Murata Manufacturing stock: AI demand lifts outlook and capacity plan

Murata Manufacturing reported record first-half revenue and operating profit for the period ended September 30, 2026, and raised its full-year forecast on Friday, October 30. The company's earnings presentation said demand from data centers and mobility helped offset weaker revenue in some smartphone-related businesses.

Murata Manufacturing stock traded at 35.91 euros on Lang & Schwarz at 09:06 CET on Monday, November 2, 2026.

Record first-half performance

Revenue for the first six months of fiscal 2026 rose 20.8 percent year on year to 1.0908 trillion yen. Operating profit increased 48.9 percent to 245.9 billion yen, while profit attributable to owners of the parent rose 40.6 percent to 186.2 billion yen.

The component business led the expansion. Capacitor revenue increased 33.1 percent to 605.6 billion yen, with multilayer ceramic capacitors benefiting from demand across data centers, distributors and mobility. Revenue from computer-related applications rose 61.2 percent to 235.1 billion yen, and data-center-related revenue increased 101.8 percent to 164.9 billion yen.

Murata attributed the operating-profit increase mainly to higher production output, improved capacity utilization and the weaker yen. These factors outweighed higher fixed costs and lower product prices. The presentation identified net one-time items of 2.0 billion yen in the first half, including a 4.0 billion yen benefit related to U.S. tariffs and a 2.0 billion yen loss from a canceled power-module project.

Higher forecast and investment

Murata raised its fiscal-year revenue forecast by 150 billion yen, or 7.1 percent, to 2.26 trillion yen. The operating-profit forecast increased by 90 billion yen, or 20.9 percent, to 520 billion yen, while projected profit attributable to owners rose by 58 billion yen to 396 billion yen. The company expects both revenue and operating profit to reach record highs.

The revised outlook reflects stronger demand for data-center components, particularly for AI servers, as well as higher planned production. Murata also lifted fiscal-year capital expenditures by 15 billion yen to 270 billion yen, mainly for device and module products. The annual dividend forecast remains unchanged, and the planned 150 billion yen share repurchase is set to proceed.

For investors, the forecast upgrade increases the importance of converting strong orders into sustainable production and margins. Murata's presentation said total orders reached a record high, while also noting long lead-time orders and the possibility that some demand had been brought forward. That creates an execution issue alongside the positive demand trend.

MLCC capacity plan

Murata plans to invest approximately 1 trillion yen over fiscal 2026 through fiscal 2030 to expand its global multilayer ceramic capacitor production base. The program allocates approximately 350 billion yen to buildings and 650 billion yen to production equipment. MLCC sales are expected to more than double from fiscal 2025 levels by fiscal 2030.

The company plans new production buildings in Japan and additional capacity at overseas sites. The program is aimed at demand from AI data centers, mobility, edge devices and other applications. The investment will ramp up from fiscal 2028, making execution, utilization and returns on capital key issues beyond the current earnings upgrade.

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Murata's next scheduled investor event is its IR Day on Monday, November 30, 2026, while the next quarterly results are expected in early February 2027. More news and analyses on Murata Manufacturing stock will follow developments in demand, capacity expansion and profitability.