Panasonic Holdings reported that operating profit at its energy unit, which manufactures batteries for electric vehicles and data centers, grew by double digits in the first quarter.
The Japanese electronics giant attributed the improvement to higher sales volumes across both key segments, reflecting sustained demand for power-storage solutions despite broader market volatility.
The result underscores the strategic importance of the energy business within Panasonic's portfolio.
As automakers accelerate electrification and hyperscalers expand data-center infrastructure, the company's battery division is positioned to capture a larger share of the growing addressable market.
This performance comes as investors scrutinize the profitability of EV supply chains amid intense competition from Chinese manufacturers.
Panasonic's energy unit has been a focal point for the group's turnaround efforts, leveraging its long-standing partnership with Tesla while diversifying its customer base.