TDK: Lifts FY2027 operating profit forecast to ¥365bn

TDK raised its full-year forecasts for revenue, operating profit, profit before tax and profit for the year. Compared with its previous outlook, operating profit is up ¥70 billion and profit for the year is up ¥55 billion.

Against the previous forecast, revenue is up 18.2%, operating profit 23.7%, profit before tax 23.3% and profit for the year 24.4%. Each revised profit forecast is above the actual result for the year ended March 2026. TDK also raised its basic earnings-per-share forecast to ¥147.50 from ¥118.54. Profit forecasts exceed last year's results

TDK set its interim dividend for FY2027 at ¥25 a share and revised its year-end dividend forecast to ¥25. The full-year dividend forecast is now ¥50, up from ¥40.

The record date for the interim dividend is Sept. 30, 2026, and its effective date is Dec. 2, 2026. The total dividend payment will be ¥47.458 billion. Both the interim and year-end dividends are ¥5 higher than previously forecast, and the annual payout exceeds the FY2026 actual of ¥36 a share.

Growing demand for products related to AI data centers prompted the forecast upgrade. While demand for ICT products such as smartphones was subdued, TDK increased sales in several product categories.

• Rechargeable batteries and sensors: Sales expanded in the ICT market, supported in part by the launch of new models.
• Passive components: Robust demand from data centers drove higher revenue.
• HDD-related products: Sales of heads and suspensions for nearline HDDs rose significantly.
• TDK's decision: Interim results exceeded expectations as of April 28, prompting a review of full-year earnings and dividend forecasts.

Growth in data-center-related products and products for new models is offsetting weakness in the smartphone market. TDK said actual results and dividend amounts may differ from its forecasts because of various factors.