Ricoh Company (7752) Q4 2026 earnings summary

Executive summary

• Revenues and earnings increased, with operating profit up 42.1% year-over-year, driven by Office Services growth, cost controls, and favorable foreign exchange rates.

• Office Services recurring revenues rose 15% in Japan, with double-digit IT and application services growth; Europe returned to growth in Q3, while Americas saw a decline due to divestitures.

• Digital Products exceeded expectations due to ETRIA contributions and cost controls; Graphic Communications saw a rebound in non-hardware demand in Q4.

• Corporate Value Improvement Project delivered gains exceeding forecasts, offsetting tariff impacts.

• Profit attributable to owners of the parent grew 21.8% to ¥55.6 billion; comprehensive income surged to ¥149.4 billion, mainly from currency translation gains.

Financial highlights

• Sales rose 3.2% year-over-year to ¥2,608.3 billion; gross profit increased 2.4% to ¥889.1 billion.

• Operating profit grew 42.1% to ¥90.7 billion; operating margin improved by 1.0pt to 3.5%.

• Profit attributable to owners increased 21.8% to ¥55.6 billion; EPS rose to ¥97.80.

• Free cash flow increased to ¥85.5 billion, supported by higher earnings and asset divestments.

• Domestic sales increased 9.2% year-over-year, while overseas sales declined 0.5%.

Outlook and guidance

• FY2027 forecast: sales ¥2,700.0 billion (+3.5%), operating profit ¥95.0 billion (+4.7%), profit attributable to owners of the parent ¥62.0 billion (+11.4%).

• Recurring earnings growth in Workplace Services expected to offset declines in Office Printing hardware.

• Cost pressures expected from rising semiconductor and material prices; ¥10 billion contingency reserve set aside.

• Dividend payout ratio target remains at 50%, with dividend to increase to ¥44 per share and flexible share repurchases planned.