Murata Raises Capital Spending to ¥270 Billion, Targets Doubling Capacitor Sales
Key Facts
Murata raised its capital spending forecast for the fiscal year ending March 31, 2027, to ¥270 billion, from ¥255 billion in its previous forecast issued on July 31. The revision came as part of a financial announcement in which the company also raised its annual revenue forecast to ¥2.26 trillion, from ¥2.11 trillion previously. It also raised its operating profit forecast to ¥520 billion from ¥430 billion. The company said the new forecasts reflect "further growth in demand related to data centers." The revised annual spending plan comes alongside a separate five-year plan to expand production capacity for multilayer ceramic capacitors, components used across multiple electronics sectors.
Murata posted revenue of ¥1.091 trillion in the six months ended September 30, 2026, up 20.8% year on year. Operating profit rose 48.9% to ¥245.907 billion, while net profit attributable to owners of the parent company increased 40.6% to ¥186.152 billion. The results show profits growing faster than revenue in the first half. The figures reflect increased activity in components used in consumer products, industry and digital infrastructure. The company raised its annual revenue and operating profit forecasts alongside these results.
Capacitors were among the main sources of revenue growth, with sales in the business rising 33.1% year on year to ¥605.583 billion in the first half. Revenue from computer applications increased 61.2% to ¥235.110 billion over the same period. Multilayer capacitors are used in devices such as phones, cars, industrial equipment and data centers, according to Murata. The company said higher output and an improved product mix are supporting profits, and linked the forecast revision to further growth in demand connected to data centers. Applications cited by the company also include data centers, edge AI, mobility and robotics, among others.
Murata plans to invest about ¥1 trillion during fiscal years 2026 to 2030 to expand production capacity for multilayer ceramic capacitors. The company has allocated about ¥350 billion of this amount to buildings and ¥650 billion to production equipment. It aims for sales of these capacitors in fiscal 2030 to reach at least twice their fiscal 2025 level; this is a sales target, not an announcement of doubled production. The plan includes new production facilities in Yasugi, Shimane Prefecture, and Setouchi, Okayama Prefecture. Murata also aims to have between 1,500 and 2,000 employees at Okayama Murata by 2030.
In Okayama, the project includes total investment of about ¥150 billion. Construction of a new capacitor production building is scheduled to begin in April 2027, with completion targeted by the end of 2028. The plan also includes a building for producing sheets and raw materials needed for capacitors, to be completed by 2030. This track is part of the expansion program running through fiscal 2030, while capital spending of ¥270 billion applies specifically to the fiscal year ending in March 2027. The plan is based on the company's demand for components serving data centers and other electronic applications.
Despite raising its forecasts, Murata shares fell 9.52% to ¥6,234 on October 30, according to coverage citing Reuters. The decline came amid a broader drop in Japanese technology stocks, as investors worried about the sustainability and profitability of investments tied to AI. The company's president had previously said strong demand for capacitors had led Murata in some cases to reject orders. The orders-to-billings ratio remained just below 1.5 at the time of the remark, after reaching 1.47 at the end of June, then a record level, according to the coverage. This strong demand puts the expansion plan in the context of production capacity constraints, while market concerns focus on the expected return on investment.
Murata is scheduled to announce its third-quarter fiscal 2026 results on February 2, 2027, according to its investor relations calendar, though the date remains subject to change. The results will come after the planned start of construction on the Okayama production building in April 2027, according to the project's announced schedule. The company calendar lists the results announcement date as tentative. The Okayama plan targets completion of the capacitor production building by the end of 2028, followed by completion of the sheets and raw materials facility by 2030. The broader investment plan runs through fiscal 2030, the horizon Murata set for reaching its capacitor sales target.