Japanese companies post record summer bonuses and robust Q1 earnings

Ge Holdings reported a 19.7% rise in revenue to ¥1.25 trillion and a 32.8% increase in operating profit to ¥53.0 billion for the first quarter of FY2027, driven by strong luxury‑resale sales and demand for used Nintendo Switch 2 units. Kao posted a 7.8% revenue increase to ¥871.9 billion and a 38.5% jump in operating profit to ¥95.8 billion, marking a record high for the half‑year and prompting an upward revision of its full‑year outlook to ¥1.8 trillion in sales and ¥190 billion in operating profit. SoftBank Group’s Q1 FY2027 net profit fell 17.7% to ¥347.3 billion, but investment profit surged to ¥1.86 trillion, largely thanks to gains in Intel shares. Nintendo’s quarter saw operating profit rise 150% as software sales, including new Switch 2 titles, drove growth. Capcom noted that about 90% of its game sales are digital, so the shrinking disc market is expected to have little impact. A survey of 163 large Japanese firms showed the average summer bonus reached ¥1.042 million, the highest level recorded since 1981.