The view is spreading that the AI boom offset headwinds facing the global economy, and Japanese companies' September 2026 interim results were generally solid. More companies are expected to post profit growth on the back of AI demand, while reports say that developments overseas also warrant attention.
Assessments indicate that although the global economy was affected this year by oil-market turmoil and high-tariff policies, the artificial intelligence (AI) boom became a driving force behind improved earnings at Japanese companies. Interim results for September 2026 at companies listed on the Tokyo Stock Exchange are reaching their peak, and aggregate net income for TOPIX constituent companies excluding financials is expected to increase for the first time in 3 years.
Semiconductor major Kioxia Holdings is expected to post record-high revenue and net income on strong memory demand, while results at electrical and electronics companies involved in data-center equipment are also generally strong. Panasonic Holdings' net income is expected to nearly double and Mitsubishi Electric's to rise by about 60%, while AI-related demand is driving earnings at companies including Hitachi and NEC.
At the same time, caution is warranted regarding the AI industry's future direction. Data centers' high power consumption could lead to higher electricity rates, and concerns have also been raised about their environmental impact and employment. As moves opposing data centers gain momentum ahead of the US midterm elections, tighter regulation could also raise concerns about slowing demand.