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Earnings presentation materials6753Sharp CorporationElectrical and Precision Instruments

Second-quarter results for fiscal 2026

In the first half of fiscal 2026, revenue, operating income, ordinary income and net income all fell below the year-earlier period due to worsening business conditions, lower sales, rising costs and the weaker yen. The company said results were broadly in line with expectations and left its full-year forecast unchanged.

Worth reading
79Important
Scored from 4 of 6 sections
Direction
Deterioration
Direction inferred from the company’s description.
Scale
-66.9
¥ billions (year-on-year change in first-half revenue)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentation materialsFY2026 second quarter7 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥883.4 billion-7.0%
Operating profit¥12.9 billion-55.3%
Ordinary income¥14.9 billion-55.5%
Net income¥10.8 billion-76.2%
Operating profit margin1.5
Results for the three months of the current quarter
Net Sales
¥448.2 billion-6.2%
Operating profit
¥4.7 billion-65.3%
Ordinary income
¥8.3 billion-44.4%
Net income
¥7.7 billion-57.7%
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
Self-assessment against the planThe company's self-assessment against its own plan.
Progress broadly in line with expectations
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Selling price¥45.5 billion
  • Costs and model mix¥-33.7 billion
  • Impact on sales¥-19.2 billion
  • Expenses¥8.1 billion
  • Brand Business¥-19.1 billion
  • Display devices¥2.4 billion
  • Foreign exchange impact¥-16.7 billion
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • ¥160
    BasisSecond-half average USD/JPY exchange rate
  • ¥183
    BasisSecond-half average EUR/JPY exchange rate
New initiatives
  • Start of order acceptance for AI servers for the domestic market
  • Initiatives toward launching SES satellite communications services in Japan
  • Development of domestic technical verification and communications testing infrastructure for the practical implementation of 5G-NTN
  • Start of display sales to Company A, a European or U.S. automaker
Key KPIsA metric the company considers important as a management benchmark.
  • Equity ratio20.4 %
  • Inventory-to-monthly-sales ratio2.08 months
  • Net debt-to-equity ratio1 x
Segment results
  • Smart Life
    Net Sales¥290.1 billion (YoY -0.4%)
    Operating profit¥8.2 billion (YoY -37.8%)
  • Smart Workplace
    Net Sales¥416.3 billion (YoY +1.9%)
    Operating profit¥22.2 billion (YoY -32.7%)
  • Brand Business
    Net Sales¥706.4 billion (YoY +1.0%)
    Operating profit¥30.4 billion (YoY -34.2%)
  • Display devices
    Net Sales¥179.4 billion (YoY -15.3%)
    Operating profit¥-7.2 billion
Capital expenditures
¥33 billions full-year forecast
Contents of this document
ItemDetails
Document typeEarnings presentation materials
Fiscal Period CoveredFY2026 second quarter
Net Sales¥883.4 billion (YoY -7.0%)
Operating profit¥12.9 billion (YoY -55.3%)
Ordinary income¥14.9 billion (YoY -55.5%)
Net income¥10.8 billion (YoY -76.2%)
Operating profit margin1.5
Results for the three months of the current quarterNet Sales ¥448.2 billion (YoY -6.2%) / Operating profit ¥4.7 billion (YoY -65.3%) / Ordinary income ¥8.3 billion (YoY -44.4%) / Net income ¥7.7 billion (YoY -57.7%)
Full-year earnings forecastNet Sales ¥1,770 billion / Operating profit ¥30 billion / Ordinary income ¥22 billion / Net income ¥25 billion
Self-assessment against the planProgress broadly in line with expectations
Segment resultsSegment Smart Life / Net Sales ¥290.1 billion (YoY -0.4%) / Operating profit ¥8.2 billion (YoY -37.8%), Segment Smart Workplace / Net Sales ¥416.3 billion (YoY +1.9%) / Operating profit ¥22.2 billion (YoY -32.7%), Segment Brand Business / Net Sales ¥706.4 billion (YoY +1.0%) / Operating profit ¥30.4 billion (YoY -34.2%), Segment Display devices / Net Sales ¥179.4 billion (YoY -15.3%) / Operating profit ¥-7.2 billion
Breakdown of Factors Affecting the ChangeFactors Selling price / Amount ¥45.5 billion, Factors Costs and model mix / Amount ¥-33.7 billion, Factors Impact on sales / Amount ¥-19.2 billion, Factors Expenses / Amount ¥8.1 billion, Factors Brand Business / Amount ¥-19.1 billion, Factors Display devices / Amount ¥2.4 billion, Factors Foreign exchange impact / Amount ¥-16.7 billion
Key KPIsIndicator name Equity ratio / Value 20.4 % / Year on year against the same period last year Not disclosed, Indicator name Inventory-to-monthly-sales ratio / Value 2.08 months / Year on year against the same period last year Not disclosed, Indicator name Net debt-to-equity ratio / Value 1 x / Year on year against the same period last year Not disclosed
Assumptions Underlying the Business OutlookBasis Second-half average USD/JPY exchange rate / Value ¥160, Basis Second-half average EUR/JPY exchange rate / Value ¥183
Capital expenditures¥33 billions (full-year forecast)
New initiativesStart of order acceptance for AI servers for the domestic market, Initiatives toward launching SES satellite communications services in Japan, Development of domestic technical verification and communications testing infrastructure for the practical implementation of 5G-NTN, Start of display sales to Company A, a European or U.S. automaker
Items this document does not state (15)
Gross Profit MarginSelling, general and administrative expensesProgress against full-year forecastUnit 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 worsening business conditions, the impact of lower sales, costs and product mix, and foreign exchange effects as factors behind the decline in profit. By segment, it cited lower sales of display devices, higher component prices and the weaker yen in Smart Life, and higher component prices and the weaker yen in Smart Workplace. Higher selling prices, expense reductions and progress in structural reforms were partial factors supporting improvement.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Second-quarter results for fiscal 2026 | Sharp Corporation (6753) timely disclosure | Komori