TDK CORPORATION
6762・Prime Market・Electric Appliances
Business
TDK Corporation is an electronic components manufacturer established in 1935 for the industrialization of ferrite cores. It now comprises 152 consolidated subsidiaries and 6 equity-method affiliates, and operates around four core segments: Passive Components, Sensor Application Products, Magnetic Application Products, and Energy Application Products. Its main products span a wide range, including ceramic Capacitors, Inductive Devices, MEMS Sensors, HDD Heads, rechargeable batteries, and Power Supplies, with the ICT, automotive, industrial equipment, and data center markets as its primary customer base. The overseas sales ratio reaches 92.7%, and the company has built a global manufacturing and sales network centered on China and Asia.
Business Model
The company has accumulated proprietary materials technology, process technology, and product design technology as five core technologies, generating revenue by manufacturing and selling high-value-added electronic components. Energy Application Products (rechargeable batteries and power supplies) constitute the largest segment, accounting for approximately 55% of net sales, with rechargeable batteries for ICT applications centered on Amperex Technology Limited serving as the pillar of revenue. Passive Components, Sensor Application Products, and Magnetic Application Products complementarily support revenue, and the company continues developing next-generation products, investing 11.6% of net sales (¥289,668 million) in R&D expenses.
Company Strengths
The company has four segments operating in parallel—Passive Components at ¥593,201 million, Sensor Application Products at ¥224,623 million, Magnetic Application Products at ¥262,903 million, and Energy Application Products at ¥1,370,304 million—forming a structure that avoids excessive dependence on any single market. In FY2026 (ending March 2026), all segments achieved year-on-year revenue growth, with the diversification effect of the portfolio contributing to earnings stability.
Originating from the industrialization of ferrite in 1935, the company has accumulated five core technologies over 90 years: materials technology, process technology, product design technology, production technology, and evaluation/simulation technology. It has also achieved research results in advanced fields such as spintronics, including the development and demonstration of spin photodetectors and cerebellum-type analog reservoir AI chips, and received the CEATEC AWARD 2025 Innovation Award.
The Energy Application Products segment, centered on Amperex Technology Limited (acquired in 2005), recorded revenue of ¥1,370,304 million, segment profit of ¥246,682 million, and business ROA of 25.7%. The company holds a strong market position in small batteries for smartphones and notebook PCs, and in FY2026 (ending March 2026), segment assets reached ¥2,686,182 million, accounting for the majority of the company's total assets.
ENVALITH's Perspective
Performance Trend
Revenue expanded 31.7% over five fiscal years, from ¥1,902,124 million in FY2022 (ended March 2022) to ¥2,504,820 million in FY2026 (ending March 2026). Operating income increased 63.3% over the same period, from ¥166,775 million to ¥272,415 million, and the operating margin improved from 8.8% to 10.9%. In FY2026 (ending March 2026), growth accelerated with revenue up 13.6%, operating income up 21.5%, and profit attributable to owners of parent up 17.0% year on year. Externally, steady demand for components for the ICT market and continued high-level demand for HDDs for data centers contributed positively. On the other hand, the yen appreciated 1.2% against the US dollar, and foreign exchange fluctuations had a negative impact of approximately ¥2,500 million on revenue and approximately ¥10,600 million on operating income. Although impairment losses and restructuring costs of ¥13,600 million were recorded, these were absorbed by rationalization effects and increased shipments. Cash flow from operating activities rose ¥61,833 million year on year to ¥507,672 million, indicating an improvement in cash-generating capability as well.
Growth Strategy
The company aims for sustainable enhancement of corporate value through proactive investment in the AI ecosystem market and strengthened ROIC management.
The maximization of free cash flow generation is positioned as the first pillar of the medium-term management plan. Cash flow from operating activities in FY2026 (ending March 2026) reached ¥507,672 million, the highest level on record. In FY2027 (ending March 2027), the company will continue aggressive investment with fixed asset acquisitions of ¥370,000 million while maintaining and enhancing cash generation capability.
Impairment losses and structural reform expenses are being recorded (¥13,600 million in FY2026 (ending March 2026), approximately ¥6,000 million planned in FY2027 (ending March 2027)) primarily for businesses facing profitability challenges, driving improvement in business ROA (ROIC). The focus in the final year is to achieve the FY2027 (ending March 2027) target of 8% or higher business ROA, up from the FY2026 (ending March 2026) actual result of 7.5% (exceeding WACC).
Data centers, edge AI devices, AI smartphones, humanoid robots, semiconductor manufacturing equipment, and other areas are defined as the "AI ecosystem market," with aggressive investment being executed using a strategic investment allocation. Research and development expenses are planned to increase to ¥310,000 million (approximately 12% of net sales) in FY2027 (ending March 2027).
Under a shareholder return policy targeting a payout ratio of around 35%, the annual dividend for FY2026 (ending March 2026) was ¥36 (payout ratio of 34.9%), and the annual dividend for FY2027 (ending March 2027) is planned at ¥40 (interim ¥20, year-end ¥20). The basic policy is to steadily increase dividends through growth in earnings per share.
Last updated: July 19, 2026