Sysmex Corporation

Q1 FY2026 revenue was approximately JPY105.7 billion, down to 94.4% of the same period last year. Operating profit was JPY10.62 billion, or 63.5% of last year, and quarterly profit was JPY4.55 billion, or 41.3% of the prior-year level. Management said the Japan core-system transition reduced Q1 revenue by JPY3.3 billion and operating profit by JPY3 billion, and the overseas inventory revaluation added a JPY1.7 billion cost of sales adjustment; together these special factors hurt revenue by JPY3.3 billion and operating profit by JPY4.8 billion. For H1, the company lowered its forecast to revenue of JPY240 billion and operating profit of JPY36 billion. It said the U.S. reciprocal tariff impact should remain within its initial estimate of roughly JPY3 billion to JPY4 billion for the full year, and it still aims to maintain full-year targets.

Kaoru Asano said the quarter’s weak headline numbers do not reflect a deterioration in the underlying business, but rather temporary factors tied to the core system rollout and inventory valuation review. He stressed that the Japan transition was handled cautiously to avoid disruptions to hospitals, even though that led to restricted orders and a short-term sales hit. He also pointed to continued progress in product launches, Alzheimer’s assays, and medical robotics, and said the company still intends to recover and meet its full-year plan.

Kensuke Iizuka said operating profit declined mainly because lower revenue reduced gross profit, while the inventory reassessment, higher amortization from the new core system, and a JPY0.9 percentage point deterioration in the cost of sales ratio also weighed on results. SG&A rose by about JPY2.9 billion due to headcount growth and direct-sales expansion, while R&D fell by JPY940 million due to project completions and a reassessment in life science. He said the H1 revision reflects weaker-than-expected recovery in Japan and softer China trends, and that the company expects the U.S. tariff impact to stay within JPY3 billion to JPY4 billion for the year thanks to inventory, supply-chain, manufacturing, and pricing actions.

Analysts pressed management on why recovery after the Japan system transition is delayed, and Asano said the offset plan was slowed by weaker-than-expected medical robotics sales, delayed product additions, and weaker growth in other regions. On China, management explained that bundled testing changes and VBP are hitting immunochemistry and some Hematology-linked tests such as CRP, while Hematology itself has been relatively resilient. They also acknowledged that they should have communicated the Japan quarter-specific impact more clearly in advance and apologized for that gap.