Nikon (7731) investor relations material

Executive summary

• Q1 FY2027 revenue rose to ¥164.182B, up 3.8% year-over-year, driven by growth in non-Imaging segments and FX tailwinds.

• Operating profit was -¥0.997B, a slight YoY improvement, as gains from US tariff refunds and higher sales were offset by inventory write-downs and higher memory prices.

• Profit attributable to owners was ¥1.289B, down sharply YoY due to the absence of prior-year tax benefits from the dissolution of Nikon Metrology NV.

• Total comprehensive income was ¥11.479B, nearly flat year-over-year.

Financial highlights

• Q1 revenue: ¥164.182B (+3.8% YoY); operating profit: -¥0.997B (improved YoY); profit before tax: ¥1.5B (+88.8% YoY).

• Free cash flow improved to ¥4.5B from -¥9.3B YoY.

• Gross profit margin declined to 39.3% from 42.5% YoY.

• Basic EPS fell to ¥3.91 from ¥28.79 YoY.

• Cash and cash equivalents at quarter-end were ¥157.06B, down ¥0.976B from March 31, 2026.

Outlook and guidance

• FY2027 revenue forecast revised to ¥732.0B; operating profit projected at ¥11.0B.

• Full-year profit attributable to owners forecast at ¥10.0B; annual dividend forecast at ¥20 per share.

• Imaging Products outlook revised down due to demand contraction in China; Healthcare and Industry segments revised up on Q1 performance.

• Forecast revision was announced in this report.