Sharp (6753) Q1 2026 earnings summary

Executive summary

• Operating profit in the Brand Business rose about 1.5 times year-over-year, despite lower sales due to competition and yen appreciation.

• Returned to profitability with ¥27,239 million profit attributable to owners of parent for Q1 FY2025, reversing a loss of ¥1,285 million year-over-year.

• Net sales declined 11.2% year-over-year to ¥472,490 million for the quarter.

• Equity ratio improved to 12.5% as of June 30, 2025, up from 10.5% at the previous fiscal year-end.

• Display Devices segment saw a significant reduction in operating losses, driven by higher sales for PC, tablet, and automotive applications and structural reforms.

Financial highlights

• Operating profit reached ¥15,302 million, a turnaround from a ¥5,810 million loss in the same quarter last year.

• Ordinary profit was ¥18,594 million, compared to a ¥10,178 million loss year-over-year.

• Bottom-line profit improved to ¥27,239 million from a loss of ¥1,285 million year-over-year.

• Basic earnings per share improved to ¥41.95 from a loss of ¥1.98 year-over-year.

• Cost reductions, improved model mix, and structural reforms contributed to profit growth.

Outlook and guidance

• FY2026 net sales forecast at ¥1,870,000 million, down 13.4% year-over-year but up ¥20,000 million from previous guidance.

• Operating profit forecast raised to ¥30,000 million (1.6% margin), up ¥10,000 million from prior guidance.

• Ordinary profit forecast increased to ¥27,000 million; bottom-line profit forecast at ¥32,000 million.

• Basic earnings per share forecasted at ¥49.28 for the full year.

• Upward revision reflects Q1 outperformance, FX gains, and equity-method investment income.