Canon Inc.
Second Quarter 2026 Results
July 27, 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
◼ 2Q/1H 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
2Q/1H 2026 Review
◼ Market conditions remained weak in Europe, affected by Middle East
situation, and in the U.S., where tariff impact persists. In printing
equipment market, trend of postponed investment continued
◼ Net sales rose 3.6%, reaching record high for second quarter, driven
by continued sales growth in compact camera and network camera
businesses, and revenue growth in semiconductor lithography
equipment driven by memory-related demand
◼ Higher costs resulting from rise in memory prices and Middle East
situation, absorbed by refunds on additional U.S. tariff and yen
depreciation
◼ Increased operating profit by 35.2% to 159.2 billion yen
2
In the markets we serve, amid an uncertain economic outlook, demand remained
weak in both Europe, which continues to be affected by the Middle East situation,
and the U.S., where the impact of tariffs persists. In the printing equipment market,
customers continued to defer investment decisions.
On the other hand, compact cameras, which are gaining popularity especially
among younger users, and network cameras, which continue to achieve strong
growth as their use cases expand, both posted significant sales growth this quarter.
In addition, revenue from semiconductor lithography equipment also increased,
driven by increased sales to memory customers with strong investment demand.
Furthermore, as both the U.S. dollar and the euro were more than 10% stronger
against the yen than in the previous year, overall net sales rose 3.6%, reaching a
record high for a second quarter.
Higher memory prices and increased costs for raw materials and other inputs
resulting from rising oil prices were absorbed by refunds on additional U.S. tariff
and yen depreciation. As a result, operating profit increased 35.2% year on year to
159.2 billion yen, and the operating profit ratio improved to 13.5%.
2
P&L
(2Q/1H 2026 Results)
2Q
2026
1st Half
2025
% Change
2026
2025
Actual
Actual
1st Half
% Change
(Billions of yen)
Actual
Actual
Net Sales
1,180.9
1,140.2
+3.6%
2,274.5
2,198.6
+3.5%
+15.5%
+8.4%
Gross Profit
617.7
534.8
1,122.9
1,035.7
(% of Net Sales)
52.3%
46.9%
49.4%
47.1%
Op. Expenses
458.5
417.0
892.3
821.4
(% of Net Sales)
38.8%
36.6%
39.3%
37.4%
230.6
214.3
10.1%
9.7%
252.1
171.2
222.3
155.9
Op. Profit
159.2
117.8
(% of Net Sales)
13.5%
10.3%
IBT
Net Income
177.3
122.9
123.5
83.7
+35.2%
+43.6%
+46.9%
(% of Net Sales)
10.4%
7.3%
7.5%
7.1%
USD
159.50
185.35
144.59
163.82
158.27
184.54
148.34
162.23
EUR
+7.6%
+13.4%
+9.8%
3
Second-quarter net sales increased by 3.6% to 1 trillion 180.9 billion yen, reaching a
new record high.
Despite the rise in memory and raw material costs, our gross profit ratio improved
by 5.4 points, owing to the weaker yen and refunds on additional U.S. tariff.
Operating expenses as a percentage of net sales increased by 2.2 points. This
increase reflects the depreciation of the yen, as well as base salary increases, higher
development expenses in cameras and in growth areas such as network cameras, as
well as restructuring costs.
As a result, operating profit increased by 35.2% to 159.2 billion yen, income before
income taxes increased by 43.6% to 177.3 billion yen, and net income increased by
46.9% to 122.9 billion yen. Our net income ratio also improved to a double-digit
level of 10.4%.
For the first half of the year, net sales increased by 3.5% to 2 trillion 274.5 billion yen,
reaching a record high. Operating profit rose by 7.6% to 230.6 billion yen, while net
income increased by 9.8% to 171.2 billion yen, resulting in higher sales and profits.
3
2Q 2026 Operating Profit Analysis
(2Q 2026 Actual versus 2Q 2025 Actual)
Change in Net Sales, excluding
FX impact, for reference
-18.6
Printing:
-16.3
Medical:
+14.3
Imaging:
-15.0
Industrial:
-3.8
Others:
-39.4
Total:
(Billions of yen)
+28.9
-4.7
-3.7
-1.4
+58.0
-8.8
-11.5
-15.4
117.8
2025
Actual
159.2
FX Details
+93.4
Net Sales:
Cost of Sales: -32.2
Op. Expenses: -32.3
FX
Sales Volume
/Product Mix
Pricing
Cost
Op. Expense
Middle East
Impact
Memory Impact
Tariff Impact
2026
Actual
+41.4 billion yen（+35.2%）
4
The yen depreciated by more than 10 yen against both the U.S. dollar and the euro.
As a result, foreign exchange rates had a positive impact of 28.9 billion yen.
As for changes in sales volume and product mix, the negative impact was limited to
4.7 billion yen, reflecting the fact that the deterioration in the Printing and Industrial
businesses was offset by the highly profitable Imaging business, while sales of
higher-priced camera models also increased.
Pricing had a negative impact of 3.7 billion yen. Lower sales and higher raw material
prices both stemming from the Middle East situation had a negative impact of 11.5
billion yen, while higher memory prices had a negative impact of 15.4 billion yen.
However, these negative factors were offset by a positive impact of 58.0 billion yen
from U.S. tariff refunds.
Operating expenses increased by 8.8 billion yen compared to the same period last
year, primarily due to base salary increases, higher development expenses, and 7.1
billion yen in restructuring costs.
As a result, operating profit increased by 35.2% to 159.2 billion yen.
