Most companies have now reported their April–June 2026 results, with aggregate sales for the Russell Nomura Large Cap rising 13.2% year on year and operating profit increasing 43.8%, both significantly exceeding market expectations. At the individual-company level, many companies exceeded market expectations for both sales and operating profit, apparently helped by the broadening of AI-related demand.
Most companies have now reported their April–June 2026 results, with sales for the Russell Nomura Large Cap excluding financials up 13.2% year on year and operating profit up 43.8%, marking substantial profit growth. The market consensus beforehand had called for sales growth of 8.1% and operating profit growth of 30.2%, so both figures came in well above expectations. At the individual-company level, three out of four companies exceeded market expectations for both sales and operating profit, putting the proportion in the 70% range.
By sector, upside was particularly pronounced in manufacturing areas such as steel and nonferrous metals, machinery, and electrical equipment and precision instruments, apparently reflecting the broadening of AI-related demand. In non-manufacturing sectors, including construction and transportation, companies had been concerned about the impact of cost increases associated with higher crude oil prices. However, demand did not decline as much as expected, and the smooth progress of price pass-through was also cited as a contributing factor.
Turning to developments related to the impact of foreign exchange rates, 18.1% of TSE Prime-listed companies had revised their full-year outlooks as of fiscal 2026. This was notably higher than the 14.2% average for the same period in fiscal 2021–25. Following the April–June results, more companies are taking steps to align their full-year outlooks with their results, while others are indicating the possibility of exceeding their full-year outlooks.