Nikon (7731) Q1 2026 earnings summary

Executive summary

• Q1 revenue declined 3.5% year-over-year to ¥158.1B, mainly due to FX effects, weaker demand, and lower Healthcare sales from US grant suspensions and tariffs.

• Operating profit fell to -¥1.1B, down ¥4.0B year-over-year, impacted by FX, tariffs, and product mix changes.

• Profit attributable to owners of parent rose to ¥9.4B, up 243.6% year-over-year, due to a ¥9.3B deferred tax asset from dissolving a subsidiary.

• Full-year forecasts were revised downward for revenue and operating profit, reflecting weaker demand, U.S. tariffs, and sales timing shifts.

Financial highlights

• Q1 operating margin dropped to -0.8% from 1.8% year-over-year; gross profit margin declined to 42.5% from 45.7%.

• Profit before tax decreased 82.9% year-over-year to ¥0.7B.

• Free cash flow was negative at -¥9.3B; net cash from operating activities was ¥4.4B, down from ¥17.6B year-over-year.

• Cash and cash equivalents increased to ¥164.7B as of June 30, 2025.

• Exchange rate impacts: US$ at ¥145, EURO at ¥164; tariffs reduced Q1 operating profit by ¥1.3B.

Outlook and guidance

• Full-year revenue forecast revised down to ¥700.0B (¥10.0B lower), with operating profit at ¥21.0B (¥15.0B lower), mainly due to tariffs and FX.

• Full-year profit attributable to owners of parent forecast at ¥27.0B, down ¥3.0B from previous guidance.

• Six-month forecast lowered for revenue and profit, but profit attributable to owners raised due to deferred tax asset recognition.

• Imaging Products expected to remain solid; Precision Equipment and Components to recover in H2; Healthcare and Digital Manufacturing face ongoing challenges.

• Tariff impacts expected to reduce full-year operating profit by ¥7.5B.