TDK Raises Forecasts After First-Half Net Profit Rises 58.4%
Key Facts
TDK reported a 58.4% year-on-year increase in net profit attributable to owners of the parent to 176.421 billion yen in the six months ended September 30, 2026. Sales reached 1.561 trillion yen, up 31.9%, while operating profit rose 41.0% to 208.156 billion yen, according to the company’s results. The figures cover the first half of the fiscal year ending March 31, 2027. In an update to its annual forecast, the company raised its sales and operating profit estimates, as well as its forecasts for net profit and basic earnings per share. EL7 data showed the company’s U.S. depositary receipt, TTDKY, closed at $16.64 on October 30.
TDK raised its sales forecast for the fiscal year ending March 31, 2027, to 3.05 trillion yen from 2.58 trillion yen previously. It also increased its operating profit forecast to 365 billion yen, compared with a previous estimate of 295 billion yen. The company set its forecast for net profit attributable to owners of the parent at 280 billion yen and basic earnings per share at 147.50 yen. The revised estimates follow sales of 2.505 trillion yen and operating profit of 272.415 billion yen in the fiscal year ended March 2026. Sales that year were 13.6% higher and operating profit 21.5% higher than in the previous fiscal year.
TDK said demand for products used in artificial intelligence data centers remained strong, clearly exceeding its level in the corresponding period of the previous fiscal year. By contrast, the company described demand for information and communications technology products, including smartphones, as weak. It attributed growth in sales of rechargeable batteries and sensors in the communications market mainly to the launch of new models. It also cited higher sales of passive components, nearline hard-disk drives and suspension assemblies, supported by data-center demand. This divergence in demand across segments provides the backdrop to the company’s higher annual forecasts, without changing its description of weakness in the market for communications products.
In its outlook for fiscal 2027, the company said production of information and communications technology products, such as smartphones, could decline compared with the fiscal year ended March 2026. It attributed this to tight memory supplies and higher prices. By contrast, it expected demand for nearline hard-disk drives and components for AI data centers to remain strong. The outlook highlights divergent trajectories between the smartphone market and data-center-related products within the company’s business. TDK had set October 30, 2026, as the date for publishing its second-quarter results, while payment of the interim dividend begins on December 2, 2026.