Sumitomo Electric Industries' information-communications segment is where the half-year's sharpest growth sits. Segment sales rose 48.8% to ¥201.5bn in the six months to September 2026, an increase of ¥66.0bn, and operating profit climbed to ¥61.2bn from ¥22.1bn a year earlier, according to its interim earnings report. The company attributes the jump to the expansion of the generative AI market, which lifted demand for data-center optical wiring products and optical devices. Higher volumes, a better product mix, productivity gains and the weaker yen also helped profit.
The company says it will add capacity in optical cables, optical connectors, optical devices and indium phosphide substrates, and develop products for faster, lower-latency and lower-power data transmission.
Group results and guidance
Group sales rose 16.5% to ¥2.76tn, operating profit 43.5% to ¥219.6bn, and profit attributable to owners of the parent 62.7% to ¥159.4bn, all records for an interim period, the company said. Other segments did not all follow: automotive operating profit fell by ¥11.6bn to ¥53.8bn, with the company citing Middle East-driven raw-material costs and higher copper prices.
Sumitomo Electric raised its full-year forecasts. Sales are now guided to ¥5.75tn (previously ¥5.4tn), operating profit to ¥500bn (¥450bn) and net profit to ¥370bn (¥340bn).
Dividend
In a separate notice, the company raised its year-end dividend forecast by ¥5 to ¥25 a share, taking the annual forecast to ¥44 after the interim payout of ¥19. The company split its shares four-for-one on 1 July 2026. Before the split, the prior year's dividend was ¥154; on a no-split basis, the current-year forecast would be ¥176. The ¥44 and the ¥154 are therefore not directly comparable.
The interim report is not subject to auditor review.