Sharp held an earnings briefing for the first quarter of FY2026. Revenue declined year on year, while the company remained profitable on a net income basis. The full-year forecast was revised downward in response to soaring resin and fuel prices and the sharp depreciation of the yen, while Sharp also outlined details of its growth strategy, including a new AI server business.
Sharp held an earnings briefing for the first quarter of FY2026 (April-June), reporting revenue of ¥435.2 billion, operating profit of ¥8.2 billion and net profit of ¥3.1 billion. The company got off to a decline in both revenue and profit, but remained profitable on a net income basis. Its equity ratio recovered to 20.2% as cash and net assets increased.
The Smart Life business, which includes white goods, energy products and televisions, increased revenue, but profit was constrained by soaring component prices and the weaker yen. Revenue from PCs, multifunction printers and smart workplaces remained solid, with particularly strong contributions from front-loaded demand in the PC business.
The display devices and communications businesses were affected by deteriorating market conditions. Sharp is proceeding with the sale of display-related assets, while the process of suspending production at the Kameyama No. 2 Plant is making steady progress.
Sharp revised its full-year forecast downward to revenue of ¥1.77 trillion, operating profit of ¥30 billion and net profit of ¥25 billion. The main factors behind the downward revision were higher costs for resin, fuel and other items, as well as the weaker yen. The Smart Life business is expected to be particularly affected.