Published by Global Banking & Finance Review®
Posted on February 11, 2026
2 min readLast updated: February 11, 2026
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Renishaw's profit rose by 11% due to strong defence and semiconductor demand, reaching £57.5 million, aided by cost-reduction strategies.
Feb 11 (Reuters) - UK's Renishaw on Wednesday forecast growth in annual profit and revenue, buoyed by sturdy momentum in the second half of fiscal 2026 and strong demand from the semiconductor and defense sectors, sending shares up more than 6%.
The British engineering firm projected full-year revenue between 740 million pounds and 780 million pounds ($1.01 billion-$1.07 billion), with adjusted profit before tax expected to range from 132 million pounds to 157 million pounds.
It reported revenue of 713 million pounds and adjusted profit before tax of 127.2 million pounds for the year ended June 30, 2025.
The semiconductor and defense sectors are experiencing robust growth. AI data centers and autonomous vehicles are driving unprecedented demand for chip-making equipment, while rising global geopolitical tensions have pushed global defense spending to its highest levels since the late Cold War.
The company's adjusted profit before tax came in at 64.1 million pounds for the six-month period ended December 31, compared with 57.5 million pounds a year earlier.
"Whilst we are mindful of ongoing economic and geopolitical uncertainties, our positive momentum has continued in the early part of third quarter, and we are confident of achieving strong growth for the year as a whole," Chief Executive Will Lee said in a statement.
Shares in the Gloucestershire-headquartered firm rose as much 6.3% to 41.30 pounds in morning trade, their highest level since June 2024.
($1 = 0.7304 pounds)
(Reporting by DhanushVignesh Babu in Bengaluru; Editing by Sherry Jacob-Phillips)
Profit is the financial gain obtained when the revenue generated from business activities exceeds the expenses, costs, and taxes associated with those activities.
The semiconductor sector involves companies that design and manufacture semiconductor devices, which are essential components in electronic devices, including computers, smartphones, and other digital products.
Adjusted operating profit refers to a company's earnings before interest and taxes, adjusted for one-time items or non-recurring expenses, providing a clearer view of ongoing operational performance.
Demand in economics refers to the desire and ability of consumers to purchase goods and services at various price levels, influencing market dynamics and pricing strategies.
Cost-reduction measures are strategies implemented by businesses to lower their operational expenses, which can include streamlining processes, renegotiating contracts, or adopting new technologies.
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