Seiko Epson (6724) Q2 2026 earnings summary

Executive summary

• Q2 revenue grew year-over-year, led by printing solutions and manufacturing-related & wearables, but business profit declined due to higher U.S. tariffs, lower visual communications revenue, and pricing/inventory adjustments in printing solutions.

• Revenue for the six months ended September 30, 2025, was ¥667.4 billion, down 1.0% year-over-year, mainly due to negative foreign exchange effects despite solid performance in printing and manufacturing-related segments.

• Both revenue and business profit exceeded internal plans, aided by favorable foreign exchange and strong office & home printing sales.

• Business profit declined 26.7% to ¥37.4 billion, impacted by lower visual communications revenue, higher U.S. tariff costs, and FX losses.

• Profit attributable to owners of the parent company was ¥18.7 billion, down 19.8% year-over-year.

Financial highlights

• Q2 FY2025 revenue: ¥346.5B (+2.6% YoY); business profit: ¥17.7B (-35.8% YoY); profit attributable to owners: ¥12.1B (+192.5% YoY); EPS: ¥37.62.

• Full-year FY2025 revenue outlook: ¥1,370.0B (+0.5% YoY); business profit: ¥75.0B (-16.3% YoY); EPS: ¥127.95.

• Gross profit for the period was ¥235.9 billion, with a gross margin of 35.4%.

• Operating profit was ¥31.1 billion, down 10.9% year-over-year.

• Q2 profit before tax rose to ¥17.9B (+199.7% YoY), reflecting a rebound from prior year FX losses.

Outlook and guidance

• FY2025 business profit outlook unchanged at ¥75B; revenue forecast raised to ¥1,370B.

• Full-year revenue forecast raised to ¥1,370.0 billion (+2.2% from previous outlook), with business profit forecast unchanged at ¥75.0 billion.

• Profit for the period and profit attributable to owners are both forecast at ¥41.0 billion, down from ¥55.2 billion in FY2024.

• Demand forecasts for printheads and commercial & industrial IJPs revised downward; manufacturing-related & wearables outlook raised on strong microdevice sales.

• Foreign exchange assumptions updated for a weaker yen; assumed rates for H2: ¥148/USD and ¥171/EUR.