Japan earnings spotlight shifts to record-profit forecasts ahead of Aug. 14 finale

Post-close earnings announcements on Aug. 13 drove a mixed reaction in Tokyo trading on Aug. 14, with Nexon, Appier Group, Trial Holdings and SoftBank Group opening with buy indications, while Trend Micro and Sanken Electric opened under selling pressure. Nexon projected fiscal 2026 January-September net profit of ¥105.1 billion to ¥112.5 billion, up 29.4% to 38.6% year-on-year, after first-half net profit doubled to ¥86.9 billion. It also raised its annual dividend forecast to ¥475 from ¥60, including a ¥415 special dividend with a Sept. 30 record date, and said it will cancel 13,238,900 treasury shares, or 1.7% of shares outstanding, effective Aug. 31. Appier raised its fiscal 2026 operating profit forecast to ¥5.03 billion from ¥4.31 billion, implying 69.1% growth and topping the ¥4.42 billion market consensus, as agentic AI adoption, higher gross margin and expense discipline supported profitability. Trial Holdings forecast fiscal 2027 operating profit of ¥39 billion, above the ¥38.7 billion market consensus, after fiscal 2026 operating profit rose 43.9% to ¥30.4 billion. Trend Micro cut its fiscal 2026 operating profit forecast to ¥44.4 billion from ¥56.4 billion as cloud-related expenses, including AI token costs, climbed faster than expected, while Sanken Electric posted a wider first-quarter operating loss. SoftBank Group was supported by a Bloomberg report saying OpenAI is on track to exceed $40 billion in annual revenue based on current performance projections. The latest results underscore a widening gap in how AI is affecting corporate earnings, boosting growth and margins at some companies while driving costs sharply higher at others.

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