4
2Q/1H 2026 Financial Results by Business Unit
1st Half
2Q
(Billions of yen)
Printing
Medical
Imaging
2025
Actual
Actual
% Change
2026
2025
Actual
Actual
% Change
Net Sales
629.4
610.6
+3.1%
1,239.9
1,221.6
+1.5%
Op. Profit
97.6
76.9
+26.9%
157.5
150.0
+5.0%
(%)
(15.5%)
(12.6%)
(12.7%)
(12.3%)
Net Sales
135.4
142.0
-4.6%
277.4
279.3
-0.7%
Op. Profit
3.1
5.1
-38.5%
8.3
11.8
-29.2%
(%)
(2.3%)
(3.6%)
(3.0%)
(4.2%)
Net Sales
306.8
260.7
+17.7%
552.7
472.8
+16.9%
Op. Profit
69.8
39.1
+78.7%
97.6
70.3
+38.8%
(22.8%)
(15.0%)
(17.7%)
(14.9%)
Net Sales
78.3
92.4
-15.3%
145.2
159.8
-9.1%
Op. Profit
12.6
17.7
-28.7%
17.4
26.1
-33.1%
(%)
Industrial
2026
(%)
(16.1%)
(19.2%)
(12.0%)
(16.3%)
Others &
Net Sales
59.0
60.7
-2.7%
112.9
116.7
-3.2%
Corporate
Op. Profit
-24.4
-20.8
-
-50.0
-44.2
-
Eliminations
Net Sales
-28.0
-26.2
-
-53.6
-51.6
-
Op. Profit
0.5
-0.2
-
-0.2
0.3
-
Net Sales
1,180.9
1,140.2
+3.6%
2,274.5
2,198.6
+3.5%
+35.2%
230.6
214.3
+7.6%
(10.1%)
(9.7%)
Total
Op. Profit
159.2
117.8
(%)
(13.5%)
(10.3%)
5
As for the Printing Group, the market slowdown caused by uncertainty about the economic
outlook is gradually easing. In commercial printing, printing companies have resumed
investment, leading to increased sales of continuous-feed presses and high-speed cut-sheet
presses. Sales negotiations for office MFDs have also become more active, resulting in
revenue growth for the Business Unit as a whole.
For the Medical Group, sales increased in emerging markets such as Southeast Asia and
Latin America due to the acquisition of large-scale orders. However, overall sales declined
owing to issues arising from the production system transition implemented in April, together
with the impact of a disruption at a supplier, prevented the timely procurement of
components needed for production, resulting in significant delays in product supply.
Next, the Imaging Group, starting with cameras. Sales increased significantly, driven by
strong demand for compact cameras, which continued from the first quarter.
For interchangeable-lens cameras, revenue increased as sales of full-frame models, led by
the EOS R6 Mark III launched last November, grew compared with the first quarter, resulting
in a higher average selling price.
Network cameras also saw strong growth, driven primarily by data center and commercial
real estate project installations. Revenue increased by more than 20%, outpacing the strong
growth recorded in the first quarter. As a result, revenue for the Imaging Group as a whole
increased significantly, rising 17.7% year on year.
For the Industrial Group, overall revenue declined due to lower sales of display
manufacturing equipment, reflecting panel manufacturers' postponement of investment
decisions last year. However, revenue from semiconductor lithography equipment grew,
driven by strong sales of back-end advanced packaging systems and KrF lithography
systems for memory applications.
Nanoimprint lithography, which is being promoted as a next-generation semiconductor
manufacturing technology, also made steady progress toward volume-production
deployment. Additional systems were shipped in June to customers conducting evaluation
and verification activities.
5
2026 Outlook
◼ Raised operating profit projection by 9.0 billion yen, to reflect uncertain
factors not included in previous projection
Negative factors
◼ Impact from Middle East situation: Negative 34.6 billion yen
• Expected normalization of sales now pushed back to October or
later
• Incorporated expected increase in costs for oil-related raw
materials, components, and transportation
◼ Additional 6.0 billion yen increase in cost due to rise in memory prices
Positive factors
◼ U.S. tariff impact, including refund: Positive 37.5 billion yen
◼ Foreign exchange impact: Positive 34.1 billion yen
• 2026 2nd half Assumptions - USD 150 yen to 155 yen, EUR 175 yen
to 180 yen
6
We revised our outlook to reflect certain factors that could affect our performance,
which were not included in our previous forecast due to limited visibility at the time.
First, regarding the impact of the Middle East situation, we have assumed that
current conditions will continue through the end of September, given the
uncertainty surrounding when the situation may be resolved. Based on this
assumption, we have revised down our sales and profit forecasts and incorporated
the expected increase in costs for oil-related raw materials, components, and
transportation. The total negative impact is estimated at 34.6 billion yen. Reflecting
the latest memory price trends, higher memory prices are expected to increase costs
by 6.0 billion yen compared with our previous plan.
On the positive side, the impact of U.S. tariffs, including tariff refunds, is expected to
be a positive 37.5 billion yen. In addition, we revised our assumed exchange rates for
the second half from the previous plan to 155 yen to the U.S. dollar and 180 yen to
the euro, reflecting a 5 yen depreciation of the yen against both currencies, resulting
in a positive impact of 34.1 billion yen.
As a result, the negative factors, including lower sales volumes in the Printing,
Medical, and Industrial businesses, were almost entirely offset by the positive factors,
and operating profit is now projected to be 465.0 billion yen, 9.0 billion yen higher
than in our previous projection.
In the second half of the year, the impact of higher memory and raw material costs
is expected to increase. However, with sales of new products in the Printing business
gaining momentum and shipments of semiconductor lithography equipment for
memory applications increasing, we aim to expand sales, supported by the
continued strong performance of our network camera and camera businesses.
