Olympus (7733) Q1 2027 earnings summary

Executive summary

• Revenue for Q1 FY2027 rose 16.4% year-over-year to ¥240.4B, driven by strong GIS performance in North America, Europe, and APAC, and robust demand for advanced endoscopy products.

• Adjusted operating margin improved to 12.8%, up 6.4pp YoY, supported by revenue growth, lower R&D and personnel expenses, and improved commercial execution.

• Adjusted EPS increased 130% YoY to ¥20; adjusted free cash flow was ¥9.2B, up ¥26.7B YoY.

• The acquisition of BioProtect Ltd. was completed, expanding the portfolio in endoscopy-related therapeutic areas.

• Full-year guidance reaffirmed, with structural tailwinds expected in H2 and ongoing strategic focus on innovation and operational efficiency.

Financial highlights

• Consolidated revenue: ¥240.4B (+16% YoY, +5% constant currency); gross profit increased to ¥156,827 million, with a gross margin of 65.2%.

• Adjusted operating profit: ¥30.7B (+133% YoY, +98% constant currency); operating profit increased 74.4% YoY to ¥28,951 million.

• Profit attributable to owners: ¥19.1B (+112% YoY); basic EPS rose to ¥17.76 from ¥7.97 YoY.

• SG&A as % of revenue: 52.0% (-7.2pp YoY); SG&A expenses declined by 5.5% YoY on a constant currency basis.

• Cash and cash equivalents decreased by ¥69,493 million to ¥118,545 million, mainly due to share repurchases and the BioProtect acquisition.

Outlook and guidance

• Full-year revenue guidance: ¥1,055.0B to ¥1,076.0B (+4.4% to +6.5% YoY); operating profit expected at ¥155,500 million (up 60.1%).

• Adjusted operating margin expected at 15.2% to 16.7% (+1.0pp to +2.5pp YoY); adjusted EPS guidance: ¥106 to ¥119 (+15% to +29% YoY).

• Year-end dividend guidance: ¥30 per share.

• No changes have been made to previously announced guidance; shipment holds expected to ease in H2.

• R&D spending expected to ramp up in the second half, following typical program spend seasonality.