Eight Japanese Electronics Companies Raise FY2026 Outlook on AI, Data Centers, and Power Infrastructure
Eight major Japanese electronics companies continue to demonstrate solid business performance, supported by strong demand related to artificial intelligence (AI), data centers, and power infrastructure. Following the release of their consolidated financial results for the April–September 2025 period, five companies have revised upward their earnings forecasts for the fiscal year ending March 2026.
At the same time, the negative impact of US import tariffs under the Trump administration is now expected to be smaller than previously anticipated, providing an additional tailwind for Japan’s electronics industry.
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Power Infrastructure Drives Growth at Hitachi and Mitsubishi Electric
Hitachi revised upward its sales forecast for its energy division to 2.97 trillion yen, an increase of 130 billion yen from its previous estimate and representing 13% year-on-year growth. The expansion is driven primarily by its power grid business, including the renewal of aging transmission and distribution facilities as well as growing investments in renewable energy.
Mitsubishi Electric also raised its sales forecast for its social systems division by 50 billion yen to 540 billion yen, marking 14% growth. Strong demand for uninterruptible power supplies (UPS) used in data centers has been a key contributor.
Chief Financial Officer Kenichiro Fujimoto noted that the company currently holds an order backlog equivalent to approximately two years of UPS sales, highlighting sustained demand from data center operators.
Data Centers and Semiconductor Fabs Boost Demand for Electrical Equipment
In addition to electricity “generation and transmission,” demand for facilities that “consume” electricity—particularly data centers and semiconductor manufacturing plants—continues to rise sharply.
Toshiba reported strong sales of power transmission and distribution equipment for data center-related projects. As a result, its net profit for the April–September 2025 period surged 2.7 times year on year to 316 billion yen. Demand for transformers and switchgear was particularly strong.
NEC Achieves Record Profit on Strong Domestic AI Demand
NEC posted adjusted operating profit of 115.6 billion yen in its IT services business for the first half of fiscal 2025, more than doubling (2.1x) compared with the same period last year.
According to Osamu Fujikawa, Director and Representative Executive Officer, domestic growth “exceeded expectations,” driven largely by AI-related projects. NEC expects this momentum to continue into the second half of the fiscal year.
Sony Remains Strong While Panasonic Faces Headwinds
Sony Group is expected to maintain robust performance, supported by strong sales in its gaming and semiconductor businesses, as well as the box-office success of the film Demon Slayer: Kimetsu no Yaiba.
In contrast, Panasonic Holdings revised its full-year forecast downward, reflecting sluggish performance in its automotive battery business, which has yet to recover as quickly as anticipated.
Impact of US Tariffs Smaller Than Expected
Across the electronics industry, the negative effects of US tariffs are now expected to be more limited than initially feared. Price pass-through measures are progressing, while indirect impacts such as a slowdown in consumer demand appear to be less severe.
Hitachi revised down its estimate of the full-year negative impact on adjusted EBITA to approximately 20 billion yen, a reduction of 10 billion yen from its previous forecast.
