April 20 (Reuters) - British engineering firm Renishaw raised its 2026 revenue and profit forecasts on Monday, citing strong demand from customers in the semiconductor and electronics manufacturing
UK's Renishaw lifts 2026 forecasts on chip and defence demand, shares jump
Renishaw's Upgraded Forecasts and Market Drivers
Strong Demand from Key Sectors
April 20 (Reuters) - Engineering company Renishaw raised its 2026 revenue and profit forecasts on Monday, citing strong demand from semiconductor, electronics, aerospace and defence customers, with its shares the best performer on Britain's mid-cap index.
Demand for chip-making equipment is surging as growth in artificial intelligence data centres and autonomous vehicles boosts the need for semiconductors, while countries have also ramped up defence spending.
Impact of Global Events on Supply Chains
However, the Iran war has pressured global supply chains and driven energy and transportation costs higher for consumers and businesses, dampening sentiment.
Renishaw's Response and Analyst Insights
Company Strategy Amid Challenges
Renishaw, which makes precision measurement instruments, said it was "actively managing" challenges and costs, without giving further details.
Analyst Reactions
"Strength from semicon equipment manufacturers comes as little surprise," analysts at Panmure Liberum said in a note, adding that Renishaw's update was indicative of strengthening momentum at the company, a view echoed by Peel Hunt analysts.
Industry Trends and Financial Projections
Semiconductor Industry Growth
Strong forecasts from bellwethers ASML and TSMC last week pointed to another quarter of hefty spending by cloud-computing giants as they race to secure the advanced chips needed for artificial intelligence build-outs.
Global Investment in Semiconductor Manufacturing
Worldwide 300mm fab equipment spending, a measure of global investment in advanced semiconductor manufacturing, is expected to rise 18% to $133 billion this year and 14% to $151 billion in 2027, industry body SEMI said this month.
Renishaw's Financial Outlook
Renishaw now expects 2026 adjusted profit before tax of between 145 million pounds ($195.58 million) and 165 million pounds, and revenue of between 775 million and 805 million pounds, up from 132 million-157 million pounds and 740 million-780 million pounds, respectively.
Market Reaction
The company's shares rose as much as 9.8% to 4,578 pence, their highest since March 2022, having more than doubled in the past 12 months. The FTSE 250 mid-cap index was down 1.2% at 0902 GMT.
($1 = 0.7414 pounds)
(Reporting by Neeshita Beura in Bengaluru; Writing by Pushkala Aripaka; Editing by Subhranshu Sahu, Kirsten Donovan)
