Canon Inc.
First Quarter 2026 Results
April 23, 2026
This presentation contains forward-looking statements with respect to future results, performance and achievements that are subject to risk and uncertainties and reflect management’s views and
assumptions formed by available information. All statements other than statements of historical fact are statements that could be considered forward-looking statements. When used in this
document, words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “project” or “should” and similar expressions, as they relate to Canon, are intended to identify
forward-looking statements. Many factors could cause the actual results, performance or achievements of Canon to be materially different from any future results, performance or achievements
that may be expressed or implied by such forward-looking statements, including, among others, changes in general economic and business conditions, changes in currency exchange rates and
interest rates, introduction of competing products by other companies, lack of acceptance of new products or services by Canon’s targeted customers, inability to meet efficiency and cost
reduction objectives, changes in business strategy and various other factors, both referenced and not referenced in this presentation. Should one or more risks or uncertainties materialize, or
should underlying assumptions prove incorrect, actual results may vary materially from those described herein. Canon does not intend or assume any obligation to update these forward-looking
statements.
Agenda
◼ 1Q 2026 Results
P 2-5
◼ FY 2026 Projection
P 6-10
◼ Financial Situation
P 11-13
◼ Summary
◼ Supplementary Information
P 14
P 15-20
1
1
1Q 2026 Review
◼ Trend of postponed investment due to additional U.S. tariffs and rise
in geopolitical risks continued, compounded by deteriorating
situation in Middle East
◼ While Printing Group significantly impacted by weak market
conditions, demand for cameras and network cameras remained
strong and sharp rise in willingness to invest in semiconductor
lithography equipment for memory device production
◼ Sales were sluggish in Americas and Europe, but strong in Japan and
Asia
◼ Net sales up 3.3% YoY, and achieved record high 1Q
◼ Profit down 26.1% due to higher memory costs, additional U.S. tariffs,
and increase in sales of lower profit products and sales to channels
with lower margins
2
Since the second half of last year, the trend of customers postponing investments
linked to additional U.S. tariffs and rising geopolitical risks, compounded by the
worsening situation in the Middle East, showed no signs of being resolved in the
first quarter. As a result, sales remained sluggish, mainly in Printing.
Meanwhile, despite global uncertainty, camera sales remained solid as new users
joined the market, and demand for network cameras continued to grow strongly,
resulting in double digit Imaging Group sales growth. In addition, in our
semiconductor business, the willingness to invest in semiconductor manufacturing
equipment for memory applications has risen sharply, and we are currently
increasing production as much as possible to enable early delivery to customers.
By region, in Europe, which includes the Middle East and in the United States, that
are parties to the conflict, corporate investment and personal consumption declined,
leading to a decrease in sales. Meanwhile, sales in Japan, China, and other parts of
Asia remained solid.
As a result, we achieved record-high first quarter sales overall, with revenue growth
of 3.3% compared with the same period last year.
Regarding profits, there were negative impacts such as rising memory costs and
additional U.S. tariffs. In addition, due to an increase in sales of lower profit products
and sales to channels with lower margins, operating profit declined by 26.1% to 71.4
billion yen.
2
P&L
(1Q 2026 Results)
2026
2025
(Billions of yen)
Actual
Actual
Net Sales
1,093.7
1,058.4
■Gross Profit Ratio
% Change
+3.3%
1Q 2025
47.3%
FX Impact
+1.7pt
Selling Price
+0.1pt
Cost Increase
-0.3pt
Tariff Impact
-0.9pt
Gross Profit
505.3
500.9
(% of Net Sales)
46.2%
47.3%
Product Mix
-1.7pt
Total Difference
-1.1pt
Op. Expenses
433.9
404.4
(% of Net Sales)
39.7%
38.2%
Op. Profit
71.4
96.5
(% of Net Sales)
6.5%
9.1%
IBT
Net Income
74.7
48.3
98.8
72.2
(% of Net Sales)
4.4%
6.8%
156.95
183.64
152.41
160.51
USD
EUR
+0.9%
1Q 2026
46.2%
-26.1%
■Operating Expenses Ratio
-24.4%
-33.1%
1Q 2025
FX Impact
Others
Total Difference
1Q 2026
38.2%
-0.8pt
-0.7pt
-1.5pt
39.7%
3
First-quarter net sales increased by 3.3% to 1 trillion 93.7 billion yen, marking a new
record high.
As for gross profit, although changes in exchange rates had a positive effect, as a
percentage of net sales, it declined by 1.1 points due to higher memory costs, the
impact of additional U.S. tariffs that began to be felt in the second half of last year,
and an increase in sales of lower profit products and sales to channels with lower
margins. With regard to operating expenses, it deteriorated by 1.5 points, due to an
increase in the yen converted amount of foreign currency denominated expenses
due to the weaker yen, as well as base salary increases in personnel costs and higher
development expenses in growth areas such as cameras and network cameras.
As a result, operating profit decreased by 26.1% to 71.4 billion yen, income before
income taxes decreased by 24.4% to 74.7 billion yen, and net income decreased by
33.1% to 48.3 billion yen.
3
1Q 2026 Operating Profit Analysis
(1Q 2026 Actual versus 1Q 2025 Actual)
Change in Net Sales, excluding
FX impact, for reference
-41.8
Printing:
-0.2
Medical:
+16.8
Imaging:
-2.4
Industrial:
-3.0
Others:
-30.6
Total:
(Billions of yen)
+18.7
+1.5
2025
Actual
Cost:
-19.1
Pricing: +17.5
+0.8
-33.5
96.5
Tariff Impact
-5.1
-2.2
FX Details
Net Sales:
+54.4
Cost of Sales: -11.2
Op. Expenses: -24.5
FX
Sales Volume
-3.7
-1.6
71.4
Pricing
Cost
Op. Expense
/Product Mix
Middle East
Impact
Memory Impact
Tariff Impact
2026
Actual
-25.1 billion yen（-26.1%）
4
Changes in exchange rates had a positive impact of 18.7 billion yen, reflecting the
depreciation of the yen, particularly against the euro.
