Sharp (6753) investor relations material

Executive summary

• Net sales for FY ended March 31, 2026, were ¥1,892.8B, down 12.4% year-over-year, but operating profit rose 77.6% to ¥48.5B and ordinary profit surged 228.3% to ¥57.9B, exceeding forecasts.

• Profit attributable to owners of parent increased 31.4% year-over-year to ¥47.4B.

• Operating profit exceeded the previous year despite a sales decline, driven by improved profitability and structural reforms.

• Equity ratio nearly doubled to 19.6% and syndicated loan was refinanced, leading to a credit rating upgrade.

• Comprehensive income jumped to ¥130.95B from ¥10.05B the previous year.

Financial highlights

• Gross profit increased to ¥420.8B from ¥405.7B year-over-year, despite lower net sales.

• Basic earnings per share rose to ¥73.05 from ¥55.59 year-over-year.

• Net assets increased to ¥295.3B from ¥167.7B, and equity-to-asset ratio improved to 19.6% from 10.5%.

• Free cash flow was ¥71.5B.

• Cash and cash equivalents at year-end were ¥230.5B, down from ¥242.7B.

Outlook and guidance

• FY2027 forecast: net sales ¥1,770.0B (-6.5% YoY), operating profit ¥49.0B (+0.9% YoY), profit attributable to owners of parent ¥42.0B (-11.5% YoY), basic EPS ¥64.68.

• Smart Life segment expected to grow, while Smart Workplace and Display Device face declines.

• External risks such as rising memory/SSD prices and fuel costs not fully reflected in forecasts.