Murata Manufacturing stock: Profit jumps as AI demand lifts outlook

Murata Manufacturing lifted its outlook for the fiscal year ending March 31, 2027, after reporting strong first-half growth on October 30. The company said expanding AI-related demand and higher data-center investment supported sales of electronic components.

In its financial results release, Murata reported revenue of 1,090,764 million yen for the six months ended September 30, up 20.8 percent from a year earlier. Operating profit rose 48.9 percent to 245,907 million yen, while profit attributable to owners of the parent increased 40.6 percent to 186,152 million yen.

Data centers lead component growth

The Components segment was the main growth engine. Revenue rose 30.9 percent to 740,509 million yen, with multilayer ceramic capacitors contributing to higher sales across data centers, distributors and mobility applications. Capacitor revenue increased 33.1 percent to 605,583 million yen, while inductors and electromagnetic interference filters gained 21.8 percent to 134,926 million yen.

Demand was particularly strong in the Computers application category, where revenue advanced 61.2 percent to 235,110 million yen. Murata attributed the increase to multilayer ceramic capacitors, power-supply modules and lithium-ion batteries used in data centers. Mobility revenue rose 14.6 percent, while Communication revenue increased 5.6 percent.

The company said operating profit benefited from higher production utilization as output increased and from the weaker yen. These gains more than offset higher fixed costs and lower product selling prices. The average exchange rate moved from 146.04 yen per US dollar in the prior-year period to 159.37 yen.

Forecast upgrade raises expectations

Murata now expects fiscal 2027 revenue of 2,260,000 million yen, compared with its previous forecast of 2,110,000 million yen. The revised operating profit forecast is 520,000 million yen, up from 430,000 million yen, while profit attributable to owners of the parent is forecast at 396,000 million yen, compared with 338,000 million yen previously.

Management linked the upgrade to further data-center demand, higher production utilization and an improved product mix. The company forecasts annual dividends of 70 yen per share for the fiscal year, including an interim payment of 35 yen scheduled to begin on November 30, 2026.

Investor attention is also focused on the balance between AI-related growth and pressure in other businesses. High-frequency devices and communications modules declined 2.1 percent in the first half, mainly because of weaker smartphone and PC-related revenue. That contrast leaves the pace of data-center demand and the conversion of capacity investment into margins as key issues for the second half.

Citi lowers target but keeps Buy

Investing.com reported on November 6 that Citi reduced its price target for Murata from 11,000 yen to 9,000 yen while maintaining a Buy rating. The firm raised its risk premium to 5.0 percent from 3.3 percent, but also increased its operating profit forecasts on expectations for higher-margin products.

Citi expects higher-priced products for AI data centers to represent a larger share of sales from the fiscal year ending March 2028. It also cited the book-to-bill ratio, order backlog and average selling price trends when assessing downside risk.

Murata Manufacturing stock traded at 27.81 euros on Lang & Schwarz at 09:35 CET on Monday, November 9, 2026. Investors can follow the real-time quote of Murata Manufacturing stock.

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Murata Manufacturing at a glance

• Company: Murata Manufacturing Co., Ltd.
• ISIN: JP3914400001
• Tokyo Stock Exchange code: 6981
• Lang & Schwarz quote: 27.81 euros at 09:35 CET on November 9, 2026
• Fiscal year: Ending March 31, 2027
• Interim dividend: 35 yen per share, scheduled for November 30, 2026