DENSO Q1 revenue rises 9.1%, but operating profit falls 21.5%
DENSO's first-quarter revenue grew 9.1% to 1,913.9 billion yen, but rising costs dragged operating profit down 21.5% to 84.2 billion yen.
- 1,913.9 billion yen (up 9.1%)
- 84.2 billion yen (down 21.5%)
- 67.9 billion yen (down 14.4%)
- 7,750.0 billion yen (up 2.8% vs previous year)
What Happened
DENSO reported consolidated revenue of 1,913.9 billion yen (US$11.8 billion) for the first quarter ended June 30, 2026, up 9.1% year over year. Consolidated operating profit fell 21.5% to 84.2 billion yen (US$0.5 billion), and profit attributable to owners of the parent company fell 14.4% to 67.9 billion yen (US$0.4 billion). The company cited higher vehicle sales and increased demand in the electrification and intelligence fields for the revenue gain, while rising parts and material costs and continued investments for future growth weighed on profit.
“Revenue in the first quarter increased compared to the previous year, driven by higher vehicle sales and increased demand in the electrification and intelligence fields. However, despite positive effects of the weakening Japanese yen, operating profit decreased compared to the same period last year, due to rising parts and material costs and our continued focus on strengthening investments for fut”
- Japan: revenue up 9.5% to 1,110.0 billion yen (US$6.8 billion); operating profit down 43.3% to 7.6 billion yen (US$46.6 million).
- North America: revenue up 13.7% to 538.1 billion yen (US$3.3 billion); operating profit up 12.1% to 25.3 billion yen (US$156.0 million).
- Europe: revenue up 6.3% to 198.8 billion yen (US$1.2 billion); operating loss narrowed from -13.8 billion yen to -8.6 billion yen (US$-53.1 million).
- Asia: revenue up 6.6% to 489.2 billion yen (US$3.0 billion); operating profit down 12.2% to 41.8 billion yen (US$257.9 million).
- Other areas: revenue up 23.0% to 37.0 billion yen (US$0.2 billion); operating profit up 31.6% to 7.3 billion yen (US$44.7 million).
- 7,750.0 billion yen (US$47.8 billion); +210.0 billion yen (+2.8%) vs previous FY, +80.0 billion yen (+1.0%) vs previous
- 500.0 billion yen (US$3.1 billion); -52.5 billion yen (-9.5%) vs previous FY, unchanged vs previous forecast
- 382.0 billion yen (US$2.4 billion); -61.8 billion yen (-13.9%) vs previous FY, unchanged vs previous forecast
DENSO also forecasts profit before profit taxes of 553.0 billion yen (US$3.4 billion), down 64.3 billion yen (-10.4%) from the previous fiscal year, and ROE of 7.2%, down 1.3 percentage points. The full-year forecast assumes exchange rates of US$=154.6 yen, Euro=181.3 yen, and CNY=22.4 yen, while first-quarter results were translated at US$=162.2 yen, the approximate rate on June 30, 2026.
“In this fiscal year, we forecast 7,750.0 billion yen (US$47.8 billion) in revenue and 500.0 billion yen (US$3.1 billion) in operating profit. Our revenue forecast is based on first quarter production volumes and foreign exchange rates, and our operating profit forecast remains unchanged as we offset the impact of rising parts and material costs through foreign exchange gains and business improveme”
Previously from Denso
DENSO's fiscal year 2026 results, reported in April 2026, showed revenue rising 5.3% to 7,540.0 billion yen and operating profit up 6.5%. The company at that time forecast a profit decline for fiscal 2027.
Background drawn from MotorClaw's earlier coverage of Denso's official releases.
Why this matters
DENSO's first-quarter results show that strong vehicle sales and demand in electrification and intelligence fields could not prevent a profit decline because of rising parts and material costs and continued investment spending. The full-year forecast also projects lower operating profit than the previous year, suggesting these cost pressures will persist. As a major supplier to the auto industry, DENSO's numbers offer a window into cost and demand trends…
Terms in This Story
- operating profit
- Profit a company makes from its core business operations, before interest and taxes.
- fiscal year
- A 12-month period used for financial reporting that may not align with the calendar year.
- profit attributable to owners of the parent company
- The portion of a company's net profit that belongs to its shareholders after accounting for minority interests.
- ROE
- Return on equity; net income divided by shareholders' equity, a measure of profitability.
Summarised from the linked release; details can be imperfect — always verify against the original source.