At major wire manufacturer Fujikura, disappointment over its full-year forecast in May and subsequent upward revisions have shaken the market, sending the share price sharply up and down. Analysts have also reported that demand from AI data centers is supporting the company’s core business.
Fujikura is an integrated wire and electrical equipment manufacturer whose businesses center on optical fiber cables and fusion splicers. In the fiscal year ending March 2026, its Information and Communications business generated operating profit of ¥152.7 billion, accounting for most of the company’s total profit. Rising demand for optical fiber as data centers expand is forming a core source of earnings.
Fujikura’s optical fiber products support higher fiber counts, smaller diameters and more compact designs, which is considered a strength in enabling high-density deployment in data centers. The company also manufactures fusion splicers and related fiber products in-house as peripheral technologies, allowing it to provide total solutions, which is regarded as one of its distinguishing features.
The share price plunged from a May high of ¥7,933 to ¥3,665 in July, then remained volatile in the ¥5,000 range. Following disappointment over the forecast for the fiscal year ending March 2027 and the medium-term plan announced on 14 and 19 May, the forecast was raised on 18 June and 7 August, prompting a strong market reaction.
With price movements continuing to be driven by surprises from upward revisions, attention is focused on the outlook for future results and progress under the medium-term plan. This article focuses on these developments.