Renishaw Shares Ride AI Chip Boom to Record Results as CEO Flags Strong FY2027 Start
Renishaw’s shares have rallied more than 50% since April on hopes the AI chip cycle would show up in its numbers. Wednesday’s results confirm it, with a bullish word on FY2027 too.
Renishaw (LON: RSW), the UK precision engineering group, reported record full-year revenue and profit on Wednesday. This confirmed that the AI-driven semiconductor equipment upcycle traders had been pricing in for months has now shown up in the numbers.
Renishaw shares closed at 5,535p on Tuesday, near their 52-week high of 5,580p and up from around 3,600p in early April — a rally of more than 50% built largely on hopes that today’s results would confirm the AI-driven chip cycle already being priced in.
Full-year revenue rose 14% to £815.8m, or 17% at constant currency, from £713.0m, while adjusted profit before tax jumped 32% to £168.0m from £127.2m. Statutory profit before tax rose 27% to £150.0m after absorbing £18.0m of redundancy and other one-off costs. Adjusted earnings per share climbed to 179.5p from 137.8p as the adjusted operating margin expanded from 15.7% to 18.7%, with Q4 revenue alone hitting a record £244.2m, up 28% year-on-year.
Sponsored content
Ready to put what you’ve learned into practice?
Try IG’s platform with £10,000 in virtual funds and practise trading
without putting your own money at risk.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Sponsored content
Learn the markets with IG Academy
Build your knowledge with IG Academy educational content, then use a
demo account to practise what you’ve learned on the IG platform.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Sponsored content
See how trading works before risking real money
IG’s demo gives you access to thousands of markets and £10,000 in
virtual funds, so you can explore the platform and test your ideas first.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Sponsored content
Turn trading theory into practical experience
Learn with IG Academy, explore charts and market tools, and practise
strategies in a simulated trading environment before going live.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Sponsored content
Ready to take your learning further?
IG combines market education, analysis and an established trading platform,
giving you the tools to keep learning as you develop your trading skills.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
The growth came from Position Measurement, whose semiconductor encoders benefited from AI-related chipmaking demand: revenue rose 26% to £260.9m and adjusted operating profit rose 53% to £71.5m, a 27.4% margin. Specialised Technologies, covering additive manufacturing for aerospace and defence, swung from a £9.9m loss to a £4.7m profit as revenue grew 43% to £107.5m, while the core Industrial Metrology arm grew just 4% to £447.4m. Renishaw also proposed a final dividend of 65.2p plus a 70.0p special dividend, taking the total to 82.0p, up 5%.
Renishaw’s revenue and adjusted profit before tax both set new records in FY2026, driven by the semiconductor upcycle. Source: Renishaw plc.
FY2027 has started strongly as we continue to benefit from the current upturn in demand for semiconductor manufacturing equipment. We expect further strong progress on revenue, profit and operating margin in the year ahead.
Will Lee, Renishaw chief executive
That is the forward signal traders have been positioning for since Bank of America upgraded Renishaw to Buy on 11 September, lifting its target to 5,400p from 2,779p.
The question for traders now is whether that guidance justifies a share price that has almost doubled since April, or simply confirms what the market already priced in after the BofA upgrade.
The AskTraders Analyst Team features experts in technical and fundamental analysis, as well as traders specializing in stocks, forex, and cryptocurrency.
