DENSO (6902) Q2 2026 earnings summary

Executive summary

• Revenue increased 3.3% year-over-year to ¥3,590.5 billion, driven by higher vehicle sales in North America and Asia and expanded sales of focus-area products, despite yen appreciation.

• Operating profit declined 15.8% year-over-year to ¥211.4 billion due to quality-related provisions, tariffs, and higher R&D expenses, partially offset by cost reductions and increased production.

• Net profit attributable to owners dropped 31.2% year-over-year to ¥131.4 billion.

Financial highlights

• Revenue rose to ¥3,590.5B (+3.3%) compared to the same period last year.

• Operating profit fell to ¥211.4B (-15.8% YoY), with margin dropping from 7.2% to 5.9%.

• Gross profit increased to ¥520.9B from ¥499.6B year-over-year.

• Net profit for the period was ¥151.2B, down from ¥205.6B year-over-year.

• Basic earnings per share decreased to ¥47.70 from ¥65.56 year-over-year.

Outlook and guidance

• Full-year revenue forecast revised upward to ¥7,240.0B, reflecting updated exchange rates.

• Full-year operating profit forecast is ¥651.0B, reflecting revised FX assumptions and quality provisions.

• Profit attributable to owners forecast at ¥497.0B, up 18.6% year-over-year.

• Annual dividend forecast maintained at ¥64 per share.

• Assumed FX rates for Q3 onward: 1 USD = 145 yen, 1 EUR = 170 yen.