Most Japanese companies’ April–June results announced from late July through mid-August exceeded expectations, with upward earnings revisions under way. They are expected to post record profits through FY2027.
The positive-surprise ratio for the April–June results reached a high 73%. In response, analysts have been moving to revise their earnings forecasts upward.
A tally by Daiwa Securities analysts covering the results of approximately 200 major listed companies found that FY2026 ordinary profit had been revised up 6.2% from the previous fiscal year, with a 23.2% year-on-year increase expected. FY2027 is also expected to be revised up 4.7%, with record profits forecast for the seventh consecutive fiscal year.
The revision index reached 37.4% in August, its highest level since the start of Abenomics. This reportedly pushed TOPIX up to 4197.20 points in August, a record high.