6
2026 Financial Projection
(Full Year)
2026
(Billions of yen)
Current
Projection
2025
Actual
2026
% Change
Previous
Projection
Amount
Change
Net Sales
4,800.0
4,624.7
+3.8%
4,765.0
+35.0
Gross Profit
2,268.0
2,162.0
+4.9%
2,219.0
+49.0
(% of Net Sales)
47.3%
46.7%
46.6%
Op. Expenses
1,803.0
1,706.6
1,763.0
(% of Net Sales)
37.6%
36.9%
37.0%
Op. Profit
465.0
455.4
(% of Net Sales)
9.7%
9.8%
IBT
Net Income
492.0
340.0
482.1
332.1
(% of Net Sales)
7.1%
7.2%
7.0%
USD
156.56
149.71
151.58
EUR
182.08
169.41
176.82
+2.1%
456.0
-40.0
+9.0
9.6%
+2.1%
+2.4%
483.0
333.0
USD
EUR
+9.0
+7.0
Impact of exchange rate movement
（3Q-4Q impact given a one yen change）
Net Sales
6.8 billion yen
3.3 billion yen
Op. Profit
1.5 billion yen
1.5 billion yen
7
We have raised our net sales projection by 35.0 billion yen to 4.8 trillion yen, up
3.8% compared to last year. We have also raised our operating profit projection by
9.0 billion yen to 465.0 billion yen, up 2.1% compared to last year, and our net
income projection by 7.0 billion yen to 340.0 billion yen, up 2.4% compared to 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
-23.7
Printing:
-43.8
Medical:
-0.7
Imaging:
-9.3
Industrial:
+15.0
Others:
-62.5
Total:
(Billions of yen)
+34.1
+14.7
+1.2
-0.8
-37.1
456.0
2026
Previous
Projection
+37.5
-34.6
-6.0
FX Details
Net Sales: +117.4
Cost of Sales: -43.0
Op. Expenses: -40.3
FX
Sales Volume
/Product Mix
465.0
Pricing
Cost
Op. Expense
Middle East
Impact
Memory Impact
Tariff Impact
2026
Current
Projection
+9.0 billion yen (+2.0%)
8
The foreign exchange impact is expected to be a positive 34.1 billion yen for the full
year, as the exchange rate assumptions for the second half have been revised from
the previous plan to reflect a 5 yen depreciation of the yen against both the U.S.
dollar and the euro.
We now expect the Middle East situation to have a negative impact of 34.6 billion
yen on earnings. This reflects a delay in the expected recovery of sales, with
normalization now assumed to occur after October instead of June, as well as higher
costs for production materials due to rising oil prices and increases in utility and
logistics expenses.
For memory, reflecting the latest price trends, the impact of memory costs is
expected to worsen by 6.0 billion yen compared with our previous plan. As memory
prices are expected to take some time to normalize, we will closely monitor future
price trends and seek to mitigate the negative impact as much as possible through
price increases and additional cost reductions.
On the positive side, earnings will benefit from tariff refunds of 37.5 billion yen as
well as measures we will pursue to generate an additional 14.7 billion yen in cost
reductions.
8
Review of Business Structure
(Billions of yen)
2025
1Q
2026
Full
2Q
2026
Full year
Year
1Q
2Q
Full year
Current
Previous
Projection
Projection
Sales
Structural
Reform
Production
Structural
Reform
Cost
Effect
PL Impact
Cost
Effect
PL Impact
-1.2
5.0
3.8
-0.9
0
-0.9
-0.5
4.9
4.4
-0.1
0
-0.1
-7.9
22.0
14.1
-14.7
0
-14.7
-0.7
0.8
0.1
-0.8
0.3
-0.5
-2.0
2.1
0.1
-13.6
0.7
-12.9
-15.1
8.2
-6.9
-20.4
14.4
-6.0
-14.4
4.7
-9.7
-12.4
14.0
1.6
Medical
Business
Innovation
Cost
Effect
PL Impact
-0.7
1.5
0.8
-0.7
2.2
1.5
-3.6
11.5
7.9
-0.3
1.0
0.7
-0.1
3.0
2.9
-0.7
10.0
9.3
-1.2
10.0
8.8
Total
Cost
-2.8
-1.3
-26.2
-1.8
-15.7
-36.2
-28.0
Effect
PL Impact
6.5
3.7
7.1
5.8
33.5
7.3
2.1
0.3
5.8
-9.9
32.6
-3.6
28.7
0.7
9
With regard to sales operations, we are carrying out organizational restructuring
and reviewing the balance between direct and indirect sales in each country across
Europe. This year, we expect to incur costs of 15.1 billion yen, while benefits of 8.2
billion yen are expected, primarily in the second half of the year. In the next fiscal
year, the benefits are expected to significantly exceed the associated costs.
As for production structure reforms, we have been accelerating site consolidation
since the second half of last year. We incurred costs of 13.6 billion yen in the second
quarter and expect to incur costs of 20.4 billion yen for the full year. These initiatives
are expected to generate annual benefits of 14.4 billion yen through cost reductions
in administrative and other indirect functions.
As for Medical, we accelerated our transformation by integrating Canon Medical
Systems into Canon Inc. on April 1. These initiatives generated benefits of 3.0 billion
yen in the second quarter. We have completed service-operation efficiency
improvements, including the consolidation of overseas call centers. In the second
half of the year, we will further reduce external spending and implement additional
measures, with the goal of delivering a full-year profit contribution of 10.0 billion
yen.
