Murata Manufacturing (TSE:6981) Stock Can Q2 Earnings Recast The Selloff?

Murata Manufacturing stock closed at ¥6,358 on Friday after a choppy month that left the shares down about 25% over 30 days. The fresh Q2 2027 report landed into that weakness with a clear message. Core earnings power is moving in the opposite direction.

Basic earnings per share for the quarter printed at ¥57.77 on revenue of ¥588.5b, indicating a solid profit trend rather than a broken story. Short term traders focused on the chart. Long term holders have to weigh a P/E near 40x against improving earnings and firm net margins.

Love Murata Manufacturing’s earnings resilience but concerned about paying a P/E near 40x for that profitability? Check out a curated set of peers with stronger balance sheets and robust fundamentals in our list of solid balance sheet and fundamentals stocks (21 results)

Q2 2027 Earnings Summary

• Revenue (Q2 2027 vs Q2 2026): ¥588,500m vs. ¥486,624m (up about 20.9%)
• Net Income (Excl. Extra Items, Q2 2027 vs Q2 2026): ¥104,775m vs. ¥82,613m (up about 26.9%)
• Basic EPS (Q2 2027 vs Q2 2026): ¥57.77 vs. ¥44.99 (up about 28.4%)
• Trailing 12 Month Net Income (Excl. Extra Items, Q2 2027 vs Q2 2026): ¥287,602m vs. ¥235,781m (up about 22.0%)

Ask Charlie what Murata’s rich P/E says about its growth.

Murata bullish story meets firmer earnings base

Murata Manufacturing looks closer to the “essential electronics enabler” narrative when you line it up against these Q2 figures. Top line reached ¥588.5b while net income excluding extra items moved to ¥104.8b and basic EPS to ¥57.77. Trailing net profit of ¥287.6b supports the idea of a business still generating meaningful cash power from its component portfolio across smartphones, autos and industrial gear.

Cyclical risks and competitive pressure still in view

Bearish arguments around cyclicality and competition are not invalidated by one quarter. The share price is still down about 25% over 30 days even as earnings and revenue metrics improved year on year. That mix suggests investors remain wary of demand swings, pricing pressure or macro shocks across smartphones, autos and industrial customers, even with current profitability holding up.

After a 25% slide in 30 days and a volatile share price history, execution slipups or product misreads could matter fast. Review our risk analysis for Murata Manufacturing which shows 1 important warning sign

Hunt For Mispriced Earnings Power

Murata Manufacturing just showed how a solid earnings story can coincide with a volatile share price path. The real opportunity sits in finding stocks that could be undervalued before the gap closes.

• Company 1 - 41% below our estimate - target drivers trading up from older vehicles to serviced used cars as new models become less attainable.
• Company 2 - 33% below our estimate - supply intricate photomasks that enable chipmakers to keep shrinking geometries when legacy tooling reaches technical constraints.
• Company 3 - 37% below our estimate - equip data intensive facilities that must maintain reliable air and cooling performance as server activity and heat spikes increase.

Three companies from the same screener. Open the full list of 15 companies trading below our fair value estimates →

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