Hamamatsu Photonics (6965) Q1 2026 earnings summary

Executive summary

• Sales increased 2.6% year-over-year to ¥51.9 billion in FY26 Q1, with strong industrial growth and medical-bio demand stabilizing.

• Operating profit declined 43.9% year-over-year to ¥2.4 billion due to upfront investments and higher SG&A expenses.

• Net profit attributable to owners of parent dropped 33.5% to ¥2.78 billion.

• Comprehensive income rose 5.3% year-over-year to ¥10.21 billion, driven by foreign currency translation gains.

• Full-year forecast maintained: sales ¥222.0 billion (+4.7%), operating profit ¥17.2 billion (+6.4%), EPS ¥48.67.

Financial highlights

• Gross profit margin decreased by 2.7 percentage points to 45.6% due to increased investments.

• SG&A expenses rose by ¥1.1 billion year-over-year.

• Total assets increased to ¥478.3 billion, up ¥23.3 billion from the previous fiscal year-end.

• Net assets decreased to ¥319.98 billion, mainly due to treasury share purchases.

• Sales by region: Asia up 5.7%, North America up 9.7%, Japan up 3.7%, Europe down 8.8%.

Outlook and guidance

• No change to full-year earnings forecasts; FY26 sales expected at ¥222.0 billion, up 4.7% year-over-year.

• Gross margin improvement anticipated in the second half due to price optimization.

• Order intake remains strong, tracking ahead of last year.

• Assumes exchange rates of JPY 148/USD, JPY 170/EUR, and JPY 20/RMB for the fiscal year.