Sharp (6753) Q1 2027 earnings summary

Executive summary

• Q1 FY2026 net sales were ¥435.2 billion, down 7.9% year-over-year, with profits declining due to higher component prices and a weaker yen.

• Operating profit was ¥8.2 billion, down 46.3% year-over-year, but exceeded the previous quarter; bottom-line profit remained positive at ¥3.1 billion, down 88.6%.

• Equity ratio rose to 20.2% at the end of June 2026, the highest since Q3 FY2022.

• Comprehensive income decreased 34.8% year-over-year to ¥13.1 billion.

Financial highlights

• Gross profit for Q1 FY2026 was ¥100.8 billion, down from ¥104.4 billion year-over-year.

• Operating margin dropped to 1.9% from 3.2% year-over-year.

• Basic EPS for Q1 FY2026 was ¥4.80, compared to ¥41.95 in the prior year.

• Cash and cash equivalents at quarter-end were ¥243.8 billion, up from ¥200.8 billion at the start of the period.

• Net interest-bearing debt was ¥264.9 billion, with a net DER of 0.9.

Outlook and guidance

• FY2026 net sales forecast: ¥1,770.0 billion, down 6.5% year-over-year.

• Operating profit forecast: ¥30.0 billion, down 38.2% year-over-year.

• Ordinary profit forecast: ¥22.0 billion, down 62.0% year-over-year.

• Bottom-line profit forecast: ¥25.0 billion, down 47.3% year-over-year.

• Forecast revised to reflect higher resin and fuel prices and updated FX assumptions.