Denso revises FY2026 earnings forecast, cuts operating profit outlook

Denso Corporation revised its consolidated financial forecasts for the fiscal year ending March 31, 2026. While revenue is now projected to increase to JPY 7,240,000 million (up 0.6% from previous forecast of JPY 7,200,000 million), operating profit is expected to decrease to JPY 651,000 million (down 3.6% from JPY 675,000 million). This adjustment factors in second-quarter financial results, including quality provisions, and a reassessment of foreign exchange rate assumptions.

The downward revisions extend to profit before income taxes, now at JPY 714,000 million (down 3.9%), and profit attributable to owners of the parent company, now at JPY 497,000 million (down 3.5%). Basic earnings per share are consequently revised to JPY 180.52. These changes incorporate an updated foreign exchange rate assumption of 1 USD = 145.0 JPY and 1 EUR = 170.0 JPY for the third quarter onwards.

Denso's interim consolidated financial results for the second quarter (April 1 to September 30, 2025) show revenue of JPY 3,590,467 million, operating profit of JPY 211,417 million, and profit attributable to owners of the parent company of JPY 131,357 million. These results indicate a 3.3% increase in revenue but a 15.8% decrease in operating profit compared to the prior interim period.