Sharp (6753) Q2 2026 earnings summary

Executive summary

• First half FY2025 sales declined 13.3% year-over-year due to competition and FX volatility, but operating profit rose sharply, driven by cost reductions, business restructuring, and asset-light initiatives.

• Operating profit improved from 0.4 billion yen to 28.9 billion yen year-over-year; ordinary and bottom-line profit also saw significant gains.

• Profit attributable to owners of parent reached ¥45,480 million for the six months ended September 30, 2025, compared to ¥22,960 million a year earlier.

• Comprehensive income improved to ¥54,950 million from a loss of ¥12,652 million in the prior year period.

• Full-year financial forecast was revised upward, reflecting strong first half results and improved outlook.

Financial highlights

• First half FY2025 net sales: 950.3 billion yen, down 13.3% year-over-year.

• Operating profit: 28.9 billion yen (3.0% margin), up 5,942.2% year-over-year.

• Ordinary profit: 33.5 billion yen (3.5% margin), up 2,190.6% year-over-year.

• Bottom-line profit: 45.4 billion yen (4.8% margin), up 98.1% year-over-year.

• Gross profit margin improved as gross profit rose to ¥210,925 million from ¥188,219 million despite lower sales.

Outlook and guidance

• FY2025 full-year net sales forecast: 1,870.0 billion yen, down 13.4% year-over-year.

• Operating profit forecast: 45.0 billion yen (2.4% margin), up 64.6% year-over-year.

• Ordinary profit forecast: 45.0 billion yen (2.4% margin), up 154.9% year-over-year.

• Bottom-line profit forecast: 53.0 billion yen (2.8% margin), up 46.8% year-over-year.

• Basic earnings per share forecasted at ¥81.63 for the full year.