Panasonic Cuts Fiscal Profit Forecast 13.5% as EV Battery Demand Weakens

Post by : Bianca Suleiman

Japan's Panasonic Holdings has lowered its full-year operating profit forecast by 13.5%, attributing the revision to weaker results in its energy business — a key supplier of electric vehicle batteries to Tesla and several other automakers.

The firm now projects an operating profit of 320 billion yen ($2.12 billion) for the fiscal year ending March 2026, down from the previous estimate of 370 billion yen. Management cited subdued demand for EV batteries and intensified global competition in the clean mobility sector as drivers of the downgrade.

Panasonic's energy division has experienced margin pressure as sales growth cooled and material costs rose. The moderation in EV adoption has begun to affect major battery manufacturers, compressing profitability across the supply chain.

Despite the reduced outlook, Panasonic reiterated its strategic emphasis on advancing battery technologies and expanding production capacity worldwide, with particular focus on North America where longer-term demand for next-generation batteries remains robust.

The revision underscores the challenges incumbent electronics groups face while adapting to rapid shifts in the automotive and energy markets, where scale, technological progress and execution speed are increasingly decisive.