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ROHM (TSE:6963) Stock Recovers Profit But Trailing Loss Deepens

Simply Wall St · 2d ago

ROHM stock closed at ¥4,613 on Thursday, steady over the past week and still working off a weak 30 day patch where it fell about 14%. That muted one day reaction comes alongside a quarter that puts profit back at the center of the story. Basic earnings per share came in at ¥23.33 with net income of ¥9,006m, a sharp contrast to the heavy loss booked just one quarter earlier. For a company priced on rich sales multiples and a promised earnings recovery, this result focuses attention on whether that profit path now looks more real.

Is ROHM now priced for a clean earnings reset or for a profit rebound that may be hard to deliver at a 3.6x P/S premium to peers? See how that premium screens against fundamentals in the valuation analysis for ROHM.

Q1 2027 Earnings Summary

  • Revenue (Q1 2027 vs Q1 2026): ¥135,739m vs. ¥116,205m (up about 17%)
  • Net Income, Excluding Extra Items (Q1 2027 vs Q1 2026): ¥9,006m profit vs. ¥2,966m profit (up about 204%)
  • Basic EPS (Q1 2027 vs Q1 2026): ¥23.33 vs. ¥7.68 (up about 204%)
  • Trailing 12 Month Net Income, Excluding Extra Items (Q1 2027 vs Q1 2026): loss of ¥152,403m vs. loss of ¥50,587m (loss widened to about three times the prior-year level)

Tired of scrolling through walls of ROHM figures and still feeling unsure what really changed this quarter? Get a clear visual read on the company with a full breakdown of its valuation profile in the company report for ROHM.

TSE:6963 Trailing 12-Month Revenue & Expenses Breakdown as at Aug 2026
TSE:6963 Trailing 12-Month Revenue & Expenses Breakdown as at Aug 2026

ROHM bull story: profit reset and product traction

Optimists argue ROHM is entering a cleaner earnings phase as higher value SiC and power IC exposure to xEVs, AI servers and automotive compute starts to show through. The latest quarter does offer some support. Revenue is ¥135,739m and profit is back in the black at ¥9,006m with basic EPS at ¥23.33. That is a clear step up from the previous loss and lines up with management’s push toward higher margin mix and tighter costs. Recent product moves into AI server power, 48V automotive and terahertz sensing also fit the narrative that ROHM is building multiple growth legs rather than relying on one cycle. For a thesis built on operational execution, the return to profit and breadth of recent launches are credible milestones hit.

ROHM bear concerns: earnings quality and reset risk

Bears focus on weak earnings quality and the risk that the reset is incomplete. The trailing 12 month picture backs up that concern. ROHM still reports a loss of ¥152,403m over the period, which is roughly three times the prior year loss. That signals the recovery is very early and that one profitable quarter has not yet repaired the broader earnings profile. The earnings narrative also relies on restructuring, fixed cost cuts and better capital discipline. The larger trailing loss suggests these levers are not yet visible in full in the reported numbers. Recent product and ecosystem launches in SiC, automotive ICs and terahertz are encouraging but likely carry limited near term profit. For now, bears can point to the sizeable trailing loss as a milestone not yet cleared.

Compare ROHM’s push toward higher margin SiC and power IC growth with what analysts are signaling after the latest return to profit, and ask whether the larger trailing loss is still dragging on sentiment. See the consensus price target analysis for ROHM

Stay Ahead With ROHM Insights

If ROHM’s return to profit and premium P/S multiple have caught your attention, register for free with Simply Wall St and add it to a Watchlist to track price against fair value and watch for a better entry point. Once you decide to build a position, use the Portfolio Command Center to cut through market noise and focus on the key updates that really matter to your holdings. For longer term context, tap into the Community to see how other investors are thinking about the same risks and potential catalysts. By surfacing hidden shifts in the story early, you can react faster and stay a step ahead of the market.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.