Panasonic Slashes Profit Forecast Amid Battery Unit Woes

Japan’s Panasonic Holdings has revised down its full-year operating profit forecast by 13.5%, pointing to weaker performance in its key energy division — a major supplier of electric vehicle (EV) batteries to Tesla and other automakers.

The company now expects an operating profit of 320 billion yen ($2.12 billion) for the fiscal year ending March 2026, compared to its earlier projection of 370 billion yen. The downgrade reflects cooling demand for EV batteries and rising competition in the global clean mobility sector.

Panasonic’s energy segment, which plays a crucial role in powering EVs for leading manufacturers, has seen its profit margins squeezed by slowing sales growth and higher material costs. With global EV adoption showing signs of moderation, major battery suppliers are feeling the pinch, and Panasonic is no exception.

Despite the lowered outlook, Panasonic reaffirmed its commitment to advancing battery technology and expanding its global production footprint, particularly in North America, where demand for next-generation batteries remains strong.

The revised forecast highlights the challenges traditional electronics giants face as they adapt to a rapidly evolving automotive and energy market — where innovation, scale, and speed now define success.