Nidec Forecasts JPY 200 Billion Profit for 2027 Amid Recovery Plan
Nidec Corporation has outlined an ambitious recovery plan following significant financial challenges. In its September 30, 2026 financial statement, the company forecasted a JPY 200 billion operating profit for the fiscal year ending March 31, 2027. This comes amid a turbulent period marked by a JPY 519.0 billion operating loss in fiscal year 2026, largely due to a JPY 632.1 billion impairment loss. Analysts have set an average target price of JPY 2,474.30 for Nidec stock, which was trading at JPY 2,165.00 on October 6, 2026.
The company's fiscal year 2026 revenue increased by 3.9 percent to JPY 2,708.7 billion, but the operating profit fell sharply from a restated JPY 128.2 billion profit in fiscal year 2025. The forecast for fiscal year 2027 includes JPY 2.8 trillion in revenue and JPY 100.0 billion in profit attributable to owners of the parent. These figures underscore the company's efforts to rebuild after a challenging year that included a JPY 564.6 billion net loss and an auditor's refusal to sign off on the financial statements.
Market sentiment reflects the uncertainty surrounding Nidec's recovery. The Japan Times reported on October 6, 2026, that the company's yen bond due in 2032 had fallen to JPY 77.70. Analysts remain divided, with seven producing a neutral consensus: two Buy ratings, four Hold ratings, and one Sell rating. The average target price of JPY 2,474.30 represents a 14.29 percent premium over the current trading price but must be weighed against the company's financial challenges and need to rebuild internal controls.
Nidec's stock has seen significant volatility, trading within a 52-week range of JPY 1,797.00 to JPY 2,941.00. The company's market capitalization stood at JPY 2.5 trillion as of October 6, 2026. The path forward for Nidec will depend on its ability to execute its recovery plan and restore investor confidence.