As for changes in sales volumes and product mix, sales for cameras and network
cameras increased. On the other hand, sales of the Printing Group declined mainly
due to the decrease in sales of high margin OEM laser printers, and production
printers with higher average selling prices. This resulted in a negative impact of 33.5
billion yen.
With regard to selling prices, there was a positive impact of 1.5 billion yen, and cost
savings through normal cost reduction activities was a positive 0.8 billion yen.
However, the increase in memory prices had a negative impact of 3.7 billion yen.
Expenses increased by 5.1 billion yen compared with the same period last year due
to higher base wages and development costs.
With regard to U.S. tariffs, whose impact began to fully materialize in the second half
of last year, we covered most of the 19.1 billion yen cost increase through pricing
measures amounting to 17.5 billion yen. However, this still resulted in a negative
impact of 1.6 billion yen.
As a result of all these factors, operating profit decreased by 26.1% to 71.4 billion
yen.
4
1Q 2026 Financial Results by Business Unit
(Billions of yen)
Printing
Medical
Imaging
2025
Actual
Actual
% Change
Net Sales
610.5
611.0
-0.1%
Op. Profit
59.9
73.1
-18.0%
(%)
(9.8%)
(12.0%)
Net Sales
142.1
137.3
+3.4%
Op. Profit
5.2
6.7
-22.2%
(%)
(3.7%)
(4.9%)
Net Sales
245.9
212.1
+15.9%
Op. Profit
27.8
31.2
-11.1%
(11.3%)
(14.7%)
Net Sales
67.0
67.5
-0.7%
Op. Profit
4.8
8.4
-42.6%
(7.2%)
(12.4%)
(%)
Industrial
2026
(%)
Others &
Net Sales
53.9
56.0
Corporate
Op. Profit
-25.6
-23.5
-
Eliminations
Net Sales
-25.7
-25.5
-
Total
-3.8%
Op. Profit
-0.7
0.6
-
Net Sales
1,093.7
1,058.4
+3.3%
71.4
96.5
-26.1%
(6.5%)
(9.1%)
Op. Profit
(%)
5
As for the Printing Group, the impact of U.S. tariffs and the situation in the Middle East
have made the business environment increasingly uncertain. As a result, the
postponement of customer investment continued and sales declined, particularly for
hardware such as commercial printing equipment and laser printers. As for office MFDs,
while hardware sales were flat, thanks to steady performance in consumables and
solutions businesses, sales of the Printing Group overall remained in line with the
previous year.
In the Medical Group, sales in emerging markets remained strong, supported by the
acquisition of large deals in Indonesia, Malaysia, and Brazil. However, sales in the United
States, Japan, and China were constrained by delays in the installation of large-scale
equipment and other factors. As a result, overall sales growth was limited to 3.4%.
Meanwhile, the intake of new orders that will contribute to future sales increased by
approximately 7% compared with the same period last year, mainly thanks to Europe.
In respect to the Imaging Group, sales of compact cameras increased significantly as
production was ramped up in response to strong demand and a substantial backlog of
orders. Overall, camera sales rose by 13% compared to the same period last year,
supported by continued strong performance of entry level mirrorless models and
growth in full frame mirrorless camera sales, led by the EOS R6 Mark III launched in
November last year.
For network cameras, amid continued expansion in global demand, we expanded sales,
primarily in Europe and the United States, which led to sales increasing by nearly 20%,
continuing the strong performance seen since the fourth quarter of last year. As a result,
the Imaging Group as a whole achieved a 15.9% increase in sales compared to the same
period last year.
In the Industrial Group, sales declined slightly due to restrained investment toward
power semiconductor device production in China. However, the willingness to invest is
rising rapidly for memory-related applications as well as for back-end semiconductor
processes, and we are ramping up production of semiconductor lithography equipment
with the aim of recognizing sales in the second half of the year.
5
2026 Outlook
2026 global situation uncertain and hard to forecast
<Key Assumptions>
◼ Memory needed for this year mostly secured, but expect a negative
impact of approximately 50 billion yen
◼ Impact on sales through May, assuming early resolution of Middle
East situation
◼ Potential increases in raw material and transportation costs are
excluded from current assumptions due to limited visibility; any
further cost increases will be addressed through pricing, cost
reduction, and expense control
◼ As positive factor, current U.S. tariff rate of 10% to continue through
late July
◼ FX rates from 2Q onward: 1USD=150 yen, 1euro=175 yen
6
Global conditions have been highly volatile from the beginning of this year, and
since our earnings announcement in January, a number of developments have
occurred that have had an impact on our business performance. However, as many
of these factors remain uncertain and difficult to forecast, our current outlook has
been formulated based on the following assumptions.
First, memory prices have risen sharply over the past four months since the start of
the year. By leveraging multiple procurement channels, we have secured nearly all of
the memory required for this year. However, an increase in costs is unavoidable, and
we expect a negative impact of approximately 50 billion yen compared with our
previous projection.
As for the situation in the Middle East, sales in the region account for approximately
2% of our total and are not material. Based on the assumption of an early resolution
of the conflict, we revised our plan to reflect lower sales and profits through May.
At this stage, we have not assumed any cost increases for oil based materials,
components, or transportation. However, should costs rise further, we will address
the impact through price increase, cost reduction, and expense control.
Compared with our previous projection, a positive factor is U.S. tariffs. We have
factored into our profit and loss forecast the assumption that the current 10% tariff
rate will remain in place through late July.
For exchange rates from the second quarter onward, we assume 150 yen against the
U.S. dollar and 175 yen against the euro.
