Shimadzu (7701) Q4 2026 earnings summary

Executive summary

• Net sales reached ¥560.7B (+4% YoY), setting a record high for the sixth consecutive year, with operating profit, ordinary income, and profit attributable to owners of parent also hitting record highs for the first time in two years.

• Operating profit increased 2.8% to ¥73.7B; ordinary profit rose 14.9% to ¥82.8B; profit attributable to owners of parent grew 12.5% to ¥60.5B.

• Growth was driven by strong performance in Analytical & Measuring Instruments, Medical Systems, and Aircraft Equipment, with notable contributions from Japan, North America, Europe, and other Asian regions, offsetting declines in China.

• Strategic focus included AI integration, recurring business expansion, and new product launches in key domains.

• Overseas sales ratio rose to 56.7%, with significant contributions from Europe and other Asian countries.

Financial highlights

• Net sales: ¥560.7B (+4% YoY); Operating income: ¥73.7B (+3% YoY); Ordinary income: ¥82.8B (+15% YoY); Profit attributable to owners of parent: ¥60.5B (+13% YoY).

• Gross profit increased to ¥250.1B from ¥234.4B YoY; comprehensive income surged 76.2% to ¥86.7B.

• Operating margin slightly decreased to 13.1% (-0.2pt YoY); ROE improved to 11.4% (+0.5pt YoY); ROIC decreased to 9.6% (-0.4pt YoY).

• R&D expenses: ¥29.1B (+¥0.2B YoY); CAPEX: ¥22.1B (-¥0.8B YoY); Depreciation and amortization: ¥20.4B (+¥0.5B YoY).

• Cash and cash equivalents at year-end rose to ¥160.8B, up ¥23.6B; EPS increased to ¥209.39.

Outlook and guidance

• FY2026 guidance projects sales of ¥575.0B (+3% YoY) and OP of ¥76.0B (+3% YoY), aiming for record highs despite uncertainties in the Middle East and global risks.

• Ordinary profit expected at ¥75.0B (-9% YoY); Net profit at ¥55.0B (-9% YoY).

• R&D expenses to rise to ¥30.5B (+¥1.4B YoY); CAPEX to ¥25.0B (+¥2.9B YoY).

• Annual dividend projected to rise to ¥70 per share, marking the 13th consecutive increase.

• Tescan's performance not included in guidance as transaction closing is pending.