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Panasonic's Quarterly Profit Surges 89%, Lifts Full-Year Guidance on AI-Related Demand

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Panasonic's Quarterly Profit Surges 89%, Lifts Full-Year Guidance on AI-Related Demand

Panasonic Holdings (TYO:6752) reported an 89.2% year-over-year increase in net profit attributable to shareholders in the fiscal first quarter, which the company attributed to higher sales of AI infrastructure-related businesses.

Net profit attributable to shareholders jumped to 135.2 billion yen from 71.5 billion yen a year earlier, according to a bourse filing on Thursday.

Earnings per share in the quarter ended June 30 climbed to 57.88 yen from 30.60 yen a year earlier.

The Japanese electronics manufacturer posted sales of 2.019 trillion yen, up 6.4% from 1.897 trillion yen a year ago.

By segment, Energy registered the largest profit contribution at 40.9 billion yen, up from 31.9 billion yen a year earlier. The segment produces vehicle-mounted batteries, industrial batteries, and dry batteries.

In a separate presentation, Panasonic noted that it recorded the highest first-quarter profit due to strong demand for AI products and adjacent businesses benefiting from rising data center demand.

To reflect growing AI-related demand and spillover effects, Panasonic raised its earnings forecast for the full fiscal year ending March 31, 2027. It now expects an attributable profit of 450 billion yen, or 192.73 yen per share, up from the previous forecast of 420 billion yen.

The latest forecast reflects a 137% increase from a year earlier.

Full-year net sales are expected to fall 3.1% year over year to 7.800 trillion yen, softer than the previously anticipated 5.6% drop.

The company expects to pay 54 yen in annual dividend for fiscal year 2027, up from 40 yen paid in fiscal 2026. It plans to distribute 27 yen per share in dividends at the end of the second quarter.

Panasonic's shares closed up 2% in Tokyo trade on Thursday.

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