6
2026 Financial Projection
(Full Year)
2026
(Billions of yen)
Current
Projection
2025
Actual
2026
% Change
Previous
Projection
Amount
Change
Net Sales
4,765.0
4,624.7
+3.0%
4,765.0
+0
Gross Profit
2,219.0
2,162.0
+2.6%
2,239.0
-20.0
(% of Net Sales)
46.6%
46.7%
47.0%
Op. Expenses
1,763.0
1,706.6
1,760.0
(% of Net Sales)
37.0%
36.9%
36.9%
Op. Profit
456.0
455.4
(% of Net Sales)
9.6%
9.8%
IBT
Net Income
483.0
333.0
482.1
332.1
(% of Net Sales)
7.0%
7.2%
7.2%
USD
151.58
149.71
150.00
EUR
176.82
169.41
175.00
+0.1%
479.0
-3.0
-23.0
10.1%
+0.2%
+0.3%
495.0
341.0
USD
EUR
-12.0
-8.0
Impact of exchange rate movement
（2Q-4Q impact given a one yen change）
Net Sales
10.0 billion yen
5.2 billion yen
Op. Profit
2.3 billion yen
2.3 billion yen
7
Sales are expected to increase by 3.0% to 4 trillion 765.0 billion yen, unchanged
from our previous projection. While we will offset part of the increased memory
costs (approximately 50.0 billion yen) and the impact of the Middle East conflict
(approximately 5.0 billion yen) through internal efforts, operating profit has been
revised downward by 23.0 billion yen from our previous projection to 456.0 billion.
Although our projections for income before income taxes as well as net income
have also been revised downward, we remain committed to achieving continued
profit growth while maintaining the positive momentum we have built since last
year.
7
2026 Operating Profit Analysis
(FY 2026 Current Projection versus FY 2026 Previous Projection)
Change in Net Sales, excluding FX
impact, for reference
-14.0
Printing:
-15.3
Medical:
+13.0
Imaging:
-0.1
Industrial:
-0.8
Others:
-17.2
Total:
(Billions of yen)
+9.9
+3.3
+0.5
Tariff Impact
Cost:
+13.3
Pricing:
-3.9
+10.2
+9.4
-5.4
-0.6
-50.3
479.0
2026
Previous
FX Details
+39.3
Net Sales:
Cost of Sales: -16.0
Op. Expenses: -13.4
FX
Sales Volume
456.0
Pricing
Cost
Op. Expense
Middle East
/Product Mix
Impact
Projection
Memory Impact Tariff Impact
2026
Current
Projection
-23.0 billion yen (-4.8%)
8
As for the impact of exchange rates, our exchange rate assumptions from the
second quarter onward remain unchanged from our previous projection, with the
U.S. dollar at 150 yen and the euro at 175 yen. However, due to the yen’s
depreciation in the first quarter, the full year impact is expected to be a positive 9.9
billion yen.
The impact of the situation in the Middle East is expected to be a negative 5.4 billion
yen, taking into account the adverse effects on sales and profit through May.
As for the impact from memory devices, reflecting the latest price trends, we expect
a decline in profit of 50.3 billion yen compared to our previous plan. While we have
factored in 3.3 billion yen in cost reductions and 10.2 billion yen in expense
reductions as internal measures, these efforts do not fully offset the negative impact
of rising memory prices.
As for tariffs, reflecting the decrease in the rate to 10% until the latter half of July we
modified the projected negative impact by 9.4 billion yen compared with our
previous plan.
Consequently, the decline in operating profit compared to our previous projection is
expected to be 23.0 billion yen, bringing operating profit to 456.0 billion yen.
8
Review of Business Structure
(Billions of yen)
2025
2026
Full
Year
1Q
1Q
2026
Full year
Current
Projection
Full year
Previous
Projection
Sales
Cost
-1.2
-7.9
-0.7
-14.4
-17.2
Structural
Effect
5.0
22.0
0.8
4.7
11.5
Reform
PL Impact
3.8
14.1
0.1
-9.7
-5.7
Production
Cost
-0.9
-14.7
-0.8
-12.4
-14.2
Structural
Effect
0
0
0.3
14.0
13.0
Reform
PL Impact
-0.9
-14.7
-0.5
1.6
-1.2
Medical
Cost
-0.7
-3.6
-0.3
-1.2
-1.2
Business
Effect
1.5
11.5
1.0
10.0
10.0
Innovation
PL Impact
0.8
7.9
0.7
8.8
8.8
Total
Cost
-2.8
-26.2
-1.8
-28.0
-32.6
Effect
6.5
33.5
2.1
28.7
34.5
PL Impact
3.7
7.3
0.3
0.7
1.9
9
With regard to the sales structural reform, we are promoting the reorganization of
our sales structure and a review of the balance between direct and indirect sales on
a country-by-country basis. This year, we expect to incur costs of 14.4 billion yen,
while anticipating benefits of 4.7 billion yen, mainly in the second half of the year.
From next year, these initiatives are expected to contribute to profit on a full year
basis.
As for the production structural reform, we began full scale site consolidation in the
second half of last year. This year, we expect to incur costs of 12.4 billion yen, while
anticipating annual benefits of 14.0 billion yen from cost reductions in administrative
functions.
As for our medical business, effective April 1, Canon Medical Systems Corporation
was split and absorbed by Canon Inc., and under the new organizational structure,
we are accelerating reforms. By rolling out globally the service operation efficiency
initiatives implemented in Japan last year, as well as reducing external expenditure,
we aim to achieve a 10.0 billion yen profit contribution again this year.
