Mitsubishi Electric (TYO:6503) posted growth in its profit and revenue for the first quarter of the 2027 fiscal year as demand for artificial intelligence continue to expand.
Net profit attributable shareholders for the three months ending June 30 rose 21% to 109.8 billion Japanese yen from 90.9 billion yen a year earlier, the electronics company said in a Friday earnings result disclosure.
Earnings per share rose year on year to 53.66 yen from 43.89 yen.
Revenue for the period climbed 14% to 1.497 trillion yen from 1.313 trillion yen in the previous year, with the Industry & Mobility and Life segments leading the revenue increase.
Operating profit increased 25% to 139.5 billion yen from the year-ago operating profit of almost 112 billion yen as the market continue to raise its demand for chips and AI-related technology. There was also a robust demand for residential air conditioning systems in Japan and in overseas, especially Europe and India as global temperatures continues to rise.
Mitsubishi Electric predicted that the growing demand for AI and semiconductors will raise the attributable profit for the entire fiscal year by 21% year on year to 495 billion yen, with earnings per share of 241.87 yen. Revenue is expected to increase 6.4% to 6.270 trillion yen.
The company did not declare any dividend for the period, but predicted an interim dividend of 30 yen per share for the 2027 fiscal year.
Mitsubishi Electric's shares jumped 11% at the close.
