Sankyo (6417) Q3 2026 earnings summary

Executive summary

• Net sales for the first nine months of FY 3/2026 reached ¥161.8 billion, up 5.3% year-over-year, driven by strong pachinko machine sales, while operating income declined 1.2% to ¥61.7 billion and net income attributable to owners was nearly flat at ¥45.4 billion.

• Market conditions improved for pachinko with successful new titles, but pachislot faced supply constraints due to low inspection pass rates.

Financial highlights

• Pachinko machines business net sales rose 39.5% year-over-year to ¥111.9 billion, with operating income up 47.6% to ¥49.8 billion.

• Pachislot machines business net sales dropped 35.2% to ¥35.8 billion, with operating income down 50.3% to ¥16.2 billion.

• Ball bearing supply business net sales fell 22.7% to ¥13.8 billion.

• Gross profit increased to ¥94.4 billion from ¥91.0 billion year-over-year.

• Operating margin was 38.1%, down 2.5pt year-over-year.

Outlook and guidance

• Full-year net sales forecast remains at ¥185 billion, with operating income projected at ¥63 billion and net income at ¥44 billion.

• Pachinko machine sales are expected to meet or exceed targets, while pachislot sales are forecast to fall short due to postponed title releases.

• New pricing policy and low-price rental plan for pachinko machines to be introduced in FY 3/2027 to stimulate market demand.

• No changes to previously announced forecasts.