Will double-digit revenue growth across all 4 businesses continue into the third quarter?

First-half revenue for the fiscal year ending December 2026 was ¥47,234.964 million, up 20.5% year on year, while operating profit was ¥10,012.512 million, up 32.0%. Revenue was up 12.3% even excluding foreign exchange effects, indicating that the increase cannot be explained solely by the superficial benefit of yen depreciation. The first-half operating margin was approximately 21.2%, up approximately 1.8 percentage points from approximately 19.4% in the same period of the previous year.

By segment, Dental revenue was ¥26,962.871 million and segment operating profit was ¥8,961.875 million; DCI revenue was ¥12,155.168 million and segment operating profit was ¥674.182 million; Surgical revenue was ¥3,909.019 million and segment operating profit was ¥1,474.280 million; and Industrial revenue was ¥4,207.904 million and segment operating profit was ¥1,141.775 million. Year-on-year revenue growth was 14.6%, 23.6%, 53.4% and 28.6%, respectively. All 4 businesses delivered both revenue and profit growth, demonstrating the breadth of the recovery.

First-half results represented 50.0% of the revised full-year revenue forecast of ¥94,480 million and 53.7% of the operating profit forecast of ¥18,649 million. Ordinary profit was ¥11,577 million, or 60.8% of the full-year forecast of ¥19,062 million, while interim net profit attributable to owners of the parent was ¥8,144 million, or 60.1% of the full-year forecast of ¥13,544 million. First-half earnings progress was solid, but it is not yet clear how much of a reversal of DCI's front-loaded demand or how much in post-acquisition costs will emerge in the second half.

In the third quarter, we will look for confirmation of each segment's revenue and operating profit, as well as underlying demand after demand ahead of DCI's price increases has subsided, the contribution from the Surgical M&A, and a recovery in Industrial's margin. The latest earnings report does not provide order intake or order backlog figures, limiting visibility into the second half through orders. Accordingly, important criteria will include not only whether the full-year forecast is maintained or revised again, but also whether growth and profit margins for each of the 4 businesses are disclosed on a consistent basis.