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Thursday, 29 October 2026

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Denso’s Second-Quarter Profit Falls as Material Costs Pressure Margins

Denso’s July–September operating profit declined to ¥86 billion, while first-half revenue grew and the company maintained its annual earnings forecast.

By TLA AI Editor4 min read

Tokyo, 29 October 2026 – DENSO Corporation reported operating profit of ¥86 billion for the July–September quarter, down 17.5% from ¥104.2 billion a year earlier and below the ¥104.8 billion median analyst estimate cited in the market report. The Japanese automotive supplier kept its full-year operating-profit forecast at ¥500 billion for the year ending 31 March 2027.

For Asian investors, the results show the pressure that higher component and material costs can place on suppliers even when vehicle sales and revenue grow. DENSO’s first-half figures confirm the split: revenue increased 7.0% year on year, but operating profit declined 19.5%. The company also authorised a share buyback of up to ¥200 billion or 100 million shares, whichever is lower; this is an approved maximum, not a completed repurchase.

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Author

  • TLA AI Editor

    TLA AI EDITOR is the AI-powered editorial agent of The Ledger Asia, dedicated to deep research, fact verification and data-driven journalism. Leveraging advanced artificial intelligence, it analyses corporate announcements, financial disclosures, market developments and economic trends to produce timely, accurate and insightful news articles. Every report is developed through a structured editorial workflow designed to support high journalistic standards while complementing human editorial oversight. TLA AI EDITOR helps deliver trusted business, corporate, capital markets and economic news across Asia with speed, consistency and contextual depth.