Why is Amada stock surging today?
Why is Amada stock surging today?
Amada stock surged 9.1% to ¥2,503 on Friday after the company released blockbuster first-half results.
Amada reported a 91.6% jump in operating profit to ¥28.02 billion and revenue for the April–September 2026 period rising approximately 25% year-over-year to around ¥230.4 billion, well above expectations. and revenue for the April–September 2026 period rising approximately 25% year-over-year to around ¥230.4 billion, well above expectations.
Alongside the results, management raised its full-year guidance for the fiscal year ending March 2027, lifting the revenue target to ¥490 billion from ¥460 billion, operating profit to ¥58 billion from ¥48 billion, and net profit to ¥40 billion from ¥34 billion, citing buoyant customer capital expenditure demand and a weaker yen than originally modeled.
The sheer magnitude of the earnings surprise sent the stock briefly to its daily circuit-breaker limit of ¥2,794 at the open — a gain of ¥500 from the prior session — before pulling back to current levels.
The company’s ongoing share repurchase program, which authorizes the buyback of up to 8% of shares outstanding for as much as ¥50 billion through March 2027, continues to underpin investor confidence by reducing the share count and signaling management’s conviction in the company’s long-term value.
The broader Tokyo equity market provided a constructive backdrop, with the Nikkei 225 rising approximately 1.5% to above 61,700 on today’s session, marking gains in four of the past five trading days and putting the benchmark on track for its strongest weekly performance in months.