Mitsubishi Electric (6503): Earnings model update: Focusing near-term on FA and optical semiconductor momentum

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Mitsubishi Electric (6503): Earnings model update: Focusing near-term on FA and optical semiconductor momentum

J P M O R G A N Asia Pacific Equity Research

01 July 2026

Mitsubishi Electric (6503) Overweight

6503.T, 6503 JP

Earnings model update: Focusing near-term on FA and Price (01 Jul 26):¥6,034

optical semiconductor momentum ▲Price Target (Dec-26):¥7,000 Prior (Dec-26):¥6,500

We update our earnings model to reflect 4Q results and the new medium-term plan.

We maintain our Overweight rating and raise our end-2026 price target from Japan Equity Research

¥6,500 to ¥7,000. In the short term, we see room for earnings to overshoot driven Technology - Consumer Electronics/

by strong momentum in factory automation and optical semiconductors, and in the Industrial Electronics/Precisions

medium term, we expect business opportunities (power equipment and cooling AC Junya Ayada

equipment) associated with DC800V power supplies, as well as growth (81-3) 6736 8631

opportunities in new areas of the defense business and overseas markets. junya.ayada@jpmorgan.com

Mio Shikanai

• Earnings estimates: From FY2026, management has set adjusted operating (81-3) 6736 1313

profit, which excludes gains on asset sales and other items, as a KPI. We mio.shikanai@jpmorgan.com

estimate adjusted operating profit of ¥625 billion for FY2026, ¥690 billion for JPMorgan Securities Japan Co., Ltd.

FY2027, and ¥770 billion for FY2028. Our FY2026 and FY2027 estimates are

up by ¥40-50 billion from before, mainly for automotive equipment, air

Key Changes (FYE Mar)

conditioning, factory automation systems, and optical semiconductors (we

Prev Cur Δ

introduce FY2028 estimates). For FY2026, we expect an overshoot of the ¥590 Adj. EPS - 27E (¥) 235.07 254.00 8.1%