TDK Raises Annual Sales Forecast to 3.05 Trillion Yen After Profit Rises 58.4%
Key Facts
TDK raised its sales forecast for the fiscal year ending in March 2027 to 3.05 trillion yen from 2.58 trillion yen, after recording growth in sales and profit in the six months ended September 30, 2026. Net profit attributable to owners of the parent totaled 176.421 billion yen, up 58.4% year over year, while net sales rose 31.9% to 1.561 trillion yen. The company also raised its operating profit forecast for the fiscal year to 365 billion yen from 295 billion yen. TDK linked its business expansion to new products for certain applications and demand tied to AI data centers. The announcement came on October 30, when the company was scheduled to hold a first-half results briefing at 5:30 p.m. Japan time.
Profit growth outpaced sales growth in the first half, with operating profit rising 41.0% to 208.156 billion yen and pretax profit increasing 44.5% to 213.082 billion yen. Operating margin was 13.3% of sales, compared with 12.5% in the year-earlier period, while net profit attributable to owners of the parent as a share of sales rose to 11.3% from 9.4%. The figures reflect improved profitability alongside revenue growth, according to the company’s results. TDK attributed support for profit to increased shipments of data-center products, a weaker yen, and cost-rationalization and restructuring measures. These factors provide context for the higher annual operating profit estimate alongside the revised sales forecast.
By segment, energy products generated sales of 867.657 billion yen in the first half, up 33.9% year over year. Those sales accounted for 55.6% of total sales, compared with 54.8% in the year-earlier period. Sales of magnetic products rose 52.8% to 176.873 billion yen, lifting their share of sales to 11.3% from 9.8%. The company said all segments recorded year-over-year sales growth, driven by new products for certain applications and strong demand tied to AI data centers. The results for the energy and magnetic products segments show that growth extended across more than one business at the company.
The first-half results followed a strong first quarter of the fiscal year ending in March 2027, when sales rose 38.3% year over year to 741.0 billion yen and operating profit increased 53.0% to 86.3 billion yen. TDK said both were record levels for a first quarter. In its review of that quarter, the company said production of information and communications technology products, including smartphones, declined year over year because of memory shortages and higher prices. By contrast, demand for nearline HDDs used in AI data-center applications remained strong. Weakness in some smartphone-related products thus coincided with continued strength in demand for data-storage components.
TDK had forecast during its first-quarter question-and-answer session that second-quarter sales would rise, citing growing demand tied to the AI ecosystem and the start of the peak season for smartphone demand; it also expected operating profit to increase as capacity utilization improved. The first-half results announced later show year-over-year growth in sales and profit, alongside higher annual forecasts. On dividends, the company’s medium-term plan targets a payout ratio of 35%. Before the first-half results, it had expected total annual dividends of 40 yen per share for the fiscal year ending in March 2027; the available facts did not include an update to that forecast alongside the higher sales and profit estimates. In the market, TTDKY shares closed at $17.52 on October 29, after $17.92 in the previous session.