9
2026 Financial Projection by Business Unit
(Full Year)
(Billions of yen)
Printing
Medical
Industrial
2025
Actual
2026
Previous
Projection
% Change
Amount
Change
Net Sales
2,526.8
2,494.4
+1.3%
2,532.9
-6.1
Op. Profit
254.5
255.8
-0.5%
257.4
-2.9
(%)
(10.1%)
(10.3%)
Net Sales
601.4
580.6
+3.6%
616.1
-14.7
Op. Profit
38.2
32.8
+16.6%
38.3
-0.1
(6.4%)
(5.6%)
Net Sales
1,158.5
1,054.9
+9.8%
1,137.2
+21.3
Op. Profit
176.5
172.9
+2.1%
184.1
-7.6
(%)
(15.2%)
(16.4%)
Net Sales
361.5
361.1
+0.1%
361.5
0
Op. Profit
63.1
62.5
+0.9%
63.8
-0.7
(%)
Imaging
2026
Current
Projection
(10.2%)
(6.2%)
(16.2%)
(%)
(17.5%)
(17.3%)
Others &
Net Sales
214.4
237.1
-9.6%
212.1
+2.3
Corporate
Op. Profit
-75.5
-69.5
-
-64.7
-10.8
Eliminations
Net Sales
-97.6
-103.4
-
-94.8
-2.8
Op. Profit
-0.8
0.9
-
0.1
-0.9
Net Sales
4,765.0
4,624.7
+3.0%
4,765.0
0
Op. Profit
456.0
455.4
+0.1%
479.0
-23.0
(%)
(9.6%)
(9.8%)
Total
(17.6%)
(10.1%)
10
In the Printing Group, non hardware sales from services and consumables remains relatively
stable, and we are rolling out new products in preparation for a recovery in customer
investment from the latter half of the year. As for commercial printing, we are active in
discussions with customers for the varioPRINT iX1700, that entered full-scale sales this year.
In office MFDs, we plan to introduce lower-speed models to our new imageFORCE series in
order to complete our lineup that offers a price range that is attractive to customers. By
stimulating replacement demands we aim to achieve full year sales growth of 1.3%.
For the Medical Group, in addition to solid sales in emerging markets, we are beginning to
see the results from strengthening our sales structure in the United States, a priority market,
including an increase in orders for ultrasound diagnostic systems resulting from agreements
with new dealers. In Europe, we are also seeing signs of recovery in orders, and we aim to
achieve a 3.6% increase in full year sales for the entire Group. In April we launched sales of
our next generation CT system, photon counting CT. By leveraging this innovative new
product, we will first enhance our presence in the Japanese CT market and furthermore
extend this momentum to drive growth across our other diagnostic systems.
For the Imaging Group, starting with cameras, despite factors such as the deteriorating
situation in the Middle East and rising memory prices, sales of cameras will be expanded by
building on strong performance of entry level models among new camera users, particularly
younger customers, while also strengthening the lineup of full frame models. For compact
cameras, we aim for a significant increase in sales by further expanding production going
forward.
As for network cameras, in addition to security related demand, strong market growth is
expected to continue, supported by expansion into a variety of applications. Supported by
this, we aim to achieve a 9.8% increase in sales for the Imaging Group as a whole.
In the Industrial Group, supported by strong AI related demand, sales of semiconductor
lithography equipment is expected to reach 238 units exceeding last year, driven by a
significant increase in equipment for memory applications. Demand for film deposition
equipment is also supported by growth in semiconductor equipment used for memory
production, including HBM. As a result, we expect sales for the business unit as a whole to
be roughly in line with last year. Nanoimprint lithography, which we are promoting as our
next generation technology, has entered the evaluation and validation phase for production
use at a major semiconductor manufacturer. Progress toward mass production adoption in
2027 is proceeding steadily.
10
Inventory
◼ Leverage inventory built up since end of peak selling season of last year to support sales
expansion from 2Q
◼ Maintain supply chain and aim to reduce inventory turnover to below 60 days by end of 2026
2025
(Amt: Billions of yen) Mar.-end Jun.-end
2026
Sep.-end Dec.-end Mar.-end
Change
vs 25 Mar. vs 25 Dec.
Amt.
334.4
346.1
368.1
342.1
355.8
+21.4
+13.7
Days
47
52
55
49
51
+4
+2
Amt.
139.8
138.5
148.5
142.4
149.1
+9.3
+6.7
Days
85
90
99
86
88
+3
+2
Amt.
176.3
166.4
172.1
170.3
214.0
+37.7
+43.7
Days
66
64
61
53
68
+2
+15
Amt.
150.7
160.3
154.7
130.0
133.5
-17.2
+3.5
Days
146
183
159
118
133
-13
+15
Amt.
71.6
68.2
70.4
55.6
61.3
-10.3
+5.7
Amt.
872.8
879.5
913.8
840.4
913.7
+40.9
+73.3
Days
68
73
74
63
69
+1
+6
Printing
Medical
Imaging
Industrial
Others &
Corporate
Total
11
As for inventory, the level as of the end of March 2026 increased from the end of last
year, which was at its lowest after the peak selling season. We will utilize this to
support sales expansion from the second quarter.
Ensuring supply chain stability, including the procurement of raw materials and
components, has become increasingly critical. While appropriately responding to
risks, we will strengthen controls to prevent the buildup of excess inventory and will
aim to reduce inventory turnover to below 60 days by year end.
11
Cash Flow
(Full Year)
◼ Generate 600.0 billion yen in operating CF, well above last year
◼ Continue to invest in future growth and pursue active shareholder returns
(Billions of yen)
Net income
2026
Current
Projection
2025
2024
Actual
Actual
333.0
332.1
325.1
Depreciation and amortization
Others
Net cash provided by operating activities
230.0
37.0
600.0
239.2
-95.4
475.9
235.5
46.2
606.8
Net cash used in investing activities
Free cash flow
-270.0
330.0
-237.4
238.5
-297.3
309.5
Net cash provided by (used in) financing activities
-394.0
-11.0
-179.2
25.1
-226.0
16.7
Effect of exchange rate changes on cash and cash equivalents
Net change in cash and cash equivalents
-75.0
84.4
100.2
Cash and cash equivalents at end of period
Cash-on-hand (In months of Net sales)
511.0
1.3
586.0
1.4
501.6
1.3
- Cash-on-hand (in months of Net sales) for 2024 and 2025 is calculated using second-half net sales. The figure for 2026 is based on full-year net sales.
- 2024 net income excludes the impact of impairment loss.
12
This year, we plan to generate 600 billion yen in operating cash flow, significantly
exceeding last year’s level. Leveraging the cash, we will continue investments in the
new Utsunomiya plant for semiconductor lithography systems for which we are
promoting production expansion amid strong demand. In addition, we will also
actively pursue future oriented capital investments, focusing on growth areas such
as our medical and network camera businesses.
