Nikon raised full-year profit forecast by 50%, but trimmed imaging sales outlook

A day after the $14,000 Nikkor Z 120-300mm f/2.8 TC VR S lens announcement, Nikon raised its full-year profit forecast, driven by semiconductor strength and reported an Imaging sales outlook cut (see previous financial reports):

Nikon raises full-year profit forecast by 50%, but trims Imaging Products sales outlook for the second half

Nikon today revised its consolidated financial forecast for the fiscal year ending March 31, 2027, significantly raising profit guidance while lowering its revenue outlook. For the full year, the company now expects:

• Revenue of ¥722 billion (down from the previous ¥732 billion forecast)
• Operating profit of ¥16.5 billion (up 50% from ¥11 billion)
• Profits of ¥16 billion (up 60% from ¥10 billion)

This marks a major recovery from the prior year’s operating loss of ¥112.4 billion and net loss of ¥86.1 billion. The upward profit revision is driven by stronger-than-expected results in the Precision Equipment Business (especially semiconductor equipment service revenue amid favorable market conditions), along with improved outlooks for the Healthcare and Industry businesses. Additional factors include U.S. tariff refunds and lower selling, general, and administrative expenses from cost containment. Revenue is declining mainly because of a downward revision to the second-half sales plan in the Imaging Products Business (cameras and lenses). This continues the softness noted earlier in the year, including weaker demand (particularly in China) and prior cuts to camera and lens unit forecasts. A key driver of the improved outlook is Nikon’s stronger-than-expected first-half performance. Operating profit for the first half is now expected to reach ¥9 billion, compared with a previously forecast loss of ¥5.5 billion.

The group-wide upgrade does not mean Nikon’s camera business outlook has improved. Nikon actually lowered its second-half operating profit forecast, primarily because of a weaker outlook for the Imaging business. The stronger first-half forecast more than offsets that reduction, lifting the full-year total. In other words, Nikon expects to make more money overall despite forecasting lower sales, while its imaging business continues to face a more challenging outlook.

Full-Year Forecast Revisions (FY Ending March 31, 2027)

First-Half Forecast Revisions (April 1 – September 30, 2026)

Nikon also shared a much stronger-than-expected performance for the first half of the fiscal year, swinging from a projected operating loss into solid profitability:

• Revenue: Revised slightly down from ¥336.0 billion to ¥334.5 billion (-0.4%).
• Operating Profit: Revised upward by ¥14.5 billion, swinging from a previously projected loss of ¥5.5 billion to a ¥9.0 billion profit.
• Net Profit (Attributable to Owners): Revised upward from an expected loss of ¥2.5 billion to a ¥10.5 billion profit.

Key takeaways & what happened with the camera division?

• Weaker H2 Camera Sales Outlook: Despite the overall corporate profit surge, Nikon explicitly noted that full-year revenue will fall below previous expectations “mainly due to a revision of the sales plan for the second half in the Imaging Products Business.” Second-half operating profit projections were also tempered by this softer outlook for camera gear.
• Precision Equipment Leads the Surge: The massive beat in first-half operating profit was fueled by higher-than-expected service revenue in the Precision Equipment Business (semiconductor lithography and maintenance services) alongside favorable semiconductor market conditions.
• Cost Containment & U.S. Tariff Refunds: Bottom-line figures received an additional boost from U.S. tariff refunds, company-wide cost containment measures, and the deferral of certain SG&A expenditures into later periods.
• Upgrades in Other Segments: Strong first-half results prompted Nikon to raise full-year profit expectations for its Precision Equipment, Healthcare, and Industry business segments, more than offsetting the softer second-half camera sales projections.
• Foreign Exchange Assumptions: Nikon is maintaining its existing currency exchange assumptions from Q3 onward at 1 USD = ¥155 and 1 EUR = ¥180.

From Nikon:

Regarding the consolidated financial forecast for the first half, revenue is expected to be generally in line with the previous forecast. Operating profit is expected to exceed the previous forecast, driven by higher-than-expected service revenue in the Precision Equipment Business amid favorable semiconductor market conditions, tariff refunds in the United States, and lower selling, general and administrative expenses due to cost containment and the deferral of certain
expenditures. Profit before tax and profit attributable to owners of parent are expected to exceed the previous forecast, mainly due to the improvement in operating profit. Based on these factors, the financial forecast has been revised as described in 1. (1) above.

Regarding the consolidated financial forecast for the full year, revenue is expected to fall below the previous forecast, mainly due to a revision of the sales plan for the second half in the Imaging Products Business. Operating profit for the Group as a whole is expected to exceed the previous forecast. This reflects upward revisions to the profit outlooks for the Precision Equipment Business, the Healthcare Business, and the Industry Business based on the first-half results. Profit
before tax and profit attributable to owners of parent are expected to exceed the previous forecast, mainly due to the improvement in operating profit. Based on these factors, the financial forecast has been revised as described above.

Nikon FY2026 financial results: profits down, targets recovery in FY2027