FUJIY Q1 Earnings Fall Y/Y on Bio CDMO Costs, Revenues Rise

FUJIY's Profitability Comes Under Pressure

Operating income declined 32% year over year to ¥51.2 billion, while the operating margin contracted to 6.2% from 10%. Higher fixed costs in Bio CDMO, one-time Business Innovation restructuring costs and rising raw material prices outweighed profit growth in Electronics and Imaging.

Gross profit increased 3.5% to ¥323.4 billion, but the gross margin fell to 39.1% from 41.7%. Selling, general and administrative expenses climbed 16.9% to ¥229.9 billion, while research and development expenses rose 4.1% to ¥42.3 billion.

FUJIFILM Healthcare Swings to a Loss

Healthcare revenues increased 12.4% to ¥256.8 billion, but the segment posted an operating loss of ¥12.7 billion versus income of ¥4.3 billion a year earlier. Medical Systems revenues rose 12.8% to ¥162.4 billion, supported by higher endoscope and medical IT sales.

Bio CDMO revenues increased 6.4% to ¥57.7 billion. Expanded large-scale operations were offset by unplanned shutdowns at small- to medium-scale U.S. facilities for regulatory inspections and upfront costs tied to the new U.S. site. LS Solutions revenues advanced 21.4% to ¥36.7 billion.

FUJIY Electronics Leads Segment Profit Growth

Electronics revenues surged 25% to ¥127.7 billion, while operating income rose 38.2% to ¥31.1 billion. The segment's operating margin expanded to 24.4% from 22.1%.

Semiconductor Materials revenues reached ¥84.9 billion as sales of CMP slurry, NTI developers, advanced photoresists and liquid polyimides benefited from AI semiconductor demand. AF Materials revenues rose to ¥42.8 billion, helped by higher data-tape sales to major IT companies.

FUJIFILM Imaging Extends Revenue Momentum

Imaging revenues advanced 16.2% to ¥168.8 billion, and operating income increased 3.9% to ¥43.4 billion. Consumer Imaging revenues climbed 25.1% to ¥96.7 billion as instax sales benefited from strong mid-to-high-priced models and expanded film supply.

Professional Imaging revenues rose 6% to ¥72.1 billion on digital-camera demand, particularly in Asia. However, revenue declined 4.6% on a constant-currency basis because of a tough comparison with strong new-product sales in the prior-year quarter.

FUJIY’s Business Innovation

Business Innovation revenues edged down 0.1% to ¥273.2 billion, while the segment recorded a ¥1.4 billion operating loss versus ¥15.6 billion of income a year ago. Office Solutions revenues fell 4.6% to ¥114.5 billion amid lower exports to Europe and the United States and weaker sales in China.

Business Solutions revenues rose 2.7% to ¥77.8 billion, while Graphic Communications revenues increased 4.1% to ¥81 billion. FUJIFILM also began assessing a partial spin-off of Business Innovation, with execution being considered within the next two to three years.

FUJIFILM Cash Flow Reflects Heavy Investment

Net cash provided by operating activities was ¥92.3 billion compared with ¥94.8 billion a year earlier. Investing activities used ¥124.9 billion, producing negative free cash flow of ¥32.6 billion.

Cash and cash equivalents ended June at ¥150.7 billion, down ¥19.9 billion from March. Total assets increased to ¥6,167.3 billion, while inventories rose ¥66.3 billion to ¥667.1 billion.

FUJIY Raises Revenue Outlook, Keeps Profit View

FUJIFILM raised its fiscal 2026 revenue forecast by ¥90 billion to ¥3,560 billion, representing 6% growth from fiscal 2025. The company maintained its operating income forecast at ¥365 billion and net income outlook at ¥280 billion, implying increases of 4.2% and 1.2%, respectively.

Healthcare operating income guidance was cut to ¥41 billion from ¥69 billion because of delayed Bio CDMO profitability. Electronics operating income guidance was raised to ¥120 billion from ¥106 billion, while Business Innovation was lifted to ¥80 billion from ¥65 billion. Imaging remained at ¥162 billion.

Zacks Rank & Price Performance of FUJIY

Currently, FUJIFILM has a Zacks Rank #3 (Hold). In the past year, shares have lost 6.8% against the Zacks Semiconductor Equipment – Photomasks industry’s growth of 57.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Recent Performance of Other Companies in Tech Space

Fortive Corporation FTV reported second-quarter 2026 adjusted earnings of 74 cents per share, which jumped 28.5% year over year and topped the Zacks Consensus Estimate of 71 cents by 4.2%.

Revenues rose 7.9% year over year to $1.10 billion and beat the consensus estimate of $1.06 billion by 3.5%. Core revenues increased 6.7%, reflecting price and volume growth in both operating segments.

Flex Ltd. FLEX reported first-quarter fiscal 2027 adjusted earnings of $1.00 per share, up 38.9% year over year. The figure beat the Zacks Consensus Estimate of 93 cents by 7.5%.

Revenues advanced 20.6% to $7.93 billion and topped the consensus mark of $7.58 billion by 4.6%. Broad-based segment growth, led by a 35% expansion in Cloud and Power Infrastructure, supported the results.

SAP SE SAP reported second-quarter 2026 non-IFRS earnings per share of €1.59 ($1.85), which increased 6% from the year-ago quarter. The Zacks Consensus Estimate was pegged at $2.

Despite macroeconomic uncertainty, SAP reported total revenues on a non-IFRS basis of €9.9 billion ($11.5 billion), which increased 9% year over year (up 11% at constant currency or cc). The Zacks Consensus Estimate was pegged at $11.4 billion.

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