As for shareholder returns, we will continue to carry out active and stable returns by
utilizing the cash generated. With respect to dividends, based on a target payout
ratio of 40%, we have set the dividend at 160 yen per share, the same level as last
year. In addition, we will also proceed with the 200 billion yen share repurchase that
has been already approved.
12
Return on Capital
◼ ROE for 2026 projected to be 9.8%
◼ Continue initiatives to improve return on capital in order to achieve
Phase VII targets
14%
ROE
12%
PBR
9.4%
(4.8% including
10%
Impairment Loss)
7.9%
8.1%
8.2%
6%
1.2x
1.1x
0.8x
Cost of Capital 5% to 6％
0.9x
4%
2%
9.8%
1.4x
8%
1.0x
9.7%
3.2%
0%
2020
2021
2022
2023
2024
2025
2026
13
While we expect only a slight increase in net income, ROE for this year is projected
to be 9.8%. This reflects the reduction in shareholders’ equity resulting from the
previously announced 200 billion yen share repurchase.
In Phase VII, announced in January, we set out plans to increase ROE to 12% by 2028
and to 15% by 2030. Even amid an uncertain business environment, we will work
toward achieving these targets by steadily advancing the structural reforms currently
underway, with the aim of maximizing profits and improving capital efficiency.
13
Summary
◼ In 2026 – first year of five-year plan – further enhance quality of
management to drive additional growth
Operating Profit
（Billions of yen）
Net Sales
(Trillions of yen)
6
5.6T
5
Net Sales
4
4.03T
4.18T
4.51T
4.62T
5.0T
1,000
800
3.51T
3
Operating
Profit
2
4.77T
444.9B
353.4B
281.9B
1,200
455.4B
456.0B
600
375.4B
400
1
200
0
0
2021
2022
2023
2024
2025
- 2024 excludes the impact of impairment loss.
2026
2028
2030
14
The situation in the Middle East and the outlook for the global economy are
becoming increasingly uncertain, making it difficult to clearly define the assumptions
underlying the business environment in which we operate. Nevertheless, by
leveraging our strong cost management capability and solid management
foundation, we will once again overcome these challenges and strive to achieve
higher revenue and profit growth.
This year marks the first year of our five year management plan, Global Excellent
Corporation Plan Phase VII. Even in this challenging environment, under the slogan
“Achieve new growth through innovations in productivity,” we will further enhance
the quality of management to strive for further growth.
14
Supplementary Information
2026 Operating Profit Analysis
(FY 2025 Actual versus FY 2026 Projection)
(Billions of yen)
Tariff Impact
Cost:
Pricing:
+8.2
+61.8
-6.2
+26.1
455.4
FY 2025
Actual
Sales Volume
/Product Mix
-22.6
-5.4
Change in Net Sales, excluding FX
impact, for reference
-25.1
Printing:
+12.2
Medical:
+75.2
Imaging:
-1.5
Industrial:
-18.0
Others:
+42.8
Total:
FX Details
Net Sales:
+81.8
Cost of Sales: -21.7
Op. Expenses: -34.0
FX
-37.4
+39.5
Pricing
Cost
Op. Expense
Middle East
Impact
+2.1
-63.4
456.0
Memory Impact Tariff Impact
FY 2026
Projection
+0.6 billion yen（+0.1%）
15
15
Printing
Net Sales & Net Sales Growth Rate Y/Y
(Billions of yen)
1Q
2026
2025
Actual
Actual
Production
Office
Prosumer
Full Year
2026
Current
Projection
%
Change
2025
Actual
%
Change
2026
Previous
Projection
Amount
Change
99.3
99.9
-0.6%
468.3
437.3
+7.1%
480.3
-12.0
Office MFDs
154.6
149.2
+3.6%
643.9
631.6
+1.9%
639.9
+4.0
Others
116.1
110.9
+4.7%
446.4
432.1
+3.3%
445.0
+1.4
270.7
260.1
+4.1%
1,090.3
1,063.7
+2.5%
1,084.9
+5.4
LPs
158.4
168.0
-5.7%
617.2
648.1
-4.8%
613.1
+4.1
IJPs
82.1
83.0
-1.1%
351.0
345.3
+1.7%
354.6
-3.6
240.5
251.0
-4.2%
968.2
993.4
-2.5%
967.7
+0.5
Net Sales
610.5
611.0
-0.1%
2,526.8
2,494.4
+1.3%
2,532.9
-6.1
Op. Profit
59.9
73.1
-18.0%
254.5
255.8
-0.5%
257.4
-2.9
%
9.8%
12.0%
10.1%
10.3%
Net Sales Growth Rate Y/Y
(Local Currency)
10.2%
Unit Growth Rate Y/Y
2026
2026
Full Year
1Q
Full Year
Projection
Production
-7.9%
+4.6%
Office
-0.8%
+0.7%
Prosumer
-8.4%
-4.0%
Total
-5.1%
-0.5%
1Q
Projection
Office MFDs
-3%
0%
LPs
-11%
-3%
IJPs
-7%
-3%
16
Production
In commercial and industrial printing, supported by expanding demand for shortrun production for a broad range of applications and the need to reduce
operational workloads, the shift toward digital printing methods progresses, and the
digital market segment is expected to continue growing over the medium- to longterm. However, in the current market environment, customers, particularly in the
United States, are continuing to postpone investments.
First-quarter net sales decreased slightly compared to the same period last year, as
sales of digital continuous feed presses and other large-scale systems shifted into
the second quarter. However, this year, we plan to introduce a number of new
products that will broaden our business area and stimulate customers’ willingness to
invest.
In recent years, sales of our high-speed cut sheet inkjet printer, the varioPRINT
iX3200, has grown significantly, and we have now started selling the varioPRINT
iX1700, a new product designed to balance price and productivity.
