Panasonic Holdings deducted ¥125.6bn of US Inflation Reduction Act subsidy from cost of sales in the six months to September 2026, up from ¥104.0bn a year earlier, according to its half-year securities report. Group operating profit rose 120% to ¥363.2bn on sales of ¥4.09tn, up 7%. Net profit attributable to owners of the parent was ¥277.0bn, up 94%.
Subsidy is accounting, with a customer share
The subsidy relates to EV battery production and sales. Panasonic also cut ¥62.7bn from sales for the portion expected to pass to end users through customers, held as refund liabilities. Net of that share, ¥108.9bn received directly in the period sits in operating cash flow, which totalled ¥323.1bn. Subsidy receivables expected but not yet collected stood at ¥234.3bn current and ¥112.1bn non-current at 30 September.
Energy and AI demand carry the profit
Energy operating profit rose 192% to ¥96.5bn on sales of ¥645.9bn, up 45%. Panasonic credits higher EV battery volumes, a US tariff refund effect, a larger subsidy and data-center storage systems. The report does not put a figure on the tariff refund.
Industry operating profit rose 88% to ¥86.9bn, helped by demand for capacitors and multilayer board materials used in AI infrastructure and for servo motors and sensors used in chip-making equipment. Panasonic also raised its fiscal 2028 sales target for AI-infrastructure devices from ¥1.38tn to ¥1.6tn. That is a target, not booked revenue.
Appliances take the hit
Smart Life operating profit fell 53% to ¥7.3bn on sales of ¥644.0bn, down 2%. Panasonic booked ¥19.0bn of recall costs for drum washer-dryers, alongside higher raw material costs.