Olympus (7733) Q3 2026 earnings summary

Executive summary

• Q3 FY2026 revenue grew 4% YoY to ¥261.0 billion, led by Europe, emerging markets, and China, but U.S. GI sales lagged and are expected to rebound in Q4.

• Revenue for the nine months ended December 31, 2025, was ¥715.4 billion, down 1.4% YoY, with declines in both main business divisions.

• Operating profit fell 35.4% to ¥70.3 billion, and profit attributable to owners dropped 43.2% to ¥43.4 billion.

• The Orthopedic Business was classified as a discontinued operation from Q1 FY2025.

• Leadership changes and restructuring are underway to enhance operational execution.

Financial highlights

• Q3 adjusted operating profit: ¥39.3 billion (15.1% margin, -2.1pp YoY); 9-month adjusted operating profit: ¥89.9 billion (-30% YoY).

• Gross margin declined to 63.2% in Q3 FY2026, impacted by ship holds, tariffs, and recall costs.

• Basic earnings per share for the nine months was ¥38.87, down from ¥66.43 YoY.

• Cash and cash equivalents at period end were ¥169.5 billion, a decrease of ¥83.1 billion from the previous fiscal year-end.

• R&D expenditures: ¥80.5 billion for 9 months; forecast ¥113.0 billion for FY2026.

Outlook and guidance

• Full-year revenue forecast remains at ¥998.0 billion, but operating profit guidance was revised down to ¥87–75 billion.

• Adjusted operating margin forecast revised to 12.7%–13.9% due to ship-holds and COGS variability.

• Profit attributable to owners forecast: ¥50.0–59.0 billion; EPS: ¥45–¥53.

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

• Mid-term plan targets remain unchanged: 3–5% revenue growth, 100+ bps margin expansion YoY, double-digit EPS CAGR.