Murata Manufacturing announced its results for the first quarter of the fiscal year ending March 2027, reporting record-high net sales of ¥502.3 billion and operating profit of ¥98.5 billion, and revised its forecast upward. The share price is expected to remain under pressure.
Murata Manufacturing is reported to hold a top-tier global share in multilayer ceramic capacitors (MLCCs), with expanding demand from data centers providing a tailwind for its results. MLCCs are widely used in smartphones, notebook PCs and automobiles, and are characterized by high capacitance and high-frequency performance.
In the first-quarter results announced on 31 July, net sales came to ¥502.3 billion, up 20.7% year on year, while operating profit was ¥98.5 billion, up 59.8% year on year. The company expects to set a new record for full-year net income. Expanding data center demand and the weaker yen lifted earnings, and net income was revised upward from the previous forecast to ¥338.0 billion.
The share price closed at the daily limit on the day the results were announced, but has since remained capped, entering a correction phase from July after peaking at ¥12,895 in June. Some observers believe supply and demand factors have had a significant impact.
While continued investment in data centers could support results over the medium to long term, it has been pointed out that supply and demand for the stock as a momentum name could cause sharp share price swings. Kubota (窪田) is said to expect the share price to move up and down depending on data center investment plans.