217	—	—
Full Year	70,109	77,000E	+9.8%

*Q3 T&M revenue from Q3 Q&A (¥17.2B).

T&M Operating Profit Quarterly

Quarter	FY2024
Q1	604
Q2	1,936
Q3	1,893
Q4	3,939
Full Year	8,375 → 12,000E (+43%)

Orders & Backlog Quarterly

Quarter	FY2024 Orders	FY2024 Backlog
Q1	25,986	36,771
Q2	27,492	34,057
Q3	28,408	36,590
Q4	30,697	33,691

H1 FY2025 orders: ¥55,030 (+2.9%). Backlog at Sep 30: ¥37,556 (+10.3%). Both trending in the right direction — orders are leading revenue, and the growing backlog provides Q4 visibility.

3. Margin Analysis

Metric	H1 FY2024	H1 FY2025	Change	Full Year Guide
Gross Margin	47.2%	49.7%	+2.5pts	—
Operating Margin	6.7%	9.7%	+3.0pts	12.2%
Net Margin	4.2%	7.4%	+3.2pts	8.9%

The margin story is the bull case. Gross margin at nearly 50% is excellent for a T&M company. The improvement is structural — FY2024's elevated costs (inventory write-downs, one-time items) have normalized, and Anritsu has implemented cost controls. The full-year guide implies H2 operating margin of ~14%, which is very achievable given Q4 operating leverage (revenue surges while fixed costs stay flat).

5. Cash Flow & Balance Sheet

Metric (¥M)	FY2024 (FY)	H1 FY2025
Operating CF	18,685*	8,481
FCF	~16,000*	7,128
Cash	50,094	54,564
Interest-bearing debt	6,072	6,107
Net cash	44,022	48,457
Equity	124,268	124,859
Equity ratio	77.8%	78.1%
D/E	0.05x	0.05x

*FY2024 full-year estimated from quarterly data.

The balance sheet is a fortress and the FCF generation is strong for a ¥113B revenue company. Net cash of ¥48.5B is nearly 40% of equity. The question isn't whether Anritsu can sustain operations — it's whether management will put this cash to work productively.

7. Management Commentary (Q3 Q&A Highlights)

Tone: Cautiously Confident. Management's language has become more positive than the guarded tone of H1.

Key quotes from Q3 Q&A:

• T&M outlook: "Investment by customers has resumed, and the performance of our T&M business in Q3 was broadly consistent with expectations. We anticipate that strong demand, particularly for data center-related products, will continue into Q4 and beyond."
• 800GE/1.6TE: "Demand for instruments supporting 1.6TE is beginning to emerge. However, 800GE-related products remain the mainstream at this stage."
• Physical AI: "As physical AI continues to advance, demand for data centers is expected to increase."
• Gross margin: "The primary factor was that FY2025 returned to normal operating levels, while expenses were incurred in FY2024 that were higher than usual, including loss on revaluation of inventories."

8. KPIs

KPI	FY2024 Q4	FY2025 Q1	FY2025 Q2	FY2025 Q3	Trend
Orders (¥M)	30,697	—	—	—	Growing (H1 +2.9%)
Backlog (¥M)	33,691	—	37,556 (H1)	—	Growing +10.3%
T&M backlog	19,683	—	—	25,000 (Q3 Q&A)	Growing significantly
Gross margin	—	49.7% (H1)	—	—	Expanding
Treasury shares	(6,012)	(11,212) Q1	(11,139) Q2	—	Active buyback

T&M backlog at ¥25B in Q3 is the single most important forward indicator. That's up significantly from ¥19.7B at end of FY2024.

10. Earnings Scorecard

Category	Grade	Notes
Revenue growth	C+	Down 3% H1 but Q3 showed +6.7% YoY improvement
Profitability	A	Operating profit +41%, margin +3pts. Clean quality improvement
T&M segment	B+	Revenue soft but margins excellent, backlog strong, data center demand real
PQA segment	A-	+12% revenue, +37% profit, structural food automation tailwind
Environmental	D	Operating loss, EV/battery demand deferred. Small but disappointing
Balance sheet	A+	78% equity ratio, 0.05x D/E, ¥48.5B net cash
Cash flow	A-	¥7.1B FCF in H1, minimal capex needs, asset-light
Guidance	B+	Unchanged, requires strong Q4 but backlog supports it
Shareholder returns	B-	Dividends maintained, modest buyback. Under-utilizing the balance sheet
Overall Grade	B+	Profit recovery on track, data center tailwind emerging, fortress balance sheet

11. Investment Implications

Does this change the thesis? Reinforces it. Anritsu is recovering from the FY2024 tariff-driven trough. Profitability is rebounding faster than revenue (margin normalization + cost control), and the data center/AI infrastructure investment cycle is providing a secular demand tailwind for T&M instruments. The ¥25B T&M backlog is the strongest in recent quarters.

Single most important takeaway: The Q4 revenue number is everything. Guide needs ¥42B — a record quarter. If they deliver, it validates the recovery and sets up FY2026 for acceleration. If they miss, the stock gives back its recent gains. The backlog and management tone suggest delivery is likely.

What to watch for the full-year results (April 23, 2026):

1. Q4 revenue: did they hit ¥42B? (backlog of ¥37.6B+ provides floor)
2. FY2026 guidance: consensus expects ¥120B revenue — does management guide higher?
3. 800GE → 1.6TE transition: any product launch updates or customer wins?
4. Capital allocation: will they announce a bigger buyback or dividend increase? The balance sheet demands it
5. Environmental segment: did EV/battery testing recover in Q4?

Action: HOLD. At 25.7x trailing earnings and ¥2,143 vs DCF fair value of ¥2,937, there's 37% upside to fair value. The profit recovery is confirmed, the data center tailwind is real, and the balance sheet provides a safety net. Full-year results in April should be the catalyst. The biggest risk is that the under-leveraged balance sheet signals management complacency on capital allocation.

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Sources: Anritsu IR, H1 Tanshin, Simply Wall St, StockAnalysis

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Topics

• ai-infrastructure
• optical-components
• japan-semi
• supply-chain-security