Murata Manufacturing Raises Forecasts on Data Center Demand

Murata Manufacturing significantly raised its full-year revenue and profit forecasts, signaling robust demand in key sectors like data centers and mobility. The company now projects full-year revenue of ¥2.26 trillion, a 7.1% increase from its prior guidance, and operating profit of ¥520 billion, up 20.9% from its previous forecast.

These upward revisions reflect the strong performance reported for the first half of the fiscal year, with Murata posting record interim results. First-half revenue increased 20.8% year-over-year to ¥1.09 trillion, while operating profit surged 48.9% to ¥245.9 billion. This growth was primarily fueled by increased demand for capacitors, particularly within the expanding data center market, alongside strength in EMI filters and power modules. Despite headwinds from fixed cost increases and product price reductions, improved operational efficiency and a weaker yen contributed to the profit gains.

Murata is responding to sustained demand by increasing its capital expenditure, planning to invest approximately ¥2.7 trillion over the next five years, a ¥150 billion increase from previous plans. This investment is focused on expanding MLCC (multilayer ceramic capacitor) production capacity to meet anticipated demand driven by artificial intelligence and related technologies. The company is also allocating ¥1.5 billion to share buybacks.

Looking ahead, Murata anticipates continued growth in its key markets. The company's forecast demonstrates confidence in its ability to capitalize on the ongoing expansion of data infrastructure and the increasing electrification of the automotive industry. The updated guidance reflects a positive trajectory, driven by strong demand and strategic investments in production capacity.