Shares in the scientific technology group have gained more than 55% over the past 12 months, powered by surging semiconductor orders, a sharpened portfolio and an ongoing share buyback.
Oxford Instruments PLC (LSE:OXIG) shares are extending their gains on Tuesday, backed by a semiconductor-driven order book and an ongoing £100m buyback that are together shaping what management describes as a pivotal period for the business.
Shares are trading at 3072p, up 4.3% on the session. The stock reached a 52-week high of 3318p in early June and has gained more than 55% over the past 12 months, with the bulk of that recovery coming since the autumn of 2025.
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Full-year results beat and semiconductor orders accelerate
Full-year results for the year to March 2026, released on 9 June, came in slightly ahead of expectations, according to Chief Executive Richard Tyson. On an organic constant-currency basis, and excluding the divested NanoScience business, group order intake rose 8% for the full year and 14% in the second half. Revenue declined 3% at constant currency, reflecting timing delays on larger system deliveries, while gross margin improved by 30 basis points and cash conversion reached 89%.
The standout performer was Advanced Technologies, where order intake rose 28% for the full year, driven by demand for semiconductor manufacturing tools used in datacom and augmented-reality applications. That followed 25% order growth in the first half of the same year, making the full year a second consecutive period of sharp improvement in the division. The order book ended the year 25% higher than at its start, and a large order received early in the new financial year means the company considers it already has backing for the vast majority of its FY2027 revenue expectations. Oxford Instruments raised its medium-term margin target for Advanced Technologies to 12% to 15%.
The group raised its dividend by 6.3% and the £100m share buyback was around two-thirds complete as of 31 March, with the programme expected to finish by the end of the calendar year. These steps followed January’s sale of the NanoScience business, which generated net proceeds of £42m. Chief Financial Officer Paul Fry said the disposal sharpened the group’s focus and allowed the adjusted operating margin to be restated to 17.9% on a continuing-operations basis. Currency remains a drag: a £4.5m headwind in FY2026 is expected to widen to £3.2m in FY2027 as hedge rates become less favourable.
Tyson told investors the company entered FY2027 “in great shape”, with a simpler structure, improved operations and a larger opportunity in Advanced Technologies. Analysts tracking the stock carry a consensus price target of 3173p, according to EODHD data, marginally above Tuesday’s trading level.
For FY2027, the company expects high-teens revenue growth in Advanced Technologies and low single-digit growth in Imaging and Analysis. Shareholders will hear directly from management at the annual general meeting in London on 23 July 2026. The ex-dividend date for the recently declared dividend falls on 9 July.