Olympus (7733) investor relations material

Executive summary

• Q4 and FY2026 saw strong sales in North America, EMEA, and APAC, led by new product launches and operational execution, while China and Japan faced challenges but are targeted for recovery.

• FY2026 was a rebuilding year, absorbing ~¥30B in FDA-related import alerts and ship-holds, with above-revised guidance delivered despite disruptions.

• Strategic review announced for the surgical business segment to align with growth and margin aspirations, with all options being considered.

• Strategic initiatives and cost discipline are showing early positive results, setting a credible baseline for future growth.

• The Orthopedic Business was divested and classified as a discontinued operation from Q1 FY2026.

Financial highlights

• FY2026 revenue: ¥1,010.7B (+1% YoY); adjusted operating profit: ¥143.3B (-24% YoY); adjusted operating margin: 14.2% (-4.7pp YoY).

• Q4 revenue: ¥295.3B (+9% YoY); adjusted operating margin: 18.1% (-4.1pp YoY).

• Cost of sales increased 13.7% YoY, with the cost-to-sales ratio deteriorating by 3.8 points to 35.3% due to U.S. tariffs and sales mix.

• Adjusted EPS: ¥92 (-21% YoY); adjusted free cash flow: ¥53.5B (-51% YoY).

• Other expenses surged due to ¥26,900 million in global restructuring costs and impairment losses on intangible and development assets.

Outlook and guidance

• FY2027 revenue guidance: ¥1,055.0B–¥1,076.0B (+4.4% to +6.5% YoY); adjusted operating margin: 15.2%–16.7% (+1.0pp to +2.5pp YoY).

• Adjusted EPS guidance: ¥106–¥119 (+15% to +29% YoY).

• H1 FY2027: slower growth as ship-hold impacts normalize; H2: accelerated growth from ship-hold resolution, new product launches, and operating model savings.

• Annual dividend guidance is maintained at ¥30 per share for FY2027.

• Growth is expected from the Gastrointestinal Solutions business, with improved profitability as one-time effects subside and cost management strengthens.