---
title: "Toyota supplier Denso expects FY 2027 profit drop on Middle East uncertainty, spending"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/284300072.md"
description: "Denso, a key supplier to Toyota, anticipates a 9.5% decline in operating profit for FY 2027, projecting 500 billion yen ($3.13 billion) due to Middle East uncertainties and increased investment spending. This forecast follows a strong fourth-quarter performance, where operating profit rose 50% to 176.6 billion yen, surpassing analyst expectations. Denso relies heavily on revenue from Toyota group companies, generating over half of its income from them."
datetime: "2026-04-28T02:50:25.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/284300072.md)
  - [en](https://longbridge.com/en/news/284300072.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/284300072.md)
---

# Toyota supplier Denso expects FY 2027 profit drop on Middle East uncertainty, spending

NAGOYA, Japan, April 28 : Japan's Denso, a major supplier to Toyota, said on Tuesday it expects operating profit in the financial year that began this month to fall from the prior year, citing uncertainty over the Middle East and higher investment spending. The world's second‑largest auto parts supplier forecast operating profit of 500 billion yen ($3.13 billion) for the year ending March 2027, down 9.5 per cent from 552.5 billion yen a year earlier. The weaker outlook follows a 50 per cent jump in fourth-quarter operating profit, as higher production volumes helped offset rising tariff, parts and material costs. Operating profit for the three months ended March totalled 176.6 billion yen, beating a median forecast of 171.3 billion yen in an LSEG survey of eight analysts and up from 117.4 billion yen a year earlier. Denso generates more than half of its revenue from Toyota group companies. ($1 = 159.5100 yen)

### Related Stocks

- [TM.US](https://longbridge.com/en/quote/TM.US.md)
- [6902.JP](https://longbridge.com/en/quote/6902.JP.md)
- [TOYOF.US](https://longbridge.com/en/quote/TOYOF.US.md)
- [7203.JP](https://longbridge.com/en/quote/7203.JP.md)

## Related News & Research

- [Toyota Files $2 Billion Texas Factory Plan As US Auto Pressure Builds](https://longbridge.com/en/news/286569889.md)
- [ZAWYA: Toyota Egypt Group announces its entry into the electric vehicle era with the launch of two new models](https://longbridge.com/en/news/286881320.md)
- [Toyota Mulls $2 Billion Investment to Add Assembly Line in Texas](https://longbridge.com/en/news/286518100.md)
- [Toyota issues oil substitution guidance amid supply shortage](https://longbridge.com/en/news/286347948.md)
- [Toyota and Hyroad to scale H2 trucking in California](https://longbridge.com/en/news/286104877.md)