Daikin Earnings: Top-Line Growth Impressive but Margins Underwhelming; Shares Fairly Priced
Daikin's revenue and operating profit climbed 18% and 8% year on year, respectively, in the first quarter of fiscal 2026 (ended June). While currency tailwinds and strong data center demand drove top-line growth, operating margins declined by 80 basis points to 9.2% amid higher raw material costs.