Renesas Electronics booked a ¥450.3bn gain in the three months to September on completing the sale of its Timing business to SiTime. The gain lifted IFRS operating profit for the first nine months of 2026 to ¥758.0bn, from ¥133.9bn a year earlier. The board resolved on the sale on 5 February 2026 and it closed on 1 July 2026. The gain sits in other income. Revenue rose 27.3% to ¥1.23tn.
What the gain does to the numbers
In the third quarter alone, IFRS operating profit was ¥565.3bn on revenue of ¥435.9bn. The presentation puts the IFRS operating margin at 129.7%, against 34.6% on the company's Non-GAAP basis, where operating profit was ¥150.5bn.
Non-GAAP is Renesas's own measure. It strips out acquisition-related amortisation, share-based pay and one-offs the company chooses to exclude. It also removes the Timing business's results from February to the transfer date, along with the sale gain. Third-quarter profit attributable to owners was ¥372.2bn under IFRS and ¥125.0bn on the Non-GAAP basis. The quarter also carried a ¥44.9bn valuation loss tied to Wolfspeed, which the presentation lists among the items excluded from Non-GAAP.
| Measure | IFRS | Non-GAAP |
|---|---|---|
| Third-quarter operating profit | ¥565.3bn | ¥150.5bn |
| Nine-month operating profit | ¥758.0bn | ¥408.7bn |
| Third-quarter profit attributable to owners | ¥372.2bn | ¥125.0bn |
| Nine-month revenue | ¥1.23tn | ¥1.21tn |
What the adjusted measures say about demand
Non-GAAP revenue in the quarter was ¥435.2bn, up 30.2% on a year earlier and 7.4% on the second quarter, and 1.2% above the midpoint of the company's guidance range. Excluding currency and one-off effects, growth was 22.3%. The dollar averaged ¥161 against ¥146 a year earlier, so a weaker yen is part of the headline.
The industrial, infrastructure and IoT segment led. Its revenue was ¥243.8bn, up 46.4% on the year and 12.7% on the quarter. Over nine months the segment grew 41.1%, which Renesas attributes mainly to data-center demand and a recovery in industrial and IoT markets. Automotive revenue was ¥189.5bn, up 19.3% on the year and 1.3% on the quarter. The company ties nine-month automotive growth of 15.4% to higher demand and a rebound from last year's distribution-inventory adjustment. Segment comparisons use prior periods restated to put the Timing business in "Other".
Non-GAAP gross margin was 59.4%, up 1.8 points on the year. The operating margin was 34.6%. For nine months, Non-GAAP operating profit was ¥408.7bn, up 46.5%, at a 33.7% margin.
The guide
Renesas does not issue a standalone full-year forecast. Its annual figure is nine-month actuals plus the fourth-quarter outlook, on assumed rates of ¥158 to the dollar and ¥183 to the euro. That gives Non-GAAP revenue of ¥1.66tn to ¥1.67tn, growth of 25.8% to 27.0%, with a 58.6% gross margin and a 33.2% operating margin. The previous year's operating margin was 29.3%. The notice shows no earlier forecast to compare against.
For the fourth quarter alone, the presentation guides to Non-GAAP revenue of ¥454.0bn, give or take ¥7.5bn, a 58.0% gross margin and a 32.0% operating margin. That is below the third quarter's 34.6%. It assumes ¥157 to the dollar, ¥4 stronger than in the third quarter, and each ¥1 move in the dollar shifts quarterly revenue by ¥2.2bn and operating profit by ¥1.1bn.
The sale also left the balance sheet with more cash: ¥637.2bn at the end of September, against ¥295.9bn at the end of 2025.