Olympus (7733) Q4 2026 earnings summary

Executive summary

• FY2026 was a rebuilding year, with revenue rising 1.3% year-over-year to ¥1,010.7B, driven by growth in the Gastrointestinal Solutions Division, while absorbing ~¥30B in FDA-related import alerts and ship-holds.

• Operating profit fell 40.2% to ¥97.1B due to higher costs, significant one-time expenses, and restructuring, while adjusted operating profit declined 24% to ¥143.3B.

• Q4 revenue grew 9% year-over-year, led by strong GIS performance in North America, Europe, and APAC.

• Strategic initiatives and cost discipline are showing early positive results, setting a credible baseline for future growth.

• The Orthopedic Business was divested and classified as a discontinued operation from Q1 FY2026.

Financial highlights

• FY2026 revenue: ¥1,010.7B (+1% YoY); adjusted operating profit: ¥143.3B (-24% YoY); adjusted operating margin: 14.2% (-4.7pp YoY).

• Adjusted EPS: ¥92 (-21% YoY); adjusted free cash flow: ¥53.5B (-51% YoY).

• Q4 revenue: ¥295.3B (+9% YoY); adjusted operating margin: 18.1% (-4.1pp YoY).

• Cost of sales increased 13.7% YoY, with the cost-to-sales ratio deteriorating by 3.8 points to 35.3% due to U.S. tariffs and sales mix.

• Other expenses surged due to ¥26.9B in global restructuring costs and impairment losses on intangible and development assets.

Outlook and guidance

• FY2027 revenue guidance: ¥1,055.0B–¥1,076.0B (+4.4% to +6.5% YoY); adjusted operating margin: 15.2%–16.7% (+1.0pp to +2.5pp YoY).

• Adjusted EPS guidance: ¥106–¥119 (+15% to +29% YoY).

• FY2027 operating profit expected to rise to ¥136.5B–¥155.5B; profit attributable to owners of parent to ¥95.5B–¥109.0B.

• H1 FY2027: slower growth as ship-hold impacts normalize; H2: accelerated growth from ship-hold resolution, new product launches, and operating model savings.

• Annual dividend guidance is maintained at ¥30 per share for FY2027.