With first-quarter earnings announcements for the fiscal year ending March 2027 largely complete, strong results stood out against a backdrop of AI investment and yen depreciation. Across five stocks, mainly in the electrical equipment, services, information and communications, and retail sectors, companies reported revenue and profit growth, along with upward revisions to their full-year forecasts.
First-quarter earnings announcements for the fiscal year ending March 2027 have largely run their course, and results are reported to have expanded across a broad range of sectors, driven by increased AI investment and the effects of yen depreciation. Consolidated net income rose 68% year on year, while revenue increased 14%, indicating strong performance across sectors.
Among the stocks that attracted attention in the first quarter, Ivden significantly raised its full-year plan on growing demand for AI servers. Advantest raised its full-year forecast amid a sharp increase in demand for AI semiconductor verification equipment for inference applications, while Recruit raised its full-year profit forecast on growth in its HR tech businesses, including Indeed. Capcom reported a high first-quarter progress rate, helped by the success of the new IP PRAGMATA and other factors.
Seiko Group raised its full-year profit forecast on strong sales of luxury watches and electronic devices for AI applications. The announcement of a stock split by Ivden also drew attention, and overall, expanding demand related to AI and semiconductor-related equipment has become a market focus.
Against the backdrop of trends in the Nikkei Average's PER and broad-based earnings growth, full-year outlooks for the individual stocks are expected to be revised upward. Growth drivers cited include expanding demand for AI data centers and strong activity in the semiconductor inspection and tester markets.