IT and AV Equipment FY2026 Full Year: Strategic Focus Separates Winners and Losers

In the fiscal year ended March 2026, the industry accelerated its drive toward selective focus, sharpening individual corporate strengths.

Four key themes defined the period:

• Resilient global demand: Product demand remained steady across North America and Asia.
• Foreign exchange tailwinds: A weaker yen than expected boosted companies with high ratios of overseas sales.
• Withdrawal from unprofitable operations: Firms sold off legacy and non-core businesses to improve profitability.
• Active __shareholder returns__: Backed by earnings recoveries, companies announced large-scale share buybacks and dividend hikes.

The sector is rapidly shifting toward profit-oriented management.

Brother emerged as the top performer this period.
Its operating profit surged 15% year-on-year to 77.9 billion yen, outperforming its rivals.
Revenue also led the sector, growing +5.3% to 893.5 billion yen.

In contrast, JVCKenwood faced the toughest challenges.
Its revenue dropped -3.6% to 356.9 billion yen, while operating profit slid -5.7% to 20.5 billion yen.

The divergent outcomes stem from strategic focus.
Brother successfully capitalized on the recovery in industrial machinery demand.
Conversely, JVCKenwood suffered from parts shortages in its wireless systems business.

The competitors are pursuing distinct strategies to maximize their core strengths.

Brother divested its JOYSOUND karaoke business, concentrating resources on its highly profitable industrial equipment and printing segments.

Casio implemented a "dual-axis brand growth strategy" in its timepiece business.
By pairing high-value G-SHOCK models with entry-level standards, it expanded profitability and drove net profit up 126% to 18.2 billion yen.

Meanwhile, JVCKenwood is expediting structural reforms amid external headwinds, maintaining shareholder focus by raising its dividend to 18 yen and announcing a share buyback of approximately 8 billion yen.

Despite strong performances, common headwinds threaten the sector:

• Procurement risks for parts and raw materials: The component shortages that hampered JVCKenwood remain a threat to competitors.
• Export regulations and tariffs: Geopolitical factors, such as US tariffs on China, disrupt global sales.
• Exchange rate volatility: Current strong earnings are supported by the weak yen, making a turn toward a stronger currency a major threat.

This period witnessed a significant shift in profitability rankings.

Casio saw its operating margin jump to 8.4% from 5.4% in the previous year, nearly matching the 8.7% margin of Brother.
JVCKenwood fell to third place with a margin of 5.8%.
The industry trend has clearly shifted away from diversification and toward focusing on lucrative core businesses.

For those targeting this industry, it is essential to identify each firm's current cash cows. The traditional image of these companies as simple "home appliance makers" no longer applies.

Today, the main drivers are BtoB industrial machinery and brands with unique, specialized value. For individuals looking to build global careers, this sector remains an ideal arena, as companies boast high ratios of overseas sales and possess the specialized tools to compete globally.