In addition, the varioPRESS iV7, which supports paper sizes up to B2 and is
scheduled for launch in the near future, has already attracted strong interest from
customers. With this, we plan to further increase our market share in this segment.
From the second quarter onward, through these new products and the expansion
of product supply to our partner, Heidelberg, we aim to achieve full-year net sales
growth of 7.1%.
16-1
Printing
Net Sales & Net Sales Growth Rate Y/Y
(Billions of yen)
1Q
2026
2025
Actual
Actual
Production
Office
Prosumer
Full Year
2026
Current
Projection
%
Change
2025
Actual
%
Change
2026
Previous
Projection
Amount
Change
99.3
99.9
-0.6%
468.3
437.3
+7.1%
480.3
-12.0
Office MFDs
154.6
149.2
+3.6%
643.9
631.6
+1.9%
639.9
+4.0
Others
116.1
110.9
+4.7%
446.4
432.1
+3.3%
445.0
+1.4
270.7
260.1
+4.1%
1,090.3
1,063.7
+2.5%
1,084.9
+5.4
LPs
158.4
168.0
-5.7%
617.2
648.1
-4.8%
613.1
+4.1
IJPs
82.1
83.0
-1.1%
351.0
345.3
+1.7%
354.6
-3.6
240.5
251.0
-4.2%
968.2
993.4
-2.5%
967.7
+0.5
Net Sales
610.5
611.0
-0.1%
2,526.8
2,494.4
+1.3%
2,532.9
-6.1
Op. Profit
59.9
73.1
-18.0%
254.5
255.8
-0.5%
257.4
-2.9
%
9.8%
12.0%
10.1%
10.3%
Net Sales Growth Rate Y/Y
(Local Currency)
10.2%
Unit Growth Rate Y/Y
2026
2026
Full Year
1Q
Full Year
Projection
Production
-7.9%
+4.6%
Office
-0.8%
+0.7%
Prosumer
-8.4%
-4.0%
Total
-5.1%
-0.5%
1Q
Projection
Office MFDs
-3%
0%
LPs
-11%
-3%
IJPs
-7%
-3%
16
Office MFDs
While demand for office MFDs as core printing devices in offices remains solid, the
trend of postponing investments, particularly in Europe and the United States,
triggered by U.S. tariffs, is expected to continue in 2026. As a result, we expect the
overall market to shrink by about 6% in 2026.
Our new imageFORCE series has been highly evaluated by customers and dealers
for its core features such as improved image quality, energy efficiency, and ease of
service and maintenance enabled by new technologies. As a result, the year-on-year
decline in our office MFD hardware sales has narrowed.
From the second quarter onward, with the launch of lower end models completing
our imageFORCE lineup, it will become possible to make full range proposals to
customers and promote replacement purchases. Supported by this, we aim to
increase market share and achieve full year net sales growth.
Office Other
As for our IT solutions business, system integration projects for the manufacturing
industry expanded among large enterprises, and among small- and medium sized
enterprises, DX-related investment increased amid rising security awareness. As a
result, sales continued to grow in the first quarter.
16-2
Printing
Net Sales & Net Sales Growth Rate Y/Y
(Billions of yen)
1Q
2026
2025
Actual
Actual
Production
Office
Prosumer
Full Year
2026
Current
Projection
%
Change
2025
Actual
%
Change
2026
Previous
Projection
Amount
Change
99.3
99.9
-0.6%
468.3
437.3
+7.1%
480.3
-12.0
Office MFDs
154.6
149.2
+3.6%
643.9
631.6
+1.9%
639.9
+4.0
Others
116.1
110.9
+4.7%
446.4
432.1
+3.3%
445.0
+1.4
270.7
260.1
+4.1%
1,090.3
1,063.7
+2.5%
1,084.9
+5.4
LPs
158.4
168.0
-5.7%
617.2
648.1
-4.8%
613.1
+4.1
IJPs
82.1
83.0
-1.1%
351.0
345.3
+1.7%
354.6
-3.6
240.5
251.0
-4.2%
968.2
993.4
-2.5%
967.7
+0.5
Net Sales
610.5
611.0
-0.1%
2,526.8
2,494.4
+1.3%
2,532.9
-6.1
Op. Profit
59.9
73.1
-18.0%
254.5
255.8
-0.5%
257.4
-2.9
%
9.8%
12.0%
10.1%
10.3%
Net Sales Growth Rate Y/Y
(Local Currency)
10.2%
Unit Growth Rate Y/Y
2026
2026
Full Year
1Q
Full Year
Projection
Production
-7.9%
+4.6%
Office
-0.8%
+0.7%
Prosumer
-8.4%
-4.0%
Total
-5.1%
-0.5%
1Q
Projection
Office MFDs
-3%
0%
LPs
-11%
-3%
IJPs
-7%
-3%
16
Prosumer
In the printer market, the impact of U.S. tariffs is being felt mainly in Europe and the
United States. As a result, the overall market, in terms of units, is expected to shrink
by around 3 to 5 percent in 2026.
In the first quarter, although sales of laser printers declined due to the continued
postponement of investment by companies, we intend to stimulate demand by
increasing promotional investments in countries and regions where high print
volume is expected.
From a product perspective, we have launched new products equipped with highspeed printing and document processing capabilities. Going forward, we will
continue to strengthen our competitiveness by filling gaps in our product lineup
and aim for an early recovery in sales.
As for inkjet printers, first quarter sales declined compared to the same period last
year, since we started the year with inventory at a somewhat high level. However, for
refillable ink tank models, which achieved a 10% increase in unit sales last year
following the completion of the lineup, we continued to see solid growth in sales,
particularly in Asia.
From the second quarter onward, in addition to refillable ink tank models, we will
expand sales of new cartridge based models and enhance our lineup of business
oriented products to raise our average selling price and aim for a 1.7% increase in
full-year sales.
