Key Facts
• July 30, Murata Manufacturing announced Q2 operating profit fell 7.2% to ¥61.6 billion.
• AI server component demand remained strong, but smartphone-related demand declined.
• Yen appreciated significantly, with Q2 exchange rate at ¥144.60/USD, compared to ¥155.89/USD last year.
• Excluding yen appreciation, operating profit would have increased by 12%.
• Q2 orders rose to ¥431.1 billion, up year-on-year and quarter-on-quarter.
• FY2026 operating profit forecast remains at ¥220 billion, a 21.3% year-on-year decline.
• Analyst consensus forecast by IBES was ¥266.1 billion, higher than Murata’s projection.
• U.S. tariffs and shifting consumer trends are expected to concentrate demand in the first half of the fiscal year.
Summary
Murata Manufacturing reported a 7.2% year-on-year decline in Q2 operating profit to ¥61.6 billion, citing yen appreciation and product price drops as key factors. While AI server component demand remained robust, smartphone-related demand for high-frequency modules and resin multilayer substrates weakened. The yen’s appreciation, with the Q2 exchange rate at ¥144.60/USD compared to ¥155.89/USD last year, significantly impacted profits. Excluding currency effects, operating profit would have risen by 12%. Orders for the quarter increased to ¥431.1 billion, reflecting strong demand. The company maintained its FY2026 operating profit forecast at ¥220 billion, a 21.3% decline from the previous year, falling short of the ¥266.1 billion analyst consensus. U.S. tariffs and changing consumer behavior are expected to concentrate demand in the fiscal year’s first half.
