Shimadzu (7701) Q1 2026 earnings summary

Executive summary

• Q1 revenue reached ¥118.4B, up 1.2% year-over-year, marking a record-high for the fifth consecutive Q1 period, driven by growth in Analytical & Measuring Instruments and Aircraft Equipment despite yen appreciation and global uncertainties.

• Operating income rose 11.2% year-over-year to ¥12.2B, also a record for Q1, while ordinary profit declined 17.3% to ¥11.3B due to lower non-operating income and higher expenses.

• Profit attributable to owners fell 20.7% year-over-year to ¥7.9B, impacted by foreign exchange losses and higher non-operating expenses.

• Growth in Analytical & Measuring Instruments (AMI) and Aircraft Equipment (AE) segments offset declines in Medical Systems (MED) and Industrial Machinery (IM).

• Full-year sales and operating profit forecasts remain unchanged despite tariff and FX uncertainties.

Financial highlights

• Net sales: ¥118.4B (+1.2% YoY); operating income: ¥12.2B (+11.2% YoY); operating margin: 10.3% (+0.9pt YoY).

• Ordinary income decreased 17.3% YoY to ¥11.3B; profit attributable to owners down 20.7% YoY to ¥7.9B.

• Gross profit improved to ¥53.3B from ¥50.1B YoY, with cost of sales decreasing despite higher net sales.

• R&D expenses increased to ¥7.3B; CAPEX rose to ¥5.4B; depreciation and amortization at ¥5.0B.

• Comprehensive income dropped to ¥7.3B from ¥18.4B YoY, mainly due to negative FX translation adjustments.

Outlook and guidance

• Full-year sales forecast: ¥515.0B (-4.5% YoY); operating profit: ¥58.0B (-19.1% YoY); net profit: ¥45.0B (-16.3% YoY).

• Tariff impacts under review; forecasts unchanged pending further assessment.

• Annual dividend forecast is ¥66.00 per share, same as previous year, excluding prior year’s ¥4.00 commemorative dividend.

• AMI to minimize tariff impact via value-added pricing and market expansion; MED to focus on new product sales and after-sales service.