Tdk Stock Earnings Reports

Key points for investors: TDK reported Q1 FY ending March 2026 net sales of JPY535.8 billion (up 3.3% YoY) and operating profit of JPY56.4 billion (down 2.5% YoY). Profit before tax and net profit fell materially (–17.2% and –30.5%, respectively), driven largely by significant yen appreciation and resulting foreign exchange losses, plus the absence of a prior-year tax reversal. Management estimates FX sensitivity of roughly JPY2 billion annual profit impact per JPY1 move vs. the US dollar. Segment highlights: energy application products (rechargeable batteries and small-capacity batteries for ICT) and HDD suspension assemblies showed strong sales and improved profitability; passive components (notably ceramic capacitors and inductive devices tied to automotive) and automotive-related sensors weakened due to slower BEV demand; MEMS microphones and TMR sensors for smartphones contributed to growth and margin improvement. Q2 quarter-over-quarter, management expects sequential revenue increases across segments (passive components ~0–3%; sensors +12–15%; magnetic applications +10–13%; energy products +12–15%), assuming JPY140/USD. Free cash flow was slightly negative (–JPY3.9 billion) in Q1 after acquisitions related to the AI ecosystem; operating cash flow was JPY59.0 billion and capex/investment was JPY62.9 billion. Given policy and geopolitical uncertainty (tariff risks, Middle East tensions), TDK is keeping its full-year, range-based guidance unchanged and continues to present both a base and a risk scenario for device production volumes. Other points: no change to assumptions for CapEx, D&A, R&D, ROIC/free cash flow targets or dividend policy; TDK will publish the English United Report on Aug 8 and hold Investor Day on Sept 1.