TDK Corporation has raised its forecasts for the year to March 2027, saying first-half results beat what it assumed when it issued guidance on 28 April 2026.
The new numbers
Sales are now forecast at ¥3.05tn, up from ¥2.58tn, an increase of 18.2% on the April guidance. Operating profit is forecast at ¥365bn against ¥295bn before, a rise of 23.7%. Profit attributable to owners of the parent is forecast at ¥280bn, up from ¥225bn, and earnings per share at ¥147.50, up from ¥118.54.
Against last year's actuals, the new guidance implies sales growth of 21.8% and operating profit growth of 34.0%, from ¥272.4bn. Do not read the 18.2% as year-on-year growth: it measures the revision only.
What management points to
TDK says demand for smartphone and other ICT products was weak in the half, while demand for AI data-centre products ran well above the prior year. It cites rechargeable batteries and sensors, helped by new model launches, and passive components. It also cites a sharp rise in sales of heads and suspensions for near-line hard disk drives. The revision notice gives no forecast by product line.
First-half sales were ¥1.56tn, up 31.9%, and operating profit was ¥208.2bn, up 41.0%. TDK's earnings summary says the weaker yen added about ¥134.4bn to sales and about ¥19.9bn to operating profit in the half. It assumes ¥155 to the dollar and ¥180 to the euro from the third quarter.
Dividend and one-off costs
The board set an interim dividend of ¥25 a share, ¥5 above the earlier forecast, and lifted the year-end forecast by the same amount to ¥25. The annual total is now forecast at ¥50, against ¥40 in the April guidance and ¥36 last year.
TDK also expects restructuring and other one-off costs of about ¥11bn for the year, up from about ¥6bn planned at the start. The company cautions that actual results and dividends may differ from the forecasts.