Domestic companies reported double-digit revenue and profit growth overall in the April-June 2026 quarter, making a solid start led by manufacturers. Electrical Equipment made the largest contribution, which is seen as reflecting favorable conditions for AI and semiconductor-related stocks.
April-June results from companies listed on the TSE with fiscal years ending in March showed sales up 12.7% year on year, operating profit up 44.9%, ordinary profit up 53.8% and net profit up 73.7%, resulting in double-digit revenue and profit growth overall. Manufacturers remained strong, with growth rates of 14.6%, 75.7%, 91.3% and 97.7%, respectively, while non-manufacturers also achieved revenue and profit growth of 8.8%, 1.5%, 14.2% and 43.3%, respectively.
Electrical Equipment made the largest positive contribution to earnings, with AI and semiconductor-related stocks considered a major factor. Transport Equipment, Oil and Coal, and Nonferrous Metals also made substantial contributions, while negative contributions were seen from Electric Power and Gas, Air Transportation, Transportation and Warehousing, and Rubber Products.
Following the results, the revision index for TOPIX constituents rose as a market reaction. The increase in the proportion of companies raising their earnings forecasts was cited as a factor that could have a positive impact on share prices.
The market-implied EPS outlook was more than 13% higher 12 months forward, while the corresponding EPS growth rate for Electrical Equipment was above 30%, a high level. This suggests that favorable conditions for AI and semiconductor-related stocks are expected to continue.