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Presentation materials for financial results6753Sharp CorporationElectrical Equipment and Precision Instruments

Financial Results for the First Quarter of Fiscal 2026

In the first quarter of FY2026, company-wide sales and operating income fell below the year-earlier quarter, while the company remained profitable on a net income basis. In response to higher component and memory prices and yen depreciation, the company lowered its full-year forecasts for operating income, ordinary income and net income, and revised its foreign exchange assumptions.

Worth reading
49Recurring
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Direction
Mixed performance
Direction inferred from the company’s description.
Scale
-19
¥ billions (revision to full-year operating income forecast)
Wording
Conditional
How definitive the wording is.

Contents of this document

Presentation materials for financial resultsFirst quarter of the fiscal year ended March 20266 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥435.2 billion-7.9%
Operating profit¥8.2 billion-46.3%
Ordinary income¥6.5 billion-64.5%
Net income¥3.1 billion-88.6%
Operating profit margin1.9 %
Results for the three months of the current quarter
Net Sales
¥435.2 billion
Operating profit
¥8.2 billion
Ordinary income
¥6.5 billion
Net income
¥3.1 billion
Full-year earnings forecast
Net Sales
¥1,770 billion
Operating profit
¥30 billion
Ordinary income
¥22 billion
Net income
¥25 billion
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Selling price¥14.3 billion
  • Sales impact¥-7.2 billion
  • Costs and model mix¥-7.9 billion
  • Expenses¥2.4 billion
  • Foreign Exchange Effects¥-8.7 billion
  • Brand business¥-10.3 billion
  • Display Devices¥1.6 billion
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Average USD/JPY exchange rate¥160
  • Average EUR/JPY exchange rate¥183
New initiatives
  • Integrated AI service scheduled to be announced shortly
  • Proposal of ERP integration solutions through collaboration with Synapse Innovation
  • Basic agreement with SES toward establishing a partnership in the satellite communications services field
  • Development of the business structure and other terms for launching the AI server business
  • Investment in Noetra
  • Memorandum of understanding with Hon Hai on strategic collaboration in a new business
  • Planned establishment of a new base in Taiwan
Key KPIsA metric the company considers important as a management benchmark.
  • Domestic B2B salesApproximately 40% year-on-year growth
    Year on year against the same period last year+40.0%
Segment results
  • Smart Life
    Net Sales¥144 billion (YoY +2.6%)
    Operating profit¥3.7 billion (YoY -45.6%)
  • Smart Workplace
    Net Sales¥200.8 billion (YoY +6.1%)
    Operating profit¥10.7 billion (YoY -24.6%)
  • Brand business
    Net Sales¥344.9 billion (YoY +4.6%)
    Operating profit¥14.4 billion (YoY -31.5%)
  • Display Devices
    Net Sales¥91.3 billion (YoY -16.4%)
    Operating profit¥-2.1 billion
Capital expenditures
¥39 billion
Contents of this document
ItemDetails
Document typePresentation materials for financial results
Fiscal Period CoveredFirst quarter of the fiscal year ended March 2026
Net Sales¥435.2 billion (YoY -7.9%)
Operating profit¥8.2 billion (YoY -46.3%)
Ordinary income¥6.5 billion (YoY -64.5%)
Net income¥3.1 billion (YoY -88.6%)
Operating profit margin1.9 %
Results for the three months of the current quarterNet Sales ¥435.2 billion / Operating profit ¥8.2 billion / Ordinary income ¥6.5 billion / Net income ¥3.1 billion
Full-year earnings forecastNet Sales ¥1,770 billion / Operating profit ¥30 billion / Ordinary income ¥22 billion / Net income ¥25 billion
Segment resultsSegment Smart Life / Net Sales ¥144 billion (YoY +2.6%) / Operating profit ¥3.7 billion (YoY -45.6%), Segment Smart Workplace / Net Sales ¥200.8 billion (YoY +6.1%) / Operating profit ¥10.7 billion (YoY -24.6%), Segment Brand business / Net Sales ¥344.9 billion (YoY +4.6%) / Operating profit ¥14.4 billion (YoY -31.5%), Segment Display Devices / Net Sales ¥91.3 billion (YoY -16.4%) / Operating profit ¥-2.1 billion
Breakdown of Factors Affecting the ChangeFactors Selling price / Amount ¥14.3 billion, Factors Sales impact / Amount ¥-7.2 billion, Factors Costs and model mix / Amount ¥-7.9 billion, Factors Expenses / Amount ¥2.4 billion, Factors Foreign Exchange Effects / Amount ¥-8.7 billion, Factors Brand business / Amount ¥-10.3 billion, Factors Display Devices / Amount ¥1.6 billion
Key KPIsIndicator name Domestic B2B sales / Value Approximately 40% year-on-year growth / Year on year against the same period last year 40 Year on year
Assumptions Underlying the Business OutlookItem Average USD/JPY exchange rate / Value ¥160, Item Average EUR/JPY exchange rate / Value ¥183
Capital expenditures¥39 billion
New initiativesIntegrated AI service scheduled to be announced shortly, Proposal of ERP integration solutions through collaboration with Synapse Innovation, Basic agreement with SES toward establishing a partnership in the satellite communications services field, Development of the business structure and other terms for launching the AI server business, Investment in Noetra, Memorandum of understanding with Hon Hai on strategic collaboration in a new business, Planned establishment of a new base in Taiwan
Items this document does not state (16)
Gross Profit MarginSelling, general and administrative expensesProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsAnnual DividendPayout ratioAcquisition of treasury sharesOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

The company cited surging component and memory prices, further yen depreciation, lower sales, sales impact, and costs and model mix as factors behind the decline in first-quarter earnings. The full-year forecast was revised to reflect the impact of higher resin and fuel prices, and the assumed exchange rates were revised.

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Financial Results for the First Quarter of Fiscal 2026 | Sharp Corporation (6753) timely disclosure | Komori