9
2026 Financial Projection by Business Unit
(Full Year)
(Billions of yen)
2026
2025
Current
Projection
Actual
2026
Previous
Projection
% Change
Amount
Change
Net Sales
2,544.2
2,494.4
+2.0%
2,526.8
+17.4
Op. Profit
256.0
255.8
+0.1%
254.5
+1.5
(%)
(10.1%)
(10.3%)
Net Sales
568.2
580.6
-2.1%
601.4
-33.2
Op. Profit
22.8
32.8
-30.4%
38.2
-15.4
(4.0%)
(5.6%)
Net Sales
1,201.5
1,054.9
+13.9%
1,158.5
+43.0
Op. Profit
191.5
172.9
+10.8%
176.5
+15.0
(%)
(15.9%)
(16.4%)
Net Sales
353.7
361.1
-2.1%
361.5
-7.8
Op. Profit
60.3
62.5
-3.6%
63.1
-2.8
(%)
(17.0%)
(17.3%)
Others &
Net Sales
241.3
237.1
+1.8%
214.4
Corporate
Op. Profit
-65.9
-69.5
-
-75.5
+9.6
Eliminations
Net Sales
-108.9
-103.4
-
-97.6
-11.3
Printing
Medical
(%)
Imaging
Industrial
Total
(10.1%)
(6.4%)
(15.2%)
(17.5%)
+26.9
Op. Profit
0.3
0.9
-
-0.8
+1.1
Net Sales
4,800.0
4,624.7
+3.8%
4,765.0
+35.0
+2.1%
456.0
+9.0
Op. Profit
465.0
455.4
(%)
(9.7%)
(9.8%)
(9.6%)
10
As for the Printing Group, we will capitalize on the recovering market environment, with new
products driving sales in the second half of the year. In commercial printing, we are
expanding our lineup of high-speed cut-sheet presses. In addition to the new B3-format
varioPRINT iX1700, we plan to launch the B2-format varioPRESS iV7.
In addition, for office MFDs, we will round out the imageFORCE product lineup by expanding
it to include lower-speed models and aim to achieve revenue growth in the second half of
the year. As a result, we plan to increase sales for the Business Unit as a whole by 2.0%.
As for Medical, we are making every effort to resolve product supply delays caused by
shortages in components procurement and expect production to normalize in September,
with sales recovering from the fourth quarter onward. Order intake remains strong in
emerging markets and the United States, and we aim to make up for lost sales by delivering
products to customers as quickly as possible.
Next, the Imaging Group, starting with cameras. The EOS R6 Mark III, which was launched in
November last year, achieved strong sales growth in the first half of the year. In addition,
with the launch in June of the EOS R6 V, a camera aimed at video creators, we will drive
revenue growth in the second half through expanded sales of full-frame models.
For compact cameras as well, we will further increase production volumes in the second half
of the year and aim to achieve full-year sales growth of more than 50%.
For network cameras, in a market that continues to grow, we will leverage our strong sales
network and extensive product lineup to increase sales, and achieve a 13.9% increase in
revenue for the Imaging Group as a whole.
For the Industrial Group, against the backdrop of expanding AI demand and the resulting
need for capital investment in memory-related production, we are increasing production of
semiconductor lithography equipment. In particular, we plan a significant increase in revenue
by doubling sales of KrF lithography systems in the second half of the year compared with
the same period last year.
Orders for semiconductor deposition equipment have also increased, primarily for HBMrelated applications, and we expect revenue growth from this business as well.
10
Inventory
◼ Utilize inventory built up since end of last year following year-end sales season to
support sales expansion in second half
◼ Plan to maintain higher-than-normal inventory levels at year-end in preparation for next year
2025
(Amt: Billions of yen) Mar.-end Jun.-end
2026
Change
Sep.-end Dec.-end Mar.-end Jun.-end
vs 25 Jun. vs 25 Dec.
Amt.
334.4
346.1
368.1
342.1
355.8
375.3
+29.2
+33.2
Days
47
52
55
49
51
55
+3
+6
Amt.
139.8
138.5
148.5
142.4
149.1
156.8
+18.3
+14.4
Days
85
90
99
86
88
103
+13
+17
Amt.
176.3
166.4
172.1
170.3
214.0
223.7
+57.3
+53.4
Days
66
64
61
53
68
74
+10
+21
Amt.
150.7
160.3
154.7
130.0
133.5
140.1
-20.2
+10.1
Days
146
183
159
118
133
176
-7
+58
Amt.
71.6
68.2
70.4
55.6
61.3
65.6
-2.6
+10.0
Amt.
872.8
879.5
913.8
840.4
913.7
961.5
+82.0
+121.1
Days
68
73
74
63
69
77
+4
+14
Printing
Medical
Imaging
Industrial
Others &
Corporate
Total
11
Inventory at the end of June 2026 increased by 47.8 billion yen from the end of
March to 961.5 billion yen. This reflects the weaker yen, which increased the value of
foreign currency-denominated assets, the buildup of inventories, primarily in the
Printing, Imaging, and Semiconductor Lithography Equipment businesses, to
support sales growth in the second half of the year, and the advance procurement
of memory and semiconductor components that are currently in short supply.
Finished goods inventory is expected to decline to an appropriate level by year-end
following the peak sales season in the second half. However, raw materials and
work-in-process inventories are expected to remain at strategically elevated levels.
This reflects production ramp-ups for Semiconductor Lithography Equipment to
support increased shipments next year and the early procurement of required
memory components amid tight supply conditions.
11
Cash Flow
(Full Year)
◼ Generate 545.0 billion yen in operating CF, significantly exceeding last year’s level
◼ Invest in growth areas and deliver proactive, stable shareholder returns
(Billions of yen)
Net income
2026
Current
Projection
2026
Previous
Projection
2025
2024
Actual
Actual
340.0
333.0
332.1
325.1
Depreciation and amortization
Others
Net cash provided by operating activities
230.0
-25.0
545.0
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
-255.0
290.0
-270.0
330.0
-237.4
238.5
-297.3
309.5
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents
-445.0
-6.0
-394.0
-11.0
-179.2
25.1
-226.0
16.7
Net change in cash and cash equivalents
-161.0
-75.0
84.4
100.2
Cash and cash equivalents at end of period
Cash-on-hand (In months of Net sales)
425.0
1.0
511.0
1.3
586.0
1.4
501.6
1.3
- 2024 net income excludes the impact of impairment loss.
