Fujifilm (TYO:4901) posted record earnings for the 2025-2026 fiscal year as strong demand for AI-related semiconductor materials and a resurgence in Instax cameras offset the sharp drop in sales at its healthcare segment.
The imaging company's net income attributable to shareholders rose 6% year on year in the year ended March 31 to 276.7 billion Japanese yen from 260.9 billion.
Earnings per share jumped to 229.45 yen from 216.46 yen a year prior.
Operating income increased 6.1% to 350.2 billion yen from 330.2 billion yen despite higher US tariffs and raw material costs, while revenue climbed 5% year on year to 3.357 trillion yen.
Across the company's segments, revenue from its healthcare segment rose 4.9% to 1.1 trillion yen, although operating income from the unit plunged 20% year on year to 63.6 billion yen, weighed down by lower demand for medical supplies in China and higher upfront costs from new bio CDMO manufacturing facilities.
The company launched a large-scale factory in North Carolina during the year, the first phase of which commenced operations of eight 20,000-liter mammalian cell culture bioreactors. Fujifilm also opened additional drug substance and process development facilities in the UK. The company has long-term manufacturing agreements in place with Janssen Supply Group, a Johnson & Johnson company, and Regeneron Pharmaceuticals.
The imaging segment posted the strongest revenue growth rate among the four divisions, rising 15.7% to 627.1 billion yen, and operating income jumping 15% to 160 billion yen.
"The consumer imaging business posted higher revenue, as sales of the instax instant photo systems continued to expand, surpassing cumulative sales of 100 million units," said Fujifilm.
The electronics segment posted an 11.9% increase in revenue to 456.2 billion yen and a 34.4% jump in operating income to 100.9 billion yen, owing to strong demand for semiconductors in a wide range of products such as cars and home appliances, Fujifilm said.
"Our semiconductor materials business has steadily captured this demand for AI semiconductors, resulting in a boost in revenue. Sales to major foundries continued to perform well, and sales to
major semiconductor manufacturers in the US and South Korea are also recovering," the company added.
The company plans to pay a year-end dividend of 35 yen for a total annual dividend of 70 yen per share.
For the 2026-2027 fiscal year, the company expects attributable net income to grow 1.2% year on year to 280 billion yen, and for revenue to rise 3.4% to 3.470 trillion yen.
Fujifilm attributed the forecast to the expansion of operations at its new large-scale bio CDMO manufacturing plants and increased sales of semiconductor materials.
The company did not incorporate the potential impact of higher raw material prices and energy costs as a result of the Middle East war into its full-year outlook.
However, Fujifilm noted that sustained crude oil prices at $100 per barrel could reduce operating profit by 30 billion yen to 40 billion yen per quarter.
