Higher demand for AI server and networking semiconductor materials drove the revision, though the new outlook still trails the ¥134.5 billion analyst consensus compiled by IBES.
Ajinomoto Co. Inc. raised its consolidated net profit forecast under IFRS (global accounting standards) for the fiscal year ending March 2027 to ¥123.5 billion from ¥120 billion, even though the new target would still mark an 8.3% decline from the previous year. The upgrade was driven by stronger-than-expected sales of electronic materials used in high-performance semiconductor substrates for AI, servers and networking equipment. The company now expects revenue of ¥1.73 trillion, up 9% from the prior year, and business profit (earnings from core operations) of ¥202 billion, up 12%, reflecting upward revisions of ¥9 billion and ¥5 billion respectively. Net profit is still expected to fall because the previous fiscal year included a gain from the sale of the company headquarters building, but the decline is now seen as less severe than first projected. April-June 2026 results were also firm, with revenue rising 13% year-on-year to ¥412.1 billion and net profit increasing 13% to a record first-quarter high of ¥36.4 billion. Strength in semiconductor-related materials and steady demand in seasonings and food products supported earnings, while frozen foods recovery remained slow after voluntary product recalls. Reuters said the revised full-year profit outlook remained below the ¥134.5 billion average estimate from 15 analysts surveyed by IBES, leaving investors focused on whether growth in electronic materials and normalization in frozen foods can advance together in coming quarters.