Seiko Epson (6724) Q3 2026 earnings summary

Executive summary

• Q3 FY2025 results exceeded internal plans despite soft demand in China and Europe, with strong performance in printing solutions and manufacturing-related & wearables, but visual communications orders declined, especially for education and event products.

• Revenue for the nine months ended December 31, 2025, rose 2.0% year-over-year to ¥1,043.8 billion, driven by growth in printing solutions and manufacturing-related & wearables segments, offsetting declines in visual communications.

• Business profit fell 13.7% year-over-year to ¥63.8 billion, mainly due to lower visual communications revenue and higher U.S. tariff costs.

• Favorable foreign exchange effects contributed to increased revenue and profit, offsetting the impact of U.S. tariffs compared to the previous year.

• Profit attributable to owners of the parent dropped 25.2% year-over-year to ¥35.4 billion.

Financial highlights

• Q3 FY2025 revenue rose 7.7% year-over-year to ¥376.5B; business profit increased 15% to ¥26.4B.

• For the first nine months, revenue grew 2% year-over-year to ¥1,043.8B, but business profit declined 13.7% to ¥63.8B.

• Gross profit for the period was ¥371.3 billion, with a gross margin of 35.6%.

• Operating profit declined 7.1% year-over-year to ¥58.4 billion.

• Profit for the period attributable to owners fell 30.4% year-over-year to ¥16.8B; EPS dropped to ¥52.37 from ¥74.10.

Outlook and guidance

• FY2025 full-year revenue outlook raised to ¥1,390.0B (+2.0% year-over-year); business profit forecast unchanged at ¥75.0B (-16.3% year-over-year).

• Profit for the period is projected at ¥41.0 billion, with basic EPS forecast at ¥127.95.

• Q4 demand decline in some businesses and continued challenges in visual communications are factored into the outlook.

• Estimates reflect positive foreign exchange effects and strong office/home printing sales, offset by visual communications weakness.

• Foreign exchange assumptions revised for a weaker yen.