Sysmex (6869) Q2 2026 earnings summary

Executive summary

• Sales and profits declined year-on-year due to extraordinary factors in Q1, yen appreciation, ecosystem transition in Japan, inventory devaluation, and worsening market in China, despite a Q2 recovery.

• Overseas regions (excluding China) performed well on a local currency basis, with improved operating income in Q2 and sales growth in EMEA and Asia Pacific.

• Profitability was impacted by inventory revaluation, lower sales, and higher SG&A expenses, though Q2 saw significant improvement.

• Chinese market challenges expanded due to government healthcare cost controls and distributor inventory reductions, with sales down 17.9% year-on-year in local currency.

Financial highlights

• Full-year sales forecast revised to ¥510 billion and operating income to ¥76 billion, both down from original projections.

• Net sales for the first half were ¥232.5 billion, down 4.1% year-on-year; operating profit was ¥32.9 billion, down 25.9%.

• Operating cash flow and cash equivalents decreased year-on-year, with increased inventory levels.

• Profitability improved to 17.6% in Q2, excluding China.

• Basic earnings per share for the year is projected at ¥72.19.

Outlook and guidance

• Full-year forecast reflects risks in China, yen appreciation, and delay in clinical chemistry business launch.

• Second half operating profit expected to match last year, with overseas sales growth anticipated.

• Dividend forecast raised to ¥38 per share, including a commemorative dividend for the 30th anniversary.

• Next year, negative effects in China and Japan expected to bottom out, with recovery and new growth drivers ahead.