Yamaha (7951) Q1 2026 earnings summary

Executive summary

• Q1 revenue declined 7.4% year-over-year to ¥103.9 billion, mainly due to slow recovery in musical instruments, weaker audio equipment sales, yen appreciation, and U.S. tariffs.

• Core operating profit dropped 49.2% year-over-year to ¥4.7 billion, with net profit falling 74.7% to ¥2.4 billion.

• Full-year earnings forecast revised downward to reflect anticipated U.S. tariffs and market softness, despite planned countermeasures.

Financial highlights

• Q1 revenue was ¥103.9 billion, down from ¥112.1 billion year-over-year; core operating profit was ¥4.7 billion (OP ratio 4.5%), net profit ¥2.4 billion.

• Gross profit for Q1 was ¥38.7 billion, down from ¥45.2 billion year-over-year.

• Cash and cash equivalents at period end rose to ¥103.2 billion, up from ¥98.0 billion a year earlier.

• Operating cash flow was ¥5.1 billion, down from ¥11.1 billion year-over-year.

• Total assets decreased 1.5% to ¥582.4 billion; equity ratio improved to 76.3%.

Outlook and guidance

• Full-year revenue forecast revised down to ¥452.0 billion, with core operating profit expected at ¥32.0 billion and net profit at ¥22.5 billion.

• EPS guidance lowered to ¥49.63 for FY2026.3.

• Tariffs expected to have a ¥11.2 billion negative impact, partially offset by ¥6.2 billion in countermeasures and ¥2 billion from piano manufacturing reforms.

• Strategic investments in growth areas are increasing SG&A by ¥1.3 billion.

• Dividend per share forecasted at ¥26.00 post-split.