TDK (6762) Q1 2026 earnings summary

Executive summary

• Net sales rose 3.3% year-over-year to ¥535.8 billion, driven by strong ICT and HDD demand, but offset by weak automotive and industrial equipment markets and significant yen appreciation.

• Operating profit declined 2.5% year-over-year to ¥56.4 billion, mainly due to yen appreciation and lower automotive shipments.

• Net profit attributable to owners fell 30.5% to ¥41.5 billion, impacted by FX losses and absence of prior year tax reversal.

• Overseas sales accounted for 92.1% of total sales, up 0.2 points year-over-year.

• Robust ICT and HDD markets offset declines in automotive, especially BEVs.

Financial highlights

• Net sales: ¥535.8 billion, up 3.3% year-over-year; operating profit: ¥56.4 billion, down 2.5% year-over-year.

• Profit before tax: ¥57.6 billion, down 17.3% year-over-year.

• Net profit: ¥41.5 billion, down 30.5% year-over-year.

• Basic EPS: ¥21.85, reflecting share split adjustment.

• Cash and cash equivalents at quarter-end were ¥710.4 billion, up ¥27.8 billion year-over-year.

Outlook and guidance

• FY March 2026 net sales projected at ¥2,120–2,200 billion, operating profit at ¥180–225 billion, and net profit at ¥135–170 billion.

• Q2 expects revenue growth in all segments, with energy and magnetic application products forecasted to rise 12–15% and 10–13% respectively.

• Full-year guidance and capital plans remain unchanged; base and risk scenarios maintained due to ongoing tariff negotiations and demand uncertainty.

• Exchange rate assumptions for Q2 and beyond: JPY 140/USD, JPY 155/EUR.

• Dividend policy targets a 35% payout ratio; annual dividend forecast for FY March 2026 is ¥30 per share (post-split).