Japan Equity Strategy Jan-Mar earnings snapshot (70% reported): Earnings growth guidance continues, led by AI semiconductors, banks

Research evidence excerpt

Japan Equity Strategy Jan-Mar earnings snapshot (70% reported): Earnings growth guidance continues, led by AI semiconductors, banks

J P M O R G A N Global Markets Strategy

14 May 2026

Japan Equity Strategy

Jan-Mar earnings snapshot (70% reported): Earnings

growth guidance continues, led by AI semiconductors,

banks

Jan–Mar results for TSE Prime companies that have reported so far (70% of the Equity Strategy

ACtotal) show strong earnings progress, with both sales and profit rising, including a Rie Nishihara

double-digit % YoY increase in net profit. Electronics/precision and nonferrous (81-3) 6736-8629

metals led the profit growth, with exporter sectors such as trading companies and rie.nishihara@jpmorgan.com

domestic-demand sectors including construction materials, food, and transport JPMorgan Securities Japan Co., Ltd.

also contributing positively. More than 60% of companies beat Bloomberg Yong Guo, CFA

consensus estimates for both sales and net profit, surpassing the past two years. (81-3) 6736-8623

yong.guo@jpmorgan.com

Full-year FY2025 revenue and profits results were also up, with net profit growth JPMorgan Securities Japan Co., Ltd.

widening +4.5% YoY. Accounting for the US tariff impact (which we estimate

Mansi Das

trimmed aggregate net profit by 6ppts), we think underlying profit growth (91) 2261 573343

exceeded 10%. FY2026 guidance projects sales and profit growth despite high oil mansi.das@jpmchase.com

prices, with net profit to rise 11% YoY, well above corporate forecasts in the March J.P. Morgan India Private Limited

Tankan survey (net profit for large enterprises/all industries –2.5% YoY) and the

past five-year average (–1.5%). Strong guidance in AI semiconductors

(electronics/precision firms forecast a 60% YoY increase in net profit) and banks