Seiko Epson (6724) Q1 2027 earnings summary

Executive summary

• Q1 FY2026 revenue rose 14.4% year-over-year to ¥367.2 billion, driven by solid demand, favorable foreign exchange effects, and strong performance in Precision Innovation and Industrial & Robotics.

• Business profit increased 12.0% to ¥22.1 billion, despite higher parts and U.S. tariff costs.

• Net profit attributable to owners nearly doubled to ¥13.0 billion, with EPS rising from ¥20.64 to ¥40.52.

• The yen's depreciation against the USD and EUR contributed significantly to results.

• Full-year revenue and profit outlooks were raised, reflecting strong Q1 results, pricing measures, and one-time U.S. tariff refunds.

Financial highlights

• Gross profit increased to ¥127.7 billion from ¥116.3 billion year-over-year.

• Operating profit increased 45.7% to ¥20.6 billion; profit before tax up 60.4% to ¥20.7 billion.

• Basic earnings per share doubled to ¥40.52 from ¥20.64.

• Total comprehensive income for the period was ¥23.6 billion, compared to a loss of ¥3.6 billion last year.

• Positive foreign exchange effects contributed significantly to revenue and profit.

Outlook and guidance

• FY2026 revenue guidance raised to ¥1,510.0 billion (+6.8% YoY); business profit outlook raised to ¥105.0 billion (+25.3% YoY), reflecting one-time U.S. tariff refunds and FX effects.

• Profit attributable to owners of the parent forecast at ¥69.0 billion (+279.1%).

• Segment outlooks raised, notably for Precision Innovation, factoring in strong demand and U.S. tariff refunds.

• Higher crude oil and memory prices expected to impact costs, but pricing adjustments and tariff refunds offset.

• Assumed exchange rates for the remainder of the year: ¥155/USD and ¥176/EUR.