Three major securities firms raised their forecasts for ordinary profit in FY2026. The revisions were attributed to a sharp expansion in semiconductor demand and progress on price increases in steel and nonferrous metals.
Three major securities firms raised their forecasts for ordinary profit at major listed companies in FY2026 from their previous estimates as of June. The coverage universe comprises approximately 200 companies, with Nomura Securities, Daiwa Securities, and SMBC Nikko Securities each publishing revised forecasts.
Nomura Securities significantly raised its projected profit growth rates, mainly in the automotive, electrical equipment, and precision instruments sectors. The outlook for electrical equipment and precision instruments stocks, including Kioxia Holdings Corporation, was revised upward particularly sharply. Nomura expects semiconductor demand to surge as generative AI becomes more widespread.
Daiwa Securities raised its outlook for steel and nonferrous metals, revising its earnings forecast for the current fiscal year upward on expectations of higher-than-expected selling prices. Among nonmanufacturers, retail-related companies are also expected to make a greater contribution to earnings.
In addition to automotive, steel, and nonferrous metals, SMBC Nikko Securities improved its ordinary-profit forecasts for some companies, citing the impact of yen depreciation. It has set an exchange-rate range of approximately ¥156.1 to ¥160 per U.S. dollar.