Nikon (7731) Q4 2026 earnings summary

Executive summary

• Revenue for the year ended March 31, 2026, was ¥677.2B, down 5.3% year-over-year, mainly due to lower sales in Precision Equipment and significant impairment losses in Digital Manufacturing.

• Operating profit was -¥112.4B, a significant decline from the prior year, driven by impairment losses and costs related to the sale of MRMC shares.

• Profit attributable to owners of parent was -¥86.1B, with EPS at -¥261.57.

• Annual dividend was ¥40, down ¥10 year-over-year.

• All major business segments except Components and Digital Manufacturing saw year-over-year revenue declines.

Financial highlights

• Revenue: ¥677.2B (down 5.3% YoY), operating profit: -¥112.4B (down ¥114.8B YoY).

• Profit before tax: -¥106.5B; ROE: -14.1%.

• Free cash flow improved to +¥4.7B.

• Gross margin fell to 40.9% from 43.6% YoY.

• Cash and cash equivalents at year-end were ¥158.0B.

Outlook and guidance

• FY2027 revenue forecast: ¥740.0B (+9.3% YoY); operating profit: ¥10.0B (recovery from -¥112.4B).

• Profit attributable to owners of parent forecast at ¥10.0B; EPS forecast at ¥30.36.

• Dividend planned at ¥20; payout ratio 65.9%, with a target total return ratio of 60% or more.

• Growth expected from semiconductor-related business, healthcare market recovery, and digital manufacturing expansion, with focus on digital cinema cameras, large-size metal 3D printers, and lithography systems.