Sharp Corporation (TSE: 6753), the Osaka-based electronics maker known for home appliances and displays and majority-owned by Taiwan's Foxconn/Hon Hai, posted a turnaround year for FY2026 (year ended March 31, 2026) under Japanese GAAP. Consolidated revenue fell 12.4% year-on-year to ¥1,892.8 billion as the company exited unprofitable display-panel production, yet operating profit jumped 77.6% to ¥48.6 billion, ordinary profit more than tripled (+228.3%) to ¥58.0 billion, and net profit attributable to owners rose 31.4% to ¥47.4 billion.
The result captures Sharp's deliberate revenue-down, profit-up strategy: stripping out loss-making operations dragged the top line lower but lifted the quality of what remained. The operating margin improved to 2.6%, ROE reached 21.9%, and basic EPS rose to ¥73.05 from ¥55.59 a year earlier. The company paid no dividend for FY2026 (as in the prior year), and the FY2027 dividend remains undecided.
Display-panel exit and Sakai repurposing reshape the business
The pivotal move behind the turnaround was Sharp's decision to wind down smartphone display-panel production and shed its large loss-making LCD operations. Within that effort, the Sakai (SDP) plant — long a drain on earnings — is being repurposed toward AI data-center use rather than panel manufacturing. The Display Device segment saw sales fall 6.4% to ¥423.5 billion as these exits took hold. While the divestitures pulled overall revenue lower, they removed a structural source of losses, which is the central reason operating profit surged 78% and ordinary profit more than tripled even as sales declined.
Brand "Smart Life" business and balance-sheet repair
Sharp's other principal segment, the Brand business — its "Smart Life" white-goods and home-appliance operations — recorded sales down 7.1% to ¥598.0 billion. The most striking gains came on the balance sheet. Net assets nearly doubled to ¥295.3 billion from ¥167.7 billion, and the equity ratio roughly doubled to 19.6% from 10.5%, repairing a previously thin capital base. Total assets stood at ¥1,428.3 billion and book value per share at ¥431.14. Comprehensive income leapt to ¥130,950 million from ¥10,050 million a year earlier. Healthy operating cash generation supported a year-end cash position of ¥230.5 billion.
FY2027 outlook and dividend
For FY2027 (ending March 2027), Sharp forecasts revenue of ¥1,770.0 billion (-6.5%) as the full-year effect of the panel exits continues to compress the top line. Operating profit is guided modestly higher at ¥49.0 billion (+0.9%), while ordinary profit is expected to fall to ¥39.0 billion (-32.7%) and net profit to ¥42.0 billion (-11.5%), implying EPS of ¥64.68. The dividend for the new fiscal year remains undecided, leaving shareholders without a payout for a third consecutive year pending a final decision.
| Metric | FY2026 | FY2025 | YoY |
|---|---|---|---|
| Revenue (¥ billion) | 1,892.8 | 2,160.1 | -12.4% |
| Operating profit (¥ billion) | 48.6 | 27.3 | +77.6% |
| Ordinary profit (¥ billion) | 58.0 | 17.7 | +228.3% |
| Net profit attrib. to owners (¥ billion) | 47.4 | 36.1 | +31.4% |
| EPS (¥) | 73.05 | 55.59 | +31.4% |
| Operating margin | 2.6% | 1.3% | +1.3pp |
| ROE | 21.9% | — | — |
| Equity ratio | 19.6% | 10.5% | +9.1pp |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.