Renesas Electronics Corporation
6723・Prime Market・Electric Appliances
Automotive Business
Renesas' core segment providing semiconductors for automotive control and automotive infotainment applications
| Period | Current | Previous | Change |
|---|---|---|---|
| Non-GAAP Revenue (Q1 FY2026, ending December 2026) | Equivalent to ¥171,700 million (¥171.7 billion) | Equivalent to ¥155,300 million (¥155.3 billion) | ↑ |
| Non-GAAP Gross Margin (Q1 FY2026, ending December 2026) | 56.2% | 52.2% | ↑ |
| Non-GAAP Operating Income (Q1 FY2026, ending December 2026) | Equivalent to ¥61,800 million (¥61.8 billion) | Equivalent to ¥46,200 million (¥46.2 billion) | ↑ |
| Non-GAAP Operating Margin (Q1 FY2026, ending December 2026) | 36.0% | 29.7% | ↑ |
| Segment Revenue (IFRS, Q1 FY2026, ending December 2026) | ¥171,749 million | ¥155,297 million | ↑ |
| Segment Gross Profit (IFRS, Q1 FY2026, ending December 2026) | ¥96,507 million | ¥81,090 million | ↑ |
| Segment Operating Income (IFRS, Q1 FY2026, ending December 2026) | ¥61,754 million | ¥46,155 million | ↑ |
| Depreciation and Amortization (Q1 FY2026, ending December 2026) | ¥11,519 million | ¥11,212 million | ↑ |
Business Details
This segment consists of "Automotive Control," which provides semiconductors for automobile engine and body control, and "Automotive Information," which provides semiconductors for in-vehicle information equipment such as sensing systems, IVI, and instrument panels. The segment mainly offers Microcontroller (MCU), SoC (System-on-Chip), Analog Semiconductors, and Power Semiconductors. In Q1 of FY2026 (ending December 2026), Non-GAAP revenue was equivalent to ¥171,700 million (¥171.7 billion). Driven by increased demand, revenue grew 10.6% year-on-year.
Recent Overview
Revenue grew 10.6% year-on-year on rising demand; operating margin improved substantially to 36.0%
In Q1 of FY2026 (ending December 2026), Non-GAAP revenue for the Automotive Business was ¥171.7 billion (up ¥16.5 billion, or +10.6%, year-on-year). Higher utilization rates improved the gross margin by 4.0 points from 52.2% to 56.2%, and Non-GAAP operating income reached ¥61.8 billion (up ¥15.6 billion, or +33.8%, year-on-year), with the Non-GAAP operating margin reaching 36.0% (up 6.2 points). On an IFRS operating income basis as well, the segment posted a substantial increase to ¥61,754 million from ¥46,155 million in the same period of the prior year.
Key Products
Growth Drivers
- Capturing next-generation automotive semiconductor demand through focus on the SDV (Software-Defined Vehicle) field
- Acquisition of GaN technology through the Transphorm acquisition, strengthening power solutions for EV powertrain applications
- Improved gross margin driven by higher utilization rates and improved product mix
- Cross-selling opportunities from a broad product portfolio spanning both automotive control and automotive information fields
- Increased revenue from continued recovery in automotive demand
Risks
- Risk of decreased revenue from a renewed softening of the automotive market
- Risk of increased costs associated with lower factory utilization rates
- Impact on the supply chain from geopolitical risks and trade/investment restrictions including tariff measures
- Risk of delayed product portfolio transformation amid the progression of EV and SDV adoption
- Risk of deteriorating product mix due to intensifying price competition with competitors
Last updated: March 19, 2026