TDK (6762) Q3 2026 earnings summary

Executive summary

• Net sales and operating profit for the first nine months rose 11.3% year-over-year, reaching record highs, driven by strong ICT, HDD, and industrial equipment demand, with notable growth in small capacity batteries and sensors.

• Operating profit increased by ¥21.6 billion year-over-year to ¥230.7 billion, and net profit attributable to owners of parent grew 12.6% to ¥181.2 billion.

• All business segments reported year-over-year sales growth, though automotive and BEV demand remained weak.

• Q3 net sales rose 16.2% year-over-year to ¥675.2 billion, with operating profit up 9.7% and EPS at ¥36.77.

Financial highlights

• Nine-month net sales: ¥1,858.6 billion (+11.3% YoY); operating profit: ¥230.7 billion (+10.4% YoY); net profit attributable to owners: ¥181.2 billion (+12.6% YoY); EPS: ¥95.48.

• Q3 net sales: ¥675.2 billion (+16.2% YoY); operating profit: ¥83.1 billion (+9.7% YoY); net profit attributable to owners: ¥69.8 billion (+26.5% YoY).

• Free cash flow for nine months: ¥104.9 billion, above projections but down from ¥213.5 billion YoY.

• Cash and cash equivalents at period end: ¥878.2 billion.

• Overseas sales accounted for 92.8% of total net sales.

Outlook and guidance

• Full-year net sales forecast revised up to ¥2,470.0 billion (+12.0% YoY); operating profit to ¥265.0 billion (+18.2% YoY); net profit attributable to owners to ¥190.0 billion (+13.7% YoY); EPS to ¥100.11.

• Free cash flow forecast raised to ¥115.0 billion.

• Dividend forecast increased to ¥34 per share, with a payout ratio target of 34–35%.

• CapEx planned at ¥300 billion (+¥20 billion); R&D expenses to rise to ¥280 billion.

• One-time restructuring costs of approximately ¥13.0 billion expected for FY March 2026.