Mitsubishi Electric Corporation (TSE: 6503), the Marunouchi-headquartered industrial-systems group spanning factory automation, automotive, building systems, defense and home appliances, reported FY3/2026 consolidated IFRS results showing broad-based growth and a record bottom line. Revenue rose 6.8% year-on-year to ¥5,894,747 million, operating profit advanced 10.5% to ¥433,095 million, profit before tax climbed 20.3% to ¥526,077 million, and profit attributable to owners of the parent surged 25.8% to ¥407,758 million. Basic earnings per share advanced to ¥198.31 from ¥155.70. Total comprehensive income more than doubled to ¥783,381 million (+107.7%), reflecting a far more constructive valuation environment than the prior-year ¥377,112 million.
The operating margin held at 7.3%, while ROE attributable to owners stepped up to 9.7% from 8.4%. Equity-method investment income nearly doubled to ¥69,631 million, with the company also booking treasury-share retirement on the back of an active buyback posture during the year.
Portfolio reshaping: Nozomi in, IT-services subsidiaries out
The most strategically significant disclosures of the period concern scope changes. Mitsubishi Electric consolidated Nozomi Networks, Inc., a U.S.-headquartered specialist in industrial-control-systems (ICS) and operational-technology (OT) cybersecurity — an acquisition that directly strengthens the group's factory-automation security stack as customers integrate IoT, AI and remote-management layers across plant floors. It also folded the Middle East / Africa / CIS organization under a new entity, Mitsubishi Electric Middle East, Africa and CIS Co., Ltd. (formerly AG Melco Elevator). Conversely, the group divested Mitsubishi Electric Information Systems Corporation and Mitsubishi Electric IT Solutions Corporation from the consolidation perimeter, signaling a narrowing of generalist IT-services exposure in favor of higher-margin embedded and OT-cyber positions.
Balance sheet and cash flow
Total assets grew to ¥7,357,512 million from ¥6,375,680 million, while total equity expanded to ¥4,629,993 million. Equity attributable to owners reached ¥4,484,266 million, lifting the owner equity ratio to 60.9% (vs. 61.9%) on a larger asset base. Per-share equity attributable to owners climbed to ¥2,191.26 from ¥1,903.11. Operating cash flow rose to ¥575,993 million from ¥455,905 million; investing activities used ¥344,407 million; financing activities used ¥304,817 million. Cash and cash equivalents closed at ¥731,609 million.
Dividend and capital return
The full-year FY3/2026 dividend was raised to ¥55.00 from ¥50.00, comprising a ¥25.00 interim and a planned ¥30.00 year-end (subject to confirmation at the May board meeting). Total cash dividends paid totaled ¥112,734 million, with a consolidated payout ratio of 27.7% and a DOE of 2.7%. The company has not yet disclosed FY3/2027 dividend guidance.
FY3/2027 guidance: structural step-up in adjusted OP
For FY3/2027 management guides revenue of ¥6,200,000 million (+5.2%), adjusted operating profit of ¥590,000 million (+17.7%), profit before tax of ¥640,000 million (+21.7%) and profit attributable to owners of ¥475,000 million (+16.5%), with basic EPS guided to ¥231.01. The "adjusted operating profit" line — defined as operating profit excluding business and asset disposal gains/losses, impairments and other one-off items — is becoming the company's principal forward-looking earnings KPI and is signaled to expand materially even on a more modest top-line trajectory.
| Metric | FY3/2026 | FY3/2025 | YoY |
|---|---|---|---|
| Revenue (¥ million) | 5,894,747 | 5,521,711 | +6.8% |
| Operating profit (¥ million) | 433,095 | 391,850 | +10.5% |
| Profit before tax (¥ million) | 526,077 | 437,265 | +20.3% |
| Profit attributable to owners (¥ million) | 407,758 | 324,084 | +25.8% |
| Basic EPS (¥) | 198.31 | 155.70 | +27.4% |
| Operating margin | 7.3% | 7.1% | +0.2pp |
| ROE (owners) | 9.7% | 8.4% | +1.3pp |
| Total equity (¥ million) | 4,629,993 | 4,076,366 | +13.6% |
| Annual dividend (¥) | 55.00 | 50.00 | +10.0% |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.