As Japan's earnings season swings into full gear, the strong performance by major companies is expected to continue into the next year despite a struggling economy and conservative outlooks from corporations.
Analysts say Japan Inc will continue to post solid profit growth this and the next year, buoyed by cheaper oil prices, recovery in domestic demand and the sharply weakened yen.
This even as the world's third biggest economy continues to suffer deflationary pressures after the consumption tax hike last year, which caused the economy to dip into technical recession in the third quarter.
Goldman is forecasting recurring profit growth of 11 percent on-year in the fiscal year 2014 that ended in March, and of 22.1 percent on-year in fiscal 2015 for the 1,675 companies listed on the first section of the Tokyo Stock Exchange.
Daiwa Securities, meanwhile, is predicting profit growth of 6 percent on-year in fiscal 2014 and of 14 percent on-year in fiscal 2015 for the 200 firms in its large cap index.
And "there is plenty of room to revise upwards," Daiwa chief analyst Tokushi Yamazaki told CNBC by phone. "Cheaper oil and the impending recovery in domestic consumption could lift corporate profits to up to 20 percent in fiscal 2015," he said.