Canon shares fall sharply for fourth straight day after lowering fiscal 2026 profit forecast on rising memory costs

CANON INC. <7751> fell sharply for the fourth consecutive day, hitting a new year-to-date low. The decline came after the company announced after trading ended on the 23rd a downward revision to its consolidated earnings forecast for the fiscal year ending December 2026, lowering operating profit from 479.0 billion yen to 456.0 billion yen (up 0.1% year-on-year) and net profit from 341.0 billion yen to 333.0 billion yen (up 0.3% year-on-year). While the company maintained its revenue forecast of 4,765.0 billion yen (up 3.0% year-on-year), it incorporated the impact on sales related to the Middle East situation through May and factored in rising memory costs.

Simultaneously announced first quarter (January-March) results showed revenue of 1,093.6 billion yen (up 3.3% year-on-year), operating profit of 71.37 billion yen (down 26.1% year-on-year), and net profit of 48.303 billion yen (down 33.1% year-on-year). While the printing business was significantly affected by weak market conditions, demand for cameras and network cameras remained firm. The semiconductor lithography equipment business also benefited from a rapid increase in investment appetite for memory-related products. However, profits were pressured by rising memory costs, the impact of additional U.S. tariffs, and an increased proportion of low-margin products and customers.

Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.