DENSO (6902) Q1 2026 earnings summary

Executive summary

• Revenue for the quarter was ¥1,754.1 billion, nearly flat year-over-year, supported by strong domestic vehicle sales but offset by a strong yen and lower sales elsewhere.

• Operating profit declined 11.1% year-over-year to ¥107.2 billion, mainly due to increased tariffs, adverse FX rates, and higher investment in R&D and personnel.

• Profit attributable to owners of the parent fell 16.1% year-over-year to ¥79.3 billion.

• Measures to enhance corporate value include selling shares in Toyota Industries and initiating a tender offer for its own shares.

Financial highlights

• Q1 FY2026 revenue: ¥1,754.1B, up ¥0.3B (+0.0%) year-over-year.

• Operating profit: ¥107.2B (6.1% margin), down ¥13.4B (-11.1%) year-over-year.

• Net profit attributable to owners: ¥79.3B, down ¥15.2B (-16.1%) year-over-year.

• Gross profit for the quarter was ¥245.7B, down from ¥251.8B year-over-year.

• Basic earnings per share dropped to ¥28.50 from ¥32.45 year-over-year.

Outlook and guidance

• FY2026 revenue forecast raised to ¥7,200.0B (+2.1% from previous), reflecting Q1 results and tariff cost adjustments.

• Operating profit forecast unchanged at ¥675.0B (9.4% margin), supported by cost minimization and price adjustments.

• Net profit forecast: ¥515.0B (7.2% margin); ROE projected at 10.7%.

• The company expects to offset tariff impacts with price increases and cost reductions from Q2 onward.

• Assumed exchange rates for the remainder of the year are 1 USD = 145 yen and 1 EUR = 160 yen.