12
Despite strategically building up component inventories, we plan to generate 545.0
billion yen in operating cash flow, again significantly exceeding that of the previous
year.
As for the usage of cash, we are giving top priority to investments for future growth.
In addition to a new factory in Utsunomiya for semiconductor lithography
equipment, where increasing production capacity is an urgent need, we are also
making aggressive investments in areas such as medical equipment and network
cameras.
As for shareholder returns, in addition to maintaining a full-year dividend of 160 yen
per share, we are also carrying out the 200.0 billion yen share buyback program
authorized in January, demonstrating our commitment to proactive and stable
shareholder returns.
12
Return on Capital
◼ ROE for 2026 projected to be 9.8%
◼ Advance efforts to enhance capital efficiency and profitability toward achieving Phase VII
targets
14%
ROE
12%
PBR
9.4%
(4.8% including
Impairment Loss)
10%
7.9%
8%
6%
8.2%
9.8%
1.4x
1.2x
1.1x
1.0x
0.8x
Cost of Capital 5% to 6％
0.9x
4%
2%
8.1%
9.7%
3.2%
0%
2020
2021
2022
2023
2024
2025
2026
13
Net income is expected to increase by approximately 8.0 billion yen compared with
last year. In addition, the reduction in shareholders' equity resulting from the 200.0
billion yen share buyback will further support ROE. As a result, ROE is expected to
reach 9.8% this year.
Even amid ongoing economic uncertainty, we will steadily advance the structural
reforms currently underway and aim to achieve the ROE targets we set out in Phase
VII—12% in 2028 and 15% in 2030—by strengthening our ability to generate profits
and improving capital efficiency.
13
Summary
◼ In 2026 – first year of five-year plan – deliver higher revenue and profit,
while elevating management quality to lay foundation for future 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
4.80T
5.0T
1,000
800
3.51T
3
Operating
Profit
2
353.4B
281.9B
1,200
375.4B
444.9B
455.4B
465.0B
600
400
200
1
0
0
2021
2022
2023
2024
2025
- 2024 excludes the impact of impairment loss.
2026
2028
2030
14
The Middle East situation and the outlook for the global economy remain uncertain,
and the business environment surrounding us continues to be challenging due to
factors such as rising memory and raw material costs. Nevertheless, by leveraging
our strong cost management capabilities and solid business foundation, we aim to
achieve sales and profit growth again this year.
We are steadily advancing our medium- to long-term initiatives such as structural
reforms as planned. Guided by the theme “Achieving New Growth Through
Innovations in Productivity,” we will pursue further growth while continuing to
enhance management quality as we work toward achieving the management targets
set out in our five-year initiative – Phase VII of the Excellent Global Corporation Plan.
14
Supplementary Information
2026 Operating Profit Analysis
(FY 2026 Projection versus FY 2025 Actual )
(Billions of yen)
+55.8
+18.6
+4.4
+15.9
-6.8
+39.6
-48.5
455.4
FY 2025
Actual
Change in Net Sales, excluding FX
impact, for reference
-47.0
Printing:
-31.2
Medical:
+64.1
Imaging:
-9.2
Industrial:
-2.5
Others:
-25.8
Total:
FX Details
Net Sales: +195.9
Cost of Sales: -64.7
Op. Expenses: -75.4
FX
Sales Volume
/Product Mix
Pricing
Cost
Op. Expense
Middle East
Impact
-69.4
465.0
Memory Impact Tariff Impact
FY 2026
Projection
+9.6 billion yen（+2.1%）
15
15
Printing
Net Sales & Net Sales Growth Rate Y/Y
(Billions of yen)
2Q
2026
2025
Actual
Actual
Production
Office
Prosumer
Full Year
2026
Current
Projection
%
Change
2025
Actual
%
Change
2026
Previous
Projection
Amount
Change
116.1
103.3
+12.4%
469.0
437.3
+7.3%
468.3
+0.7
Office MFDs
167.4
161.2
+3.8%
653.3
631.6
+3.4%
643.9
+9.4
Others
111.1
104.2
+6.7%
454.2
432.1
+5.1%
446.4
+7.8
278.5
265.4
+4.9%
1,107.5
1,063.7
+4.1%
1,090.3
+17.2
LPs
152.2
160.4
-5.1%
619.4
648.1
-4.4%
617.2
+2.2
IJPs
82.6
81.5
+1.3%
348.3
345.3
+0.9%
351.0
-2.7
234.8
241.9
-3.0%
967.7
993.4
-2.6%
968.2
-0.5
629.4
610.6
+3.1%
2,544.2
2,494.4
+2.0%
2,526.8
+17.4
+26.9%
256.0
255.8
+0.1%
254.5
+1.5
10.1%
10.3%
Net Sales
Op. Profit
97.6
76.9
%
15.5%
12.6%
Net Sales Growth Rate Y/Y
(Local Currency)
10.1%
Unit Growth Rate Y/Y
2026
2026
Full Year
2Q
Full Year
Projection
Production
+1.2%
+1.6%
Office
-2.3%
0.0%
Prosumer
-10.9%
-6.2%
Total
-5.1%
-2.2%
2Q
Projection
Office MFDs
-7%
-4%
LPs
-9%
-3%
IJPs
-11%
-7%
16
Production
As for commercial printing, while customers continued to postpone investment up
to and including the first quarter, particularly in Europe and the United States,
market conditions began to recover as printing companies resumed investment in
digital printing equipment to improve productivity. As a result, sales of large
continuous-feed and cut-sheet systems increased in the second quarter, and
revenue returned to growth.
In the second half of the year, as improving market conditions and growing
contributions from new products accelerate our growth, we aim to achieve 7.3%
revenue growth for the full year.
