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Results presentationSecond quarter of the fiscal year ending March 202711 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales5,096 (first-half cumulative) / 2,692 (second quarter)
Operating profit850 (first-half cumulative, excluding the impact of the US tariff refund) / 560 (second quarter, same exclusion)
Net income521 (first-half cumulative, excluding the impact of the US tariff refund) / 330 (second quarter, same exclusion)
Selling, general and administrative expenses2,511 (first-half cumulative) / 1,261 (second quarter)
Gross Profit Margin31.7% for the first six months, up 1.4 percentage points year on year (adjusted for foreign exchange effects). 29.0% for the second quarter, up 2.5 percentage points year on year (adjusted for foreign exchange effects)
Operating profit margin16.7% for the first six months, up 1.5 percentage points year on year (adjusted for foreign exchange effects). 20.8% for the second quarter, unchanged year on year (adjusted for foreign exchange effects)
Results for the three months of the current quarterRevenue ¥269.2 billion, operating income ¥56.0 billion, pretax income ¥55.0 billion, net income ¥33.0 billion, adjusted operating income ¥65.2 billion, adjusted EPS ¥44 (excluding the impact of the US tariff refund)
Full-year earnings forecast
Net Sales¥1,064.5–¥1,076.0 billion
Operating profit¥155.0–¥167.5 billion (excluding the impact of the US tariff refund)
Adjusted operating profit¥186.5–¥199.0 billion (excluding the impact of the US tariff refund)
Profit for the period¥103.5–¥112.0 billion (excluding the impact of the US tariff refund)
EPS¥97–¥105 (excluding the impact of the US tariff refund)
Adjusted EPS¥124–¥133 (excluding the impact of the US tariff refund)
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Confidence in the Company's plan has deepened, strengthening confidence in achieving the full-year outlook. In the first half, execution progressed steadily in line with the FY2027–FY2029 financial targetsBreakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
For the first six months, adjusted operating income reflected sales volume and mix of +¥9.2 billion, changes in the cost ratio of -¥6.8 billion, changes in selling, general and administrative expenses of +¥8.5 billion, and foreign exchange effects and other factors of +¥17.2 billion. For the second quarter alone, the corresponding figures were +¥1.9 billion, -¥6.6 billion, +¥1.2 billion and +¥14.1 billion
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
FY27 assumed exchange rates: US$1=¥155, €1=¥181, CNY1=¥22.5. Annual foreign exchange sensitivity: for each ¥1 change in the dollar, revenue changes by ¥2.9 billion and operating income by ¥0.5 billion; for each ¥1 change in the euro, revenue changes by ¥1.7 billion and operating income by ¥0.5 billion; for each ¥1 change in the yuan, revenue changes by ¥3.9 billion and operating income by ¥1.7 billionNew initiatives
Introduction of an operating model for the business entities, integration of BioProtect, rollout of single-use scopes, submission of a response to the FDA Warning Letter, remediation of the quality system, annual cost reductions of ¥24.0 billion through FY28, and regional rollout of the product pipelineKey KPIsA metric the company considers important as a management benchmark.
Adjusted operating margin 15.4% (first-half cumulative, up 4.3 percentage points year on year), adjusted EPS ¥52 (first-half cumulative, up 63% year on year), adjusted FCF ¥23.6 billion (first-half cumulative)Segment results
Gastrointestinal endoscopy solutionsRevenue ¥353.0 billion (first-half cumulative, up 15% year on year, up 6% after adjusting for foreign exchange effects), operating income ¥98.8 billion (excluding the impact of the refund, up 63% year on year, up 38% after adjusting for foreign exchange effects)
Surgical interventionRevenue ¥156.6 billion (up 6% year on year, down 2% after adjusting for foreign exchange effects), operating income (loss) ¥3.2 billion (excluding the impact of the refund)
Consolidated totalRevenue ¥509.6 billion, operating income ¥85.0 billion (first-half cumulative, excluding the impact of the refund)
Medium-term management plan targets
Progress is in line with the FY2027–FY2029 financial targets. Annual cost-reduction target of ¥24.0 billion through FY28Financial targets
Equity ratio 49.6% (at the end of September 2026, down 3.2 percentage points from the end of March 2026). Other targets for ROE, ROIC and the D/E ratio: not disclosedCapital expenditures
498 (first-half cumulative) / 950 (full-year forecast)
Annual Dividend
Annual dividend of ¥30 per share planned. Interim and year-end breakdown: not disclosedAcquisition of treasury shares
¥60.0 billion spent on share repurchases in the first six months. Number of shares and repurchase period under the authorization: not disclosed| Item | Details |
|---|---|
| Document type | Results presentation |
| Fiscal Period Covered | Second quarter of the fiscal year ending March 2027 |
| Net Sales | 5,096 (first-half cumulative) / 2,692 (second quarter) |
| Operating profit | 850 (first-half cumulative, excluding the impact of the US tariff refund) / 560 (second quarter, same exclusion) |
| Net income | 521 (first-half cumulative, excluding the impact of the US tariff refund) / 330 (second quarter, same exclusion) |
