Olympus Corporation (TSE: 7733), the Tokyo-based medical technology company and the world's leading maker of gastrointestinal endoscopes — with roughly 70% of the global market — reported FY2026 results (year ended March 31, 2026) under IFRS. On a continuing-operations basis, revenue rose 1.3% year-on-year to ¥1,010,676 million (¥1.01 trillion), while operating profit dropped 40.2% to ¥97,120 million and profit before tax fell 40.9% to ¥93,994 million. Profit attributable to owners of the parent — which combines continuing and discontinued operations — fell 42.2% to ¥68,172 million.
The steep year-on-year profit decline is largely a product of accounting rather than underlying trading. From the first quarter of FY2026, Olympus reclassified its orthopedics business as a discontinued operation as it moves to exit the segment, so revenue, operating profit, adjusted operating profit and pre-tax profit are now presented on a continuing-operations basis. Stripping out one-off costs, adjusted operating profit fell a milder 24.0% to ¥143,310 million, and total comprehensive income actually rose 15.0% to ¥130,451 million. Basic EPS came in at ¥61.32 (diluted ¥61.20), down from ¥102.99 a year earlier, while ROE was 8.7% and the operating margin held at 9.6%.
Streamlining around the endoscopy and surgical-devices core
The reclassification underscores a strategic narrowing. By exiting orthopedics, Olympus is concentrating on its dominant GI-endoscopy franchise and its surgical and therapeutic-devices businesses, which remain the engine of the group. Endoscopes — where Olympus holds roughly 70% of the world market — together with surgical instruments continue to generate the bulk of revenue and profit, and management is positioning the portfolio around these core medical technologies rather than the more capital-intensive, lower-margin orthopedics operations.
Balance sheet, cash flow and a raised dividend
Total assets stood at ¥1,537,162 million, with total equity of ¥812,040 million — all attributable to owners of the parent — for an owners' equity ratio of 52.8% and book value per share of ¥737.48. Operating cash flow reached ¥100,585 million and cash and cash equivalents ended the year at ¥188,038 million. Despite the lower headline profit, Olympus raised its FY2026 annual dividend to ¥30 per share, up from ¥20 in FY2025, for a payout ratio of 48.9%. The company has guided for a further ¥30 per share in FY2027.
FY2027 guidance points to a sharp rebound
For FY2027 (ending March 2027), Olympus guides for a strong recovery: revenue of ¥1,076,000 million (+6.5%), operating profit of ¥155,500 million (+60.1%), adjusted operating profit of ¥179,500 million (+25.3%), profit before tax of ¥149,500 million (+59.1%) and profit attributable to owners of ¥109,000 million (+59.9%), with EPS of ¥102.24. The guidance implies the FY2026 reset — driven by the orthopedics discontinuance and one-off charges — gives way to renewed profit growth as the slimmed-down, endoscopy-led portfolio takes hold.
| Metric | FY2026 | FY2025 | YoY |
|---|---|---|---|
| Revenue (¥ million) | 1,010,676 | 997,332 | +1.3% |
| Operating profit (¥ million) | 97,120 | 162,462 | -40.2% |
| Adjusted operating profit (¥ million) | 143,310 | 188,509 | -24.0% |
| Profit before tax (¥ million) | 93,994 | 159,012 | -40.9% |
| Profit attrib. to owners (¥ million) | 68,172 | 117,855 | -42.2% |
| EPS (¥, basic) | 61.32 | 102.99 | -40.5% |
| Operating margin | 9.6% | 16.3% | -6.7pp |
| Owners' equity ratio | 52.8% | — | — |
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