Our varioPRINT iX3200 has already established itself as the industry-standard inkjet
cut-sheet press. Going forward, we will further accelerate sales of the varioPRINT
iX1700, which offers an attractive balance of price and performance, and plan to
launch the varioPRESS iV7, a higher-productivity model capable of printing media
up to B2 size. By expanding our lineup across a broader range of price and
performance levels, we aim to capture a wider range of demand from printing
companies transitioning to digital printing.
16-1
Printing
Net Sales & Net Sales Growth Rate Y/Y
(Billions of yen)
2Q
2026
2025
Actual
Actual
Production
Office
Prosumer
Full Year
2026
Current
Projection
%
Change
2025
Actual
%
Change
2026
Previous
Projection
Amount
Change
116.1
103.3
+12.4%
469.0
437.3
+7.3%
468.3
+0.7
Office MFDs
167.4
161.2
+3.8%
653.3
631.6
+3.4%
643.9
+9.4
Others
111.1
104.2
+6.7%
454.2
432.1
+5.1%
446.4
+7.8
278.5
265.4
+4.9%
1,107.5
1,063.7
+4.1%
1,090.3
+17.2
LPs
152.2
160.4
-5.1%
619.4
648.1
-4.4%
617.2
+2.2
IJPs
82.6
81.5
+1.3%
348.3
345.3
+0.9%
351.0
-2.7
234.8
241.9
-3.0%
967.7
993.4
-2.6%
968.2
-0.5
629.4
610.6
+3.1%
2,544.2
2,494.4
+2.0%
2,526.8
+17.4
+26.9%
256.0
255.8
+0.1%
254.5
+1.5
10.1%
10.3%
Net Sales
Op. Profit
97.6
76.9
%
15.5%
12.6%
Net Sales Growth Rate Y/Y
(Local Currency)
10.1%
Unit Growth Rate Y/Y
2026
2026
Full Year
2Q
Full Year
Projection
Production
+1.2%
+1.6%
Office
-2.3%
0.0%
Prosumer
-10.9%
-6.2%
Total
-5.1%
-2.2%
2Q
Projection
Office MFDs
-7%
-4%
LPs
-9%
-3%
IJPs
-11%
-7%
16
Office MFDs
For office MFDs, hardware sales continued to face challenging conditions in the
second quarter, particularly in Europe and the United States, due to weak market
conditions resulting from U.S. tariffs and the Middle East situation. However, service
and consumables revenue, which reflects print volumes, is tracking in line with
expectations, and recent customer discussions regarding hardware sales have
shown improvement, supporting sales in the second half of the year.
The new imageFORCE series has received high praise for its basic features such as
image quality, energy efficiency, and ease of maintenance. In June, we rounded out
the lineup by introducing the low-speed imageFORCE C3100. In the second half of
the year, we will address a broad range of customer needs with a comprehensive
lineup that includes low- and mid-speed models at more accessible price points and
aim to increase sales over the full year by encouraging customers to replace older
models as well as competitor products.
Office Other
In the IT solutions business, investment in digital transformation and security
enhancement remains active, and demand continues to be strong. Supported by
this, we continued to deliver revenue growth in the second quarter, primarily in
Japan.
16-2
Printing
Net Sales & Net Sales Growth Rate Y/Y
(Billions of yen)
2Q
2026
2025
Actual
Actual
Production
Office
Prosumer
Full Year
2026
Current
Projection
%
Change
2025
Actual
%
Change
2026
Previous
Projection
Amount
Change
116.1
103.3
+12.4%
469.0
437.3
+7.3%
468.3
+0.7
Office MFDs
167.4
161.2
+3.8%
653.3
631.6
+3.4%
643.9
+9.4
Others
111.1
104.2
+6.7%
454.2
432.1
+5.1%
446.4
+7.8
278.5
265.4
+4.9%
1,107.5
1,063.7
+4.1%
1,090.3
+17.2
LPs
152.2
160.4
-5.1%
619.4
648.1
-4.4%
617.2
+2.2
IJPs
82.6
81.5
+1.3%
348.3
345.3
+0.9%
351.0
-2.7
234.8
241.9
-3.0%
967.7
993.4
-2.6%
968.2
-0.5
629.4
610.6
+3.1%
2,544.2
2,494.4
+2.0%
2,526.8
+17.4
+26.9%
256.0
255.8
+0.1%
254.5
+1.5
10.1%
10.3%
Net Sales
Op. Profit
97.6
76.9
%
15.5%
12.6%
Net Sales Growth Rate Y/Y
(Local Currency)
10.1%
Unit Growth Rate Y/Y
2026
2026
Full Year
2Q
Full Year
Projection
Production
+1.2%
+1.6%
Office
-2.3%
0.0%
Prosumer
-10.9%
-6.2%
Total
-5.1%
-2.2%
2Q
Projection
Office MFDs
-7%
-4%
LPs
-9%
-3%
IJPs
-11%
-7%
16
Prosumer
As for printers, market conditions continue to be weak, particularly in Europe and
the United States, due to the impact of U.S. tariffs and the Middle East situation. As
a result, the printer market is expected to contract by 5% to 6% in 2026 compared
with last year.
As for laser printers, second-quarter sales were below the same period last year,
particularly in Europe and the United States. However, we continue to expand our
product lineup in terms of performance and price points. In addition to the new
products launched in the first half of the year with high-speed printing and
document-processing capabilities, we will strengthen our portfolio with products
that fill gaps in our lineup while concentrating our sales efforts on markets with
high print volumes.
As for inkjet printers, second-quarter sales were below the same period last year as
inventory adjustments in the market, primarily for consumables, lasted longer than
expected, partly due to the worsening Middle East situation.
In the second half of the year, we will continue expanding sales of refillable ink tank
models, particularly in Asia, our largest market for these models. In addition, the
new cartridge models launched last year are gaining traction, and by increasing
sales of mid-range models, we aim to raise our average selling price and achieve
revenue growth.
