FUJIFILM's Q1 Earnings Decline Y/Y, Imaging Solutions Boost Revenues
Revenues of ¥749.5 billion inched up 0.1% year over year. The stable performance was primarily driven by strong performances in Bio CDMO, Semiconductor Materials and Imaging segments, offsetting the impact of foreign exchange fluctuations.
Segment Details of FUJIY
In June 2024, the company established the Advanced Functional Materials division by integrating its display materials, industrial products and fine chemicals businesses.
In the fiscal first quarter, Healthcare segment revenues were ¥228.5 billion, down 2.9% from the year-ago quarter.
Within Healthcare, Medical Systems revenues were down 8.7% year over year to ¥144 billion. Revenues decreased primarily due to lower demand for medical consumables in China and the absence of large-scale orders for X-ray imaging diagnostic equipment, which had contributed significantly in the previous year. However, this decline was partially offset by strong sales of medical IT solutions such as PACS, along with solid performance in in-vitro diagnostics (IVD) and endoscopes.
Bio CDMO revenues were up 12.8% to ¥53.2 billion. Revenues grew primarily due to the commencement of operations at the new Danish facilities and the resumption of operations at the Texas facilities. This growth was partially offset by the impact of regularly scheduled maintenance at the existing Danish facilities.Life sciences revenues grew 3.2% to ¥31.3 billion, driven by a recovery in the culture media market and robust sales of reagents.
Fujifilm Holdings Corp. Price, Consensus and EPS Surprise
Fujifilm Holdings Corp. price-consensus-eps-surprise-chart | Fujifilm Holdings Corp. Quote
In the Electronics segment, revenues amounted to ¥102.1 billion, down 0.9% year over year. Semiconductor Materials revenues rose 3.8% to ¥64.7 billion. Revenues grew on the back of strong sales in advanced applications, particularly in CMP slurry. AF materials revenues amounted to ¥37.5 billion, down 8.2% year over year. This was due to a decline in data tape sales following significant purchases by IT companies in the previous year, while strong sales of new materials boosted the performance of display materials.
The Business Innovation Solutions segment's revenues were ¥273.6 billion, decreasing 2.3% from the year-