DENSO Q3 Revenue Up 3.9%, Operating Profit Down 6.4% Year-on-Year
DENSO reported a 3.9% increase in Q3 revenue to ¥5.5 trillion, but operating profit declined 6.4% due to higher costs, tariffs, and R&D spending.
5,495.5 billion yen
375.9 billion yen
535.0 billion yen
What Happened
Consolidated revenue for the third quarter ended December 31, 2025, totaled 5,495.5 billion yen, up 3.9% from the previous year. Operating profit fell 6.4% to 375.9 billion yen, while net profit attributable to owners decreased 12.5% to 273.7 billion yen. The company attributed the revenue growth to higher vehicle sales in North America, Japan, and Asia, as well as price reflection.
“Even with the yen appreciating compared to the previous year, revenue for the current fiscal year increased compared to last, driven by higher vehicle sales in North America, Japan, and Asia, as well as price reflection. However, operating profit declined year-over-year due to rising parts costs, tariff impacts, quality-related provisions, and R&D expenditures, despite the positive impact from bus”
- Japan: revenue up 3.3%, operating profit down 34.2%
- North America: revenue up 8.0%, operating profit up 3.3%
- Europe: revenue up 3.9%, operating profit up 246.8%
- Asia: revenue up 0.3%, operating profit up 15.6%
- Other regions: revenue up 2.1%, operating profit down 2.8%
For the full fiscal year ending March 31, 2026, DENSO forecasts revenue of 7,420.0 billion yen and operating profit of 535.0 billion yen, reflecting weaker yen and cost recovery but also incorporating rising parts costs, tariff impacts, quality-related provisions, and R&D expenditures.
Why this matters
The results show how a major auto supplier is navigating rising costs and tariffs while benefiting from stronger vehicle sales in key regions.
Terms in This Story
- Operating profit
- Profit from a company's core business operations, excluding interest and taxes.
- Return on Equity (ROE)
- A measure of financial performance calculated by dividing net income by shareholders' equity.
Summarised from the linked release; details can be imperfect — always verify against the original source.