Nikon (7731) Q2 2026 earnings summary

Executive summary

• Revenue for 1H FY2026 was ¥312.9B, down 6.0% year-over-year, mainly due to FX effects and lower sales in key segments, while profit attributable to owners rose 80.7% to ¥5.3B, driven by deferred tax assets from subsidiary liquidation.

• Operating profit for 1H was -¥4.8B, a decline of ¥10.6B year-over-year, impacted by FX, product mix, and tariffs, despite gains from business transfers and restructuring.

• Total comprehensive income improved to ¥23.5B from a loss of ¥10.8B in the prior year.

• The full-year revenue forecast was revised downward to ¥680.0B, with operating profit now expected at ¥14.0B and profit attributable to owners at ¥20.0B.

Financial highlights

• 2Q FY2026 revenue was ¥154.8B, down 8.3% year-over-year; operating profit was -¥3.7B, a drop of ¥6.6B.

• Gross profit margin decreased to 41.9% from 45.7% year-over-year.

• 1H operating margin was -1.5%, down 3.2 points year-over-year; FCF for 1H was -¥22.8B.

• Basic EPS for 1H was ¥17.86; full-year EPS forecast is ¥60.78.

• Cash and cash equivalents fell by ¥2,957M to ¥160,633M as of September 30, 2025.

Outlook and guidance

• Full-year revenue and operating profit forecasts were revised downward due to lower sales expectations in Precision Equipment and Digital Manufacturing, partially offset by upward revisions in Imaging Products and Healthcare.

• Operating profit is projected at ¥14.0B, up 478.1% year-over-year, with basic EPS of ¥60.78.

• Tariff impacts for the full year are forecast at ¥7.5B.

• Exchange rates assumed for 2H: US$ ¥145, EURO ¥170.

• Imaging Products faces downward product mix and tariff impacts; semiconductor-related recovery expected in FY2027 or later.