Renishaw Posts Record £251.8m Quarter as Encoder Demand Climbs 84%

Renishaw recorded quarterly revenue of £251.8 million ($334.9 million) for the three months ended 30 September 2026, a 47% increase over the same period last year and the highest quarterly figure in the company's history. At constant exchange rates, first-quarter revenue grew 48% year on year and 3% against the final quarter of FY2026, extending momentum built during the second half of the previous financial year.

The Gloucestershire-based engineering group reported growth across all three business segments and all three geographic regions. It attributed the performance to sustained demand from semiconductor, aerospace and defence customers, alongside improving activity in wider industrial and automation markets. The company continues to expect strong progress in revenue and operating margin for FY2027 as a whole, though it has not raised full-year guidance.

Which segment grew fastest?

Position Measurement led. The segment posted quarterly revenue of £96.0 million ($127.7 million), up from £52.1 million ($69.3 million) a year earlier — growth of 84% at reported exchange rates and 85% at constant rates. Revenue rose 17% against the preceding quarter, setting a new segment record.

The driver was demand for open optical and laser encoders used in semiconductor manufacturing equipment, where these devices provide position feedback for the motion-control systems that advanced manufacturing processes increasingly require. Renishaw reported a further increase in the segment's order book and is investing in additional manufacturing capacity to meet demand. Interest is also growing in encoders designed for harsh operating environments, including automation, robotics and space applications.

How did Industrial Metrology perform?

Industrial Metrology, Renishaw's largest segment by revenue, generated £130.8 million ($174.0 million) in the quarter, up from £102.0 million ($135.7 million) a year earlier. That is growth of 28% at reported rates and 29% at constant rates, plus a 9% gain over the fourth quarter of FY2026 — an improvement after a relatively flat year for some traditional metrology products.

The company reported growing demand for its five-axis coordinate measuring machines and shop-floor gauging systems, with an expanding order book. Sales of metrology sensors to machine tool and measuring machine manufacturers also improved. Demand strengthened from aerospace and defence, energy and consumer electronics customers.

The pattern points to wider investment in dimensional inspection. Five-axis measurement and shop-floor gauging allow manufacturers to inspect complex components and move dimensional verification closer to production lines rather than confining it to a quality lab.

What happened in additive manufacturing?

Specialised Technologies revenue reached £25.0 million ($33.25 million), against £16.7 million ($22.2 million) a year earlier — 50% growth at both reported and constant rates. Metal additive manufacturing systems sold to aerospace, defence and medical customers were the principal driver.

Revenue came in below the £42.7 million ($56.8 million) recorded in the final quarter of FY2026, but Renishaw described that preceding quarter as exceptionally strong. The segment's order book strengthened. Spectroscopy revenue was marginally lower than a year earlier despite an improved order book, and the proposed divestment of the neurological business remains in progress.

What is the outlook?

The quarter builds on FY2026, when full-year revenue reached a record £815.8 million ($1,085 million). Renishaw continues to invest in manufacturing capacity and is working with its supply chain to support higher volumes, while emphasising the cyclical nature of demand over the medium term.

The trading update reinforces how tightly precision measurement and position feedback are bound to advanced manufacturing — from shop-floor gauging to the encoders controlling motion in semiconductor production tools. The open question for buyers and competitors alike is whether Renishaw's capacity investments will keep pace if the semiconductor cycle turns.