Sharp (6753) Q1 2026 earnings summary

Executive summary

• Operating profit improved to ¥15.3B in Q1 FY2025 from a ¥5.8B loss 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.

• Ordinary and bottom-line profit returned to positive territory, reflecting significant operational improvements.

• Financial results forecast for FY2025 was revised upward, incorporating Q1 outperformance and FX gains.

• Equity ratio improved to 12.5% at end-Q1 FY2025 from 10.5% at end-FY2024.

Financial highlights

• Q1 FY2025 net sales fell 11.2% year-over-year to ¥472.4B.

• Operating profit rose to ¥15.3B (3.2% margin) from a ¥5.8B loss (-1.1% margin) year-over-year.

• Ordinary profit reached ¥18.5B, up ¥28.6B year-over-year.

• Bottom-line profit improved to ¥27.2B from a ¥1.2B loss year-over-year.

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

Outlook and guidance

• FY2025 net sales forecast revised to ¥1,870.0B, down 13.4% year-over-year but up ¥20.0B from previous guidance.

• Operating profit forecast raised to ¥30.0B (1.6% margin), up ¥10.0B from prior guidance.

• Ordinary profit forecast increased to ¥27.0B, and bottom-line profit to ¥32.0B.

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

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