Canon (7751) Q3 2026 earnings summary

Executive summary

• 3Q sales rose 4.9% YoY to a record ¥1,158.8B; operating profit increased 10.3% to ¥97.1B and net income rose 18.2% to ¥75.2B.

• 9M sales increased 4.0% to ¥3,433.4B and operating profit rose 8.4% to ¥327.7B.

• Imaging led segment growth, while Medical and Industrial operating profit declined; a depreciation-method change also lifted reported earnings.

Financial highlights

• 3Q gross profit increased 6.2% to ¥543.9B; gross margin was 46.9% vs. 46.4% and operating margin was 8.4% vs. 8.0%.

• 9M income before taxes rose 14.1% to ¥358.4B; net income attributable to shareholders increased 12.2% to ¥246.4B.

• 9M basic EPS was ¥287.24 vs. ¥240.99; comprehensive income declined to ¥203.5B from ¥247.8B.

• FY26 projected operating margin is 9.6% vs. 9.8% in 2025; projected net income margin is 7.0% vs. 7.2%.

• FY26 ROE outlook is 9.6%; stated cost of capital range is 5%–6%.

Outlook and guidance

• FY26 forecast: sales ¥4,766B (+3.1% YoY), operating profit ¥456B (+0.1%), income before taxes ¥483B (+0.2%) and net income attributable to shareholders ¥333B (+0.3%).

• Versus prior guidance, sales were cut ¥34B, operating profit ¥9B and net income ¥7B; Medical weakness drove the overall reduction.

• Medical production-delay sales impact was revised from ~¥45B to ~¥90B; production normalization is expected from 2027 onward.

• Printing outlook rose after improved 3Q performance; Camera and Industrial factors behind downward revisions are expected to be resolved next year.

• FY26 basic EPS forecast is ¥390.78 (+6.3%); annual dividend forecast is ¥160 per share, with a ~40% payout target without reducing the dividend.