TDK Corp. Shares Surge After Company Raises Earnings Forecasts

By Jason Chau

Shares of TDK Corp. surged after the Japanese electronics-component maker reported higher profit for the first three quarters of the fiscal year and raised its earnings forecasts.

TDK shares rose as much as over 12% in Tokyo on Tuesday morning, closing the session more than 11% higher and marking its largest one-day percentage gain since last April. The benchmark Nikkei Stock Average ended the day 3.9% higher.

The rally came after TDK said Monday that nine-month net profit and net sales rose 13% and 11%, respectively.

The company also raised its fiscal-year earnings forecasts, guiding for net profit and net sales to rise 14% and 12%, respectively. It also revised up its dividend projection to 34 yen from Y32.

The Tokyo-based company said strong sales of batteries and sensors due to new smartphone launches, robust demand for hard disk drives due to the ongoing data-center boom and a weaker yen drove the revision in forecasts.

"I believe TDK's share surge today is due to its solid December quarter results, upward revision of fiscal 2025 operating income guidance, and strong HDD magnetic head growth outlook," said Morningstar equity research director Kazunori Ito, adding that management expects HDD shipment growth of around 30% in the next fiscal year, supported by the data-center buildout.

Many Japanese producers of specialized electrical parts, including TDK, have benefited from surging artificial-intelligence demand, given their key position in the global AI supply chain.

"It didn't take much to move the needle on [TDK]," said Andrew Jackson, head of Japan equity strategy at Ortus Advisors.

"There was too much negativity priced in surrounding the impact from higher memory prices on consumer products... as well as the impact from China's rare earths export ban to Japan for their magnets business," Jackson added.

Write to Jason Chau at jason.chau@wsj.com

(END) Dow Jones Newswires

February 03, 2026 04:10 ET (09:10 GMT)