Companies reporting second-quarter results have generally posted higher revenue and ordinary profit, while retailers have made notable revisions. Overseas demand for manufacturers remains firm, with Saizeriya's price increases and strong results from Fast Retailing and Ryohin Keikaku standing out.
Companies reporting second-quarter results through 15 October 2026 posted cumulative first-half revenue growth of 9% year on year and ordinary profit growth of 8% across all industries. In the second quarter, revenue rose 11%, while ordinary profit fell 5%. The Kumamoto earthquake and adverse weather were cited as factors behind lower profits at major supermarket operators, and profit trends diverged across segments.
Among retailers and other companies, 24 raised their full-year forecasts and 20 lowered them, pointing to a notable prevalence of downward revisions. Although passing higher costs on to customers tends to affect customer traffic, Saizeriya has announced price increases, and some believe the trend itself is unlikely to stop. Meanwhile, Fast Retailing and Ryohin Keikaku, both benefiting from solid overseas sales, posted strong results.
In manufacturing, results from robotics maker Yaskawa Electric, semiconductor equipment maker RORZE and marine radar maker Furuno Electric remained firm. Attention is also focused on the increase in domestic-demand M&A and efforts to respond to TOPIX reforms. M&A announcements are expected to increase in domestic-demand sectors such as apparel, cram schools, housing and regional banks. The outlook for companies with March year-ends is expected to remain firm, led by manufacturing, business-to-business activity and financials.
Some observers have noted that market reactions tend to be reflected in share prices in line with earnings beats and misses and revisions to companies' forecasts. Overall, stronger investor relations following earnings announcements and trends in shareholder returns are cited as key areas of focus.