Murata Manufacturing (6981) Q1 2027 earnings summary

Executive summary

• Revenue for Q1 FY2026 reached 502.3 billion yen, up 20.7% year-over-year, driven by strong demand in data centers, automotive, and mobility sectors, supported by yen depreciation.

• Operating profit rose 59.8% year-over-year to 98.5 billion yen, with profit attributable to owners up 63.7% to 81.4 billion yen, benefiting from higher production output and a weaker yen.

• Growth was led by capacitors, EMI filters, and inductors, especially for data centers, mobility, and smartphones.

• Orders and backlog hit record highs, with robust demand across applications, especially data centers and AI servers.

Financial highlights

• Q1 FY2026 revenue: 502.3B yen (+20.7% YoY, +9.0% QoQ); operating profit: 98.5B yen (+59.8% YoY, +24.9% QoQ); profit attributable to owners: 81.4B yen (+63.7% YoY).

• Gross profit margin improved as gross profit rose to 229.9B yen from 172.7B yen YoY.

• Basic earnings per share increased to 44.71 yen from 26.83 yen YoY.

• Free cash flow for Q1: -32.9B yen; cash and equivalents at period end: 557.5B yen.

• Total assets reached 3,210.5B yen, with equity attributable to owners at 2,758.9B yen and an equity ratio of 85.9%.

Outlook and guidance

• FY2026 revenue forecast revised up to 2.11 trillion yen (+7.7% vs April forecast, up 15.2% YoY), with operating profit forecast at 430.0B yen (+13.2% vs April, up 52.6% YoY).

• Profit attributable to owners forecast at 338.0B yen, with basic EPS of 185.68 yen.

• Growth expected from data center and AI server demand, with assumed exchange rate revised to JPY 155/USD from Q2.

• Capital investment plan raised to 255.0B yen to expand production capacity.

• Full-year dividend forecast unchanged; 150.0B yen share repurchase planned.