16-3
Printing Hardware & Non-hardware Sales
Net Sales Growth Rate of Printing Hardware & Non-hardware
2026
Hardware
+12%
-12%
Full Year
Actual
-4%
Non-hardware
+13%
+6%
-4%
+1%
Hardware
+1%
+4%
-7%
-5%
Non-hardware
+1%
+1%
0%
0%
Hardware
+1%
+4%
-7%
-5%
Non-hardware
+6%
+3%
-4%
0%
Hardware
-8%
-2%
-2%
-5%
Non-hardware
-2%
-1%
0%
0%
Hardware
-7%
-5%
-17%
-12%
Non-hardware
-4%
-4%
-7%
0%
Hardware
-15%
-8%
-12%
-12%
Non-hardware
-11%
-7%
0%
+1%
Hardware
+3%
-1%
-7%
+2%
Non-hardware
0%
+2%
-10%
-2%
Hardware
-6%
-6%
-2%
+1%
Non-hardware
-9%
-3%
-6%
-3%
2Q
JPY
Production
LC
JPY
Office MFDs
LC
JPY
LPs
LC
JPY
IJPs
LC
2025
Full Year
Projection
+9%
2Q
17
17
Medical
Net Sales & Net Sales Growth Rate Y/Y
(Billions of yen)
2Q
Full Year
2026
2025
Actual
Actual
%
Change
2026
Current
Projection
2025
Actual
%
Change
2026
Previous
Projection
Amount
Change
Net Sales
135.4
142.0
-4.6%
568.2
580.6
-2.1%
601.4
-33.2
Op. Profit
3.1
5.1
-38.5%
22.8
32.8
-30.4%
38.2
-15.4
%
2.3%
3.6%
4.0%
5.6%
6.4%
Net Sales Growth Rate Y/Y
(Local Currency)
2026
Full Year
2Q
Total
-12.0%
Projection
-6.2%
18
Medical
In the second quarter, revenue declined due to issues arising from the production
system transition implemented in April and a disruption at a supplier, which
prevented us from procuring components required for production on schedule and
resulted in significant delays in delivering products that had been ordered. We
expect production to normalize around September, and sales are expected to
recover from the fourth quarter onward as supply returns to normal.
As for orders, order intake in emerging markets remains solid. In the United States, a
key market for us, we continue to win orders from leading hospitals with which we
have strong relationships. We are prioritizing the rapid restoration of product supply
and are committed to returning the business to a growth trajectory.
The photon-counting CT system that was initially launched in Japan in April of this
year has also received certification in Europe and is now being marketed there. This
next-generation CT system, which incorporates our proprietary technology and has
the potential to expand diagnostic capabilities, is attracting strong interest, and we
have already received inquiries from many leading medical institutions, including
those in Germany. Strengthening relationships with medical institutions is also
helping to stimulate discussions regarding other diagnostic equipment. Going
forward, we expect this to contribute to sales growth.
18
Imaging
Net Sales & Net Sales Growth Rate Y/Y
(Billions of yen)
2Q
2026
2025
Actual
Actual
Full Year
%
Change
2026
Current
Projection
2025
Actual
2026
Previous
Projection
%
Change
Amount
Change
Cameras
175.4
155.4
+12.9%
698.0
625.5
+11.6%
674.8
+23.2
Network Cameras & Others
131.4
105.3
+24.8%
503.5
429.4
+17.3%
483.7
+19.8
Net Sales
306.8
260.7
+17.7%
1,201.5
1,054.9
+13.9%
1,158.5
+43.0
Op. Profit
69.8
39.1
+78.7%
191.5
172.9
+10.8%
176.5
+15.0
%
22.8%
15.0%
15.9%
16.4%
15.2%
Digital Interchangeable Lens Cameras (DILCs)
Units (Millions) & Unit Growth Rate Y/Y
Net Sales Growth Rate Y/Y
(Local Currency)
2026
2026
Full Year
2Q
Full Year
Projection
Cameras
+1.1%
+5.4%
NWCs & Others
+12.6%
+11.3%
Total
+5.7%
+7.8%
2Q
Projection
Units (Millions)
0.67
2.80
Growth Rate
-10%
-3%
19
Cameras
The compact camera market continues to expand, driven by the growing number of
new camera users, particularly among younger consumers. As for the
interchangeable-lens camera market, while we lowered our outlook to reflect the
impact of the Middle East situation, we still expect the market to reach 6.45 million
units.
In the second quarter, compact camera sales increased significantly as we were able
to meet strong demand through the production expansion implemented in the
second half of last year.
For interchangeable-lens cameras, sales of full-frame models increased significantly
compared with the first quarter, led by the EOS R6 Mark III, which was launched in
November last year. Combined with an increase in the average selling price, this
resulted in revenue growth of 12.9% year on year.
In the second half of the year, for compact cameras, which continue to perform
strongly, we will further expand production capacity to eliminate supply shortages
as quickly as possible and drive additional sales growth. For interchangeable-lens
cameras, in addition to the EOS R6 Mark III, which contributed to sales growth in the
first half of the year, we will strengthen sales of full-frame models, led by the EOS R6
V, a full-frame mirrorless camera for video creators launched in June. As a result, we
aim to achieve full-year revenue growth of 11.6% for the camera business.