| Gross Profit Margin | 31.7% for the first six months, up 1.4 percentage points year on year (adjusted for foreign exchange effects). 29.0% for the second quarter, up 2.5 percentage points year on year (adjusted for foreign exchange effects) |
| Operating profit margin | 16.7% for the first six months, up 1.5 percentage points year on year (adjusted for foreign exchange effects). 20.8% for the second quarter, unchanged year on year (adjusted for foreign exchange effects) |
| Selling, general and administrative expenses | 2,511 (first-half cumulative) / 1,261 (second quarter) |
| Results for the three months of the current quarter | Revenue ¥269.2 billion, operating income ¥56.0 billion, pretax income ¥55.0 billion, net income ¥33.0 billion, adjusted operating income ¥65.2 billion, adjusted EPS ¥44 (excluding the impact of the US tariff refund) |
| Full-year earnings forecast | Net Sales ¥1,064.5–¥1,076.0 billion / Operating profit ¥155.0–¥167.5 billion (excluding the impact of the US tariff refund) / Adjusted operating profit ¥186.5–¥199.0 billion (excluding the impact of the US tariff refund) / Profit for the period ¥103.5–¥112.0 billion (excluding the impact of the US tariff refund) / EPS ¥97–¥105 (excluding the impact of the US tariff refund) / Adjusted EPS ¥124–¥133 (excluding the impact of the US tariff refund) |
| Self-assessment against the plan | Confidence in the Company's plan has deepened, strengthening confidence in achieving the full-year outlook. In the first half, execution progressed steadily in line with the FY2027–FY2029 financial targets |
| Segment results | Gastrointestinal endoscopy solutions Revenue ¥353.0 billion (first-half cumulative, up 15% year on year, up 6% after adjusting for foreign exchange effects), operating income ¥98.8 billion (excluding the impact of the refund, up 63% year on year, up 38% after adjusting for foreign exchange effects) / Surgical intervention Revenue ¥156.6 billion (up 6% year on year, down 2% after adjusting for foreign exchange effects), operating income (loss) ¥3.2 billion (excluding the impact of the refund) / Consolidated total Revenue ¥509.6 billion, operating income ¥85.0 billion (first-half cumulative, excluding the impact of the refund) |
| Breakdown of Factors Affecting the Change | For the first six months, adjusted operating income reflected sales volume and mix of +¥9.2 billion, changes in the cost ratio of -¥6.8 billion, changes in selling, general and administrative expenses of +¥8.5 billion, and foreign exchange effects and other factors of +¥17.2 billion. For the second quarter alone, the corresponding figures were +¥1.9 billion, -¥6.6 billion, +¥1.2 billion and +¥14.1 billion |
| Key KPIs | Adjusted operating margin 15.4% (first-half cumulative, up 4.3 percentage points year on year), adjusted EPS ¥52 (first-half cumulative, up 63% year on year), adjusted FCF ¥23.6 billion (first-half cumulative) |
| Assumptions Underlying the Business Outlook | FY27 assumed exchange rates: US$1=¥155, €1=¥181, CNY1=¥22.5. Annual foreign exchange sensitivity: for each ¥1 change in the dollar, revenue changes by ¥2.9 billion and operating income by ¥0.5 billion; for each ¥1 change in the euro, revenue changes by ¥1.7 billion and operating income by ¥0.5 billion; for each ¥1 change in the yuan, revenue changes by ¥3.9 billion and operating income by ¥1.7 billion |
| Medium-term management plan targets | Progress is in line with the FY2027–FY2029 financial targets. Annual cost-reduction target of ¥24.0 billion through FY28 |
| Financial targets | Equity ratio 49.6% (at the end of September 2026, down 3.2 percentage points from the end of March 2026). Other targets for ROE, ROIC and the D/E ratio: not disclosed |
| Annual Dividend | Annual dividend of ¥30 per share planned. Interim and year-end breakdown: not disclosed |
| Acquisition of treasury shares | ¥60.0 billion spent on share repurchases in the first six months. Number of shares and repurchase period under the authorization: not disclosed |
| Capital expenditures | 498 (first-half cumulative) / 950 (full-year forecast) |
| New initiatives | Introduction of an operating model for the business entities, integration of BioProtect, rollout of single-use scopes, submission of a response to the FDA Warning Letter, remediation of the quality system, annual cost reductions of ¥24.0 billion through FY28, and regional rollout of the product pipeline |
Items this document does not state (10)
Ordinary incomeProgress against full-year forecastUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookPayout ratioOrders 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.GIS grew in the major markets of North America, Europe, Asia and Oceania, with growth in gastrointestinal endoscopy products, urology, pulmonology and other areas. At SIS, the resumption of shipments progressed ahead of schedule, improving product availability. The introduction of an operating model for the business entities and cost-reduction initiatives also benefited selling, general and administrative expenses. Conversely, an FDA-related import alert, the suspension of shipments of certain products, an adverse sales mix and higher manufacturing costs were identified as negative factors.
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