Sankyo (6417) Q1 2026 earnings summary

Executive summary

• Net sales rose 30.7% year-over-year to 55,185 million yen, with significant growth in the pachinko machines segment offsetting declines in other areas.

• Operating income increased 38.1% year-over-year to 23,851 million yen, driven by higher sales volumes and improved gross margins.

• Net income attributable to owners of parent grew 39.5% year-over-year to 17,447 million yen, with EPS up to 80.36 yen.

• Strong progress against full-year forecasts in all segments, with pachinko machines showing especially robust performance.

• Strong performance in pachinko machines, driven by new titles and favorable sales of tie-up models, offset declines in other segments.

Financial highlights

• Gross profit margin improved by 2.0 points year-over-year to 61.4%; operating margin rose 2.3 points to 43.2%.

• Gross profit increased to 33.9 billion yen from 25.1 billion yen year-over-year.

• Recurring income increased 38.8% year-over-year to 24,391 million yen.

• SG&A expenses rose 28.6% year-over-year, mainly due to higher sales commissions and R&D expenses.

• Total assets decreased to 311.9 billion yen from 336.7 billion yen at prior fiscal year-end, mainly due to dividend payments, treasury stock repurchases, and lower cash and deposits.

Outlook and guidance

• Full-year net sales forecast at 185,000 million yen, with operating income projected at 63,000 million yen and net income at 44,000 million yen.

• Pachinko machine sales forecast at 230,500 units and pachislot machine sales at 132,000 units for FY 3/2026.

• Performance-linked dividend policy targets a consolidated payout ratio of 40%, with a full-year dividend forecast of 90 yen per share.

• Market expects continued growth in pachinko, with new gaming features anticipated to stimulate demand.