19-1
Imaging
Net Sales & Net Sales Growth Rate Y/Y
(Billions of yen)
2Q
2026
2025
Actual
Actual
Full Year
%
Change
2026
Current
Projection
2025
Actual
2026
Previous
Projection
%
Change
Amount
Change
Cameras
175.4
155.4
+12.9%
698.0
625.5
+11.6%
674.8
+23.2
Network Cameras & Others
131.4
105.3
+24.8%
503.5
429.4
+17.3%
483.7
+19.8
Net Sales
306.8
260.7
+17.7%
1,201.5
1,054.9
+13.9%
1,158.5
+43.0
Op. Profit
69.8
39.1
+78.7%
191.5
172.9
+10.8%
176.5
+15.0
%
22.8%
15.0%
15.9%
16.4%
15.2%
Digital Interchangeable Lens Cameras (DILCs)
Units (Millions) & Unit Growth Rate Y/Y
Net Sales Growth Rate Y/Y
(Local Currency)
2026
2026
Full Year
2Q
Full Year
Projection
Cameras
+1.1%
+5.4%
NWCs & Others
+12.6%
+11.3%
Total
+5.7%
+7.8%
2Q
Projection
Units (Millions)
0.67
2.80
Growth Rate
-10%
-3%
19
Network cameras
The network camera market is expected to continue growing strongly. In addition to
the security sector, which continues to expand due to strong demand for safety and
security, advances in AI-powered video analytics are expanding the use of network
cameras beyond security into areas such as marketing support and operational
efficiency in manufacturing and production environments.
In the second quarter, revenue grew by more than 20%, exceeding the growth rate
achieved in the strong first quarter. Growth was driven by data centers, which
continued to benefit from AI-related investment, as well as by large-scale projects,
particularly in the commercial real estate sector.
In the second half of the year, we aim to outpace the market by fully leveraging our
strong sales partner network and driving sales through our broad product lineup
and integrated hardware-and-software solutions. As a result, we are targeting fullyear double-digit revenue growth of 17.3%.
19-2
Industrial
Net Sales & Net Sales Growth Rate Y/Y
(Billions of yen)
2Q
2026
2025
Actual
Actual
Full Year
%
Change
2026
Current
Projection
2025
Actual
2026
Previous
Projection
%
Change
Amount
Change
Optical Equipment
61.9
61.2
+1.0%
262.2
256.4
+2.3%
260.1
+2.1
Industrial Equipment
16.4
31.2
-47.3%
91.5
104.7
-12.7%
101.4
-9.9
Net Sales
78.3
92.4
-15.3%
353.7
361.1
-2.1%
361.5
-7.8
Op. Profit
12.6
17.7
-28.7%
60.3
62.5
-3.6%
63.1
-2.8
%
16.1%
19.2%
17.0%
17.3%
Net Sales Growth Rate Y/Y
(Local Currency)
17.5%
Lithography Equipment (Units)
2026
2026
Full Year
Full Year
2Q
Projection
Opt. Equip.
+0.1%
+1.8%
Industrial Equip.
-48.5%
-13.3%
Total
-16.2%
-2.6%
2Q
Semiconductor
FPD
Projection
KrF
17
70
i-line
31
157
48
227
6
20
20
Optical equipment
Semiconductor manufacturing equipment
The semiconductor lithography equipment market, driven by expanding AI-related
demand, continues to grow, led by the memory and logic segments, and we expect
the market to continue expanding through next year.
We sold 48 semiconductor lithography systems in the second quarter, primarily for
AI-related back-end advanced packaging and memory applications. For KrF systems
in particular, we are increasing production capacity, and by doubling unit sales in
the second half compared with the same period last year, we expect significant
revenue growth. We are building on this momentum to drive further growth in unit
sales in 2027.
As for nanoimprint lithography, which we are promoting as a next-generation
semiconductor manufacturing technology, we shipped additional systems in June to
customers conducting evaluation and verification. As we work toward massproduction adoption in 2027, we have moved into the production validation phase,
using customer wafers under conditions that simulate actual manufacturing lines.
Multiple customers are advancing validation activities for mass production, and we
expect this progress to support additional shipments going forward.
20-1
Industrial
Net Sales & Net Sales Growth Rate Y/Y
(Billions of yen)
2Q
2026
2025
Actual
Actual
Full Year
%
Change
2026
Current
Projection
2025
Actual
2026
Previous
Projection
%
Change
Amount
Change
Optical Equipment
61.9
61.2
+1.0%
262.2
256.4
+2.3%
260.1
+2.1
Industrial Equipment
16.4
31.2
-47.3%
91.5
104.7
-12.7%
101.4
-9.9
Net Sales
78.3
92.4
-15.3%
353.7
361.1
-2.1%
361.5
-7.8
Op. Profit
12.6
17.7
-28.7%
60.3
62.5
-3.6%
63.1
-2.8
%
16.1%
19.2%
17.0%
17.3%
Net Sales Growth Rate Y/Y
(Local Currency)
17.5%
Lithography Equipment (Units)
2026
2026
Full Year
Full Year
2Q
Projection
Opt. Equip.
+0.1%
+1.8%
Industrial Equip.
-48.5%
-13.3%
Total
-16.2%
-2.6%
2Q
Semiconductor
FPD
Projection
KrF
17
70
i-line
31
157
48
227
6
20
20
Optical equipment
FPD (Flat Panel Display) lithography equipment
The display manufacturing equipment market is expected to contract temporarily in
2026 as panel manufacturers delayed investment decisions in response to U.S. tariffs
and rising memory prices.
We sold six FPD lithography systems in the second quarter and plan to sell 20 units
for the full year. In addition to new investments in IT panel production, investments
in smartphone displays are supporting demand as smartphones continue to
become more advanced and thinner. Panel manufacturers are making progress
toward resuming investments, and the number of business opportunities continue
to increase. This is strengthening our outlook, and we expect unit sales to grow
further in 2027.
Industrial Equipment
OLED display manufacturing equipment is expected to generate lower revenue as
panel manufacturers continue to postpone investments. In contrast, semiconductor
deposition systems are benefiting from strong AI-related demand, with orders
increasing significantly, particularly for memory production applications such as
HBM. As a result, we expect sales growth.
20-2
