EIZO (6737) Q3 2026 earnings summary

Executive summary

• Net sales for the nine months ended December 31, 2025, reached JPY 58,809 million, up 1.2% year-over-year, driven by healthcare sales recovery in Europe, North America, and China, despite continued economic stagnation in Europe.

• Operating profit declined 39.1% year-over-year to JPY 1,319 million, mainly due to increased SG&A expenses from wage hikes, new Technology Hub costs, and sales expansion in India and the Middle East.

• Net income attributable to owners rose 42.6% year-over-year to JPY 2,842 million, supported by FOREX gains and a JPY 1,328 million gain on sale of investment securities.

• The company revised its full-year outlook downward, citing weaker-than-expected demand in key markets and inventory write-downs.

Financial highlights

• Gross profit for the nine-month period was JPY 19,097 million, nearly flat year-over-year, with a gross margin of 32.5%.

• SG&A expenses increased 4.4% year-over-year to JPY 17,777 million, reflecting wage hikes and expansion costs.

• Operating profit margin dropped 1.5 points to 2.2%.

• Ordinary profit was JPY 2,800 million, down 6.7% year-over-year.

• Basic earnings per share for the nine months was JPY 69.54, up from JPY 48.44 a year earlier.

Outlook and guidance

• Full-year net sales forecast revised to JPY 79,000 million (down 7.1% from previous guidance), with operating profit expected at JPY 1,400 million (down 70.8%) and net income at JPY 3,200 million (down JPY 1,200 million YoY).

• Inventory valuation loss of approximately JPY 400 million expected in Q4 due to excess legacy models in Europe.

• Extraordinary gain of JPY 950 million from sale of securities and extraordinary losses of JPY 350 million from asset disposal and impairment anticipated in Q4.

• Dividend forecast for FY2026 is JPY 110 per share; year-end dividend maintained at JPY 55.00 per share.