16-3
Printing Hardware & Non-hardware Sales
Net Sales Growth Rate of Printing Hardware & Non-hardware
2026
Hardware
-12%
+1%
Full Year
Actual
-4%
Non-hardware
+5%
+4%
+1%
+1%
Hardware
-18%
+10%
0%
-5%
Non-hardware
-3%
+1%
0%
0%
Hardware
0%
+4%
-4%
-5%
Non-hardware
+7%
0%
-5%
0%
Hardware
-7%
+2%
-5%
-5%
Non-hardware
+1%
-2%
-5%
0%
Hardware
-8%
-7%
+17%
-12%
Non-hardware
-4%
-4%
+15%
0%
Hardware
-13%
-8%
+16%
-12%
1Q
JPY
Production
LC
JPY
Office MFDs
LC
JPY
LPs
LC
JPY
IJPs
LC
2025
Full Year
Projection
+12%
1Q
Non-hardware
-7%
-5%
+13%
+1%
Hardware
+2%
+3%
+10%
+2%
Non-hardware
-3%
+1%
-3%
-2%
Hardware
-4%
+1%
+9%
+1%
Non-hardware
-10%
-2%
-4%
-3%
17
17
Medical
Net Sales & Net Sales Growth Rate Y/Y
(Billions of yen)
1Q
Full Year
2026
2025
Actual
Actual
%
Change
2026
Current
Projection
2025
Actual
%
Change
2026
Previous
Projection
Amount
Change
Net Sales
142.1
137.3
+3.4%
601.4
580.6
+3.6%
616.1
-14.7
Op. Profit
5.2
6.7
-22.2%
38.2
32.8
+16.6%
38.3
-0.1
%
3.7%
4.9%
6.4%
5.6%
6.2%
Net Sales Growth Rate Y/Y
(Local Currency)
2026
Full Year
1Q
Total
-1.0%
Projection
+1.9%
18
Medical
In the diagnostic imaging device market, despite concerns that market conditions
may worsen due to the situation in the Middle East, we expect the overall market to
continue growing at a gradual pace in 2026, driven by expansion in the United
States and emerging markets.
In the first quarter, our performance in emerging markets remained solid, with
government contracts secured in Indonesia and Malaysia and large deals won in
Brazil. Meanwhile, the deterioration of the hospital management environment in
Japan continued, and sales in the United States did not grow due to the shift of
large equipment installations to the second quarter. As a result, excluding the effects
of foreign exchange, first quarter sales remained flat compared with the same
period last year.
First quarter order amounts increased by approximately 7% compared to the same
period last year, mainly driven by Europe. In the United States, a priority market,
orders for ultrasound diagnostic systems have been increasing through our
strengthened sales channel resulting from agreements with new dealers. We will
continue to strengthen our sales structure in the United States and emerging
markets to drive sales growth from the second quarter onward and aim for a 3.6%
increase in full-year sales.
In April, we began sales of our next generation photon-counting CT in Japan. It uses
a very different principle for detecting X-rays than conventional CT, which enables
high resolution imaging with reduced radiation exposure, and its ability to
distinguish materials within the body is expected to improve diagnostic accuracy.
With the addition of this groundbreaking new CT to the multi position CT system
launched last year, we aim to enhance our presence and market share in the CT
segment and extend this momentum to drive growth across our other diagnostic
systems.
18
Imaging
Net Sales & Net Sales Growth Rate Y/Y
(Billions of yen)
1Q
2026
2025
Actual
Actual
Full Year
%
Change
2026
Current
Projection
2025
Actual
2026
Previous
Projection
%
Change
Amount
Change
Cameras
133.9
118.1
+13.4%
674.8
625.5
+7.9%
675.3
-0.5
Network Cameras & Others
112.0
94.0
+19.1%
483.7
429.4
+12.6%
461.9
+21.8
Net Sales
245.9
212.1
+15.9%
1,158.5
1,054.9
+9.8%
1,137.2
+21.3
Op. Profit
27.8
31.2
-11.1%
176.5
172.9
+2.1%
184.1
-7.6
%
11.3%
14.7%
15.2%
16.4%
16.2%
Digital Interchangeable Lens Cameras (DILCs)
Units (Millions) & Unit Growth Rate Y/Y
Net Sales Growth Rate Y/Y
(Local Currency)
2026
2026
Full Year
1Q
Full Year
Projection
Cameras
+6.0%
+5.7%
NWCs & Others
+12.2%
+10.3%
Total
+8.7%
+7.6%
1Q
Projection
Units (Millions)
0.54
2.90
Growth Rate
+2%
+1%
19
Cameras
In the interchangeable lens camera market, despite an increase in new users,
particularly among younger generations, the market size is estimated at 6.6 million
units, a 1% decrease compared with last year. This reflects uncertainty in the market
environment stemming from factors such as the situation in the Middle East and
rising memory prices.
As for compact digital cameras, in the first quarter, by increasing production in the
second half of last year, we addressed strong demand and significantly increased
sales. For mirrorless cameras, entry level models such as the EOS R50 V, EOS R50,
and EOS R100, which are compact and lightweight yet capable of serious
photography, have attracted new users, particularly among younger generations.
Full frame models also saw steady sales growth, driven primarily by the new EOS R6
Mark III, which was launched in November of last year. As a result, first-quarter sales
increased by 13.4% compared to the same period last year.
For the full year, while we lowered our unit sales projection for interchangeable lens
cameras due to the uncertain market outlook, we expect the increase in new camera
users to continue, mainly younger users seeking a shooting experience distinct from
that of smartphones. As a result, we expect our sales to exceed last year’s level. With
regard to compact cameras, in order to resolve the supply shortage as quickly as
possible, we will further strengthen our production capacity, significantly expand
sales, and aim for a 7.9% increase in full-year sales for the camera business as a
whole.
