Institutions: As risks increase, Japanese companies may lower profit expectations

```htmlGolden Ten Data reported on April 24 that as Japan's earnings season kicks off, concerns over the impact of the Middle East war may lead companies to give conservative performance forecasts. According to a survey by Teikoku Databank, only 23.9% of Japanese companies expect both revenue and profit to increase in the fiscal year ending March 2027. This marks the third consecutive year that the number of companies predicting growth has declined. The survey shows that a hotel operator is worried that the escalating situation in the Middle East could trigger a vicious cycle of soaring oil prices, rising inflation, and yen depreciation, which would further push up prices.```