Japanese companies outside finance and insurance posted record earnings and investment in fiscal 2025, while the share of value added flowing to workers fell to 63.0%, its lowest level since fiscal 1973. Operating profit rose 8.8% year-on-year to ¥124.8313 trillion, revenue increased 1.6% to ¥1,720.256 trillion and capital investment grew 4.3% to ¥57.8999 trillion. Personnel expenses, including salaries, bonuses and welfare benefits, climbed 2.6% to ¥235.2869 trillion, but failed to keep pace with profit growth. Profit gains were led by information and communication electronics and electrical machinery, supported by demand for AI (artificial intelligence) and data centers, while food and beverage services, construction and food products also recorded gains. Chemicals and production machinery drove investment, alongside semiconductor and pharmaceutical capacity expansion. In the April–June 2026 quarter, capital investment rose 1.6% year-on-year to ¥13.025 trillion and 1.5% from the previous quarter on a seasonally adjusted basis. Revenue increased 5.9% to ¥393.9377 trillion and operating profit surged 24.6% to ¥44.6668 trillion. Manufacturing investment fell 3.7%, while non-manufacturing investment rose 4.7%. The data will feed into Japan’s second preliminary GDP (gross domestic product) estimate for the quarter, due from the Cabinet Office on September 8. Whether corporate profits translate into higher wages and personal consumption remains a key test for Japan’s economy.