19-1
Imaging
Net Sales & Net Sales Growth Rate Y/Y
(Billions of yen)
1Q
2026
2025
Actual
Actual
Full Year
%
Change
2026
Current
Projection
2025
Actual
2026
Previous
Projection
%
Change
Amount
Change
Cameras
133.9
118.1
+13.4%
674.8
625.5
+7.9%
675.3
-0.5
Network Cameras & Others
112.0
94.0
+19.1%
483.7
429.4
+12.6%
461.9
+21.8
Net Sales
245.9
212.1
+15.9%
1,158.5
1,054.9
+9.8%
1,137.2
+21.3
Op. Profit
27.8
31.2
-11.1%
176.5
172.9
+2.1%
184.1
-7.6
%
11.3%
14.7%
15.2%
16.4%
16.2%
Digital Interchangeable Lens Cameras (DILCs)
Units (Millions) & Unit Growth Rate Y/Y
Net Sales Growth Rate Y/Y
(Local Currency)
2026
2026
Full Year
1Q
Full Year
Projection
Cameras
+6.0%
+5.7%
NWCs & Others
+12.2%
+10.3%
Total
+8.7%
+7.6%
1Q
Projection
Units (Millions)
0.54
2.90
Growth Rate
+2%
+1%
19
Network cameras
The network camera market, in addition to the security field, which continues to
grow due to strong demand for safety and security, is expanding into a variety of
applications such as marketing support and production site efficiency through AI
based video analytics. As a result, we expect strong growth to continue even amid
an uncertain economic environment.
In the first quarter, although we expected a downturn following the strong growth
posted last year, we continued strong performance from the fourth quarter of 2025,
achieving nearly 20% sales growth, by steadily expanding sales mainly in Europe and
the United States.
From the second quarter onward, by making full use of our strong network of sales
partners and driving sales growth through comprehensive solutions that combine
our broad product lineup with software, we aim to achieve growth that exceeds the
market and target a double digit increase in sales of 12.6% for the full year.
19-2
Industrial
Net Sales & Net Sales Growth Rate Y/Y
(Billions of yen)
1Q
Full Year
2026
2025
Actual
Actual
%
Change
2026
Current
Projection
2025
Actual
2026
Previous
Projection
%
Change
Amount
Change
Optical Equipment
45.7
50.5
-9.5%
260.1
256.4
+1.5%
256.6
+3.5
Industrial Equipment
21.3
17.0
+25.4%
101.4
104.7
-3.2%
104.9
-3.5
Net Sales
67.0
67.5
-0.7%
361.5
361.1
+0.1%
361.5
0
Op. Profit
4.8
8.4
-42.6%
63.1
62.5
+0.9%
63.8
-0.7
%
7.2%
12.4%
17.5%
17.3%
Net Sales Growth Rate Y/Y
(Local Currency)
17.6%
Lithography Equipment (Units)
2026
2026
Full Year
Full Year
1Q
Projection
Opt. Equip.
-13.0%
+0.7%
Industrial Equip.
+24.8%
-3.3%
-3.5%
-0.4%
Total
1Q
Semiconductor
FPD
Projection
KrF
10
69
i-line
34
169
44
238
6
20
20
Optical equipment
Semiconductor manufacturing equipment
As for the semiconductor lithography equipment market, In 2026, the size of the
semiconductor device market is projected to exceed the 2025 level, as memory and
logic devices used for AI semiconductors in data centers continues to expand. The
semiconductor lithography equipment market is expected to remain at a high level
similar to last year, as the willingness to invest for memory has risen sharply since
the end of last year.
In the first quarter, we sold 44 units. This was largely driven by our back-end process
equipment used for advanced AI related packaging, such as HBM and GPUs. For
memory related equipment, centered on KrF systems, we have received a large
number of inquiries, and in order to meet customer demand for early delivery, we
are moving forward to increase production. We now expect to sell 238 units this
year, up 14 units from our previous projection, and will continue to pursue further
growth in unit sales next year.
As for nanoimprint lithography, our next generation semiconductor manufacturing
equipment, the systems delivered to a major semiconductor manufacturer have
passed basic performance verifications and has now entered the evaluation and
validation phase that simulate actual production, and is making steady progress
toward mass production in 2027.
20-1
Industrial
Net Sales & Net Sales Growth Rate Y/Y
(Billions of yen)
1Q
Full Year
2026
2025
Actual
Actual
%
Change
2026
Current
Projection
2025
Actual
2026
Previous
Projection
%
Change
Amount
Change
Optical Equipment
45.7
50.5
-9.5%
260.1
256.4
+1.5%
256.6
+3.5
Industrial Equipment
21.3
17.0
+25.4%
101.4
104.7
-3.2%
104.9
-3.5
Net Sales
67.0
67.5
-0.7%
361.5
361.1
+0.1%
361.5
0
Op. Profit
4.8
8.4
-42.6%
63.1
62.5
+0.9%
63.8
-0.7
%
7.2%
12.4%
17.5%
17.3%
Net Sales Growth Rate Y/Y
(Local Currency)
17.6%
Lithography Equipment (Units)
2026
2026
Full Year
Full Year
1Q
Projection
Opt. Equip.
-13.0%
+0.7%
Industrial Equip.
+24.8%
-3.3%
-3.5%
-0.4%
Total
1Q
Semiconductor
FPD
Projection
KrF
10
69
i-line
34
169
44
238
6
20
20
Optical equipment
FPD (Flat Panel Display) lithography equipment
In 2026, the market for display manufacturing equipment is expected to temporarily
contract due to the impact of decisions made last year by panel manufacturers to
postpone investments in order to assess the effects of U.S. tariffs.
In the first quarter, we sold six units of our FPD lithography equipment, in line with
the same period of last year. For the full year, we plan to sell 20 units, supported by
new investment in IT panels as well as demand for higher performance and thinner
smartphone designs. As panel manufacturers move toward resuming capital
investment, the number of potential business opportunities is gradually increasing,
and we expect unit sales to increase next year.
Industrial equipment
For OLED display manufacturing equipment, we expect to see a decline in sales due
to the impact of panel manufacturers postponing investment, similar to FPD
lithography equipment. However, for deposition equipment, supported by strong AI
demand, semiconductor equipment used in the production of HBM and other
products is growing, and sales are expected to continue increasing from the second
quarter onward.
20-2
