Panasonic (6752) Q1 2026 earnings summary

Executive summary

• Sales declined year-on-year due to automotive deconsolidation, but all other segments posted sales and profit growth, driven by generative AI, process automation, and Connect.

• Adjusted operating profit and net profit increased, supported by improved income taxes and segment growth, despite weaker non-operating income.

• Operating cash flow declined year-on-year, mainly due to the automotive deconsolidation.

• Comprehensive income turned negative, mainly due to foreign exchange losses.

• Full-year group-wide forecast remains unchanged, with U.S. tariff impacts not yet factored in.

Financial highlights

• Consolidated sales decreased 11% year-on-year to JPY 1,896.7 billion; sales excluding automotive rose 2%.

• Adjusted operating profit rose to JPY 91.5 billion (4.8% margin); net profit to JPY 71.5 billion (3.8% margin); operating profit to JPY 86.9 billion.

• EBITDA was JPY 189.9 billion (10.0% margin), down from JPY 196.7 billion year-on-year.

• Operating cash flow for Q1 was JPY 180.3 billion, down year-on-year.

• Net cash position was -JPY 745.7 billion; cash and cash equivalents at quarter-end were JPY 742.2 billion.

Outlook and guidance

• Full-year forecast remains unchanged at sales of JPY 7,800 billion, adjusted operating profit of JPY 500 billion, and net profit of JPY 310 billion.

• U.S. tariff impacts from Q2 onward are not yet included in the forecast due to ongoing assessment; impact estimated at less than 1% of consolidated sales.

• Connect and Energy segments are expected to be most affected by U.S. tariffs.

• Short-term EV market slowdown anticipated due to U.S. tariffs and IRA 30D tax credit termination, but long-term electrification outlook unchanged.

• No revision to the previously announced financial forecast.