DENSO (6902) Q3 2026 earnings summary

Executive summary

• Revenue increased 3.9% year-over-year to ¥5,495.5 billion, driven by higher vehicle sales, price adjustments, and price reflection, despite yen appreciation.

• Operating profit declined 6.4% year-over-year to ¥375.9 billion due to higher parts and material costs, tariffs, quality provisions, and increased R&D spending.

• Net profit attributable to owners fell 12.5% to ¥273.7 billion.

• Comprehensive income surged to ¥787.6 billion from ¥106.6 billion, mainly due to mark-to-market gains on investment securities.

Financial highlights

• Revenue rose from ¥5,288.4 billion to ¥5,495.5 billion year-over-year.

• Operating profit decreased from ¥401.6 billion (7.6% margin) to ¥375.9 billion (6.8% margin).

• Net profit attributable to owners fell 12.5% to ¥273.7 billion.

• Gross profit increased to ¥830.4 billion from ¥784.7 billion year-over-year.

• Basic earnings per share dropped to ¥100.12 from ¥107.62 year-over-year.

Outlook and guidance

• Full-year revenue forecast raised to ¥7,420.0 billion (+2.5% to 3.6% year-over-year).

• Operating profit forecast set at ¥535.0 billion, down 17.8% from previous forecast.

• Net profit forecast at ¥420.0 billion, down 15.4% year-over-year.

• Basic EPS forecast for the year is ¥152.49.

• Exchange rate assumptions for Q4: 1 USD = 155 yen, 1 EUR = 180 yen.