TYO:7951

Yamaha FY26 EPS Gains on Steady Revenue; Upside Forecast for FY27

Yamaha (TYO:7951), the world's largest musical instrument-maker, posted a rise in earnings per share (EPS) in fiscal 2026 on stable revenue, and forecast sales and profits would rise through fiscal 2027, on Monday.Yamaha reported revenue of 465.3 billion yen in the year ended March 31, up 0.7% from fiscal 2025.Piano sales to mainland China were sluggish, and high demand for professional audio equipment "normalized," or declined, in fiscal 2026, reported Yamaha.But those softer revenues were offset by increased guitar sales, particularly in North America, as well as higher global shipments of digital musical instruments, added Yamaha.Yamaha reported fiscal 2026 EPS of 52.7 yen, up 90.9% on year. Net profit rose to 23.7 billion yen, a lift of 76.9% on year.However, Yamaha also reported that core operating profit in fiscal 2026 declined to 31.9 billion yen, a fall off of 13.2% on year.The drop in core operating profit in the year was "mainly due to the impact of additional US tariffs, rising procurement costs, and changes in the product mix," said Yamaha.Roughly two-thirds of Yamaha's revenue, and also of profits, are derived from sales of musical instruments, and one-third from sales of audio equipment.For fiscal 2026, Yamaha reported that musical instrument sales generated revenue of 304.9 billion yen, up 3.0% on year, but core operating profit for the segment declined modestly to 21.2 billion, off 3.9% on year.The company's sales of audio equipment slipped in fiscal 2026 to 142.4 billion, off 3.6%, while core operating profit slumped to 10.8 billion, off 25%.For fiscal 2027, Yamaha forecast revenue will strike 490.0 billion yen, up 5.3% on year, while core operating black ink will reach 38 billion yen, up 19.1%.The company expects fiscal 2027 EPS to log at 63.7 yen, up 20.9% on year.Yamaha shares closed up 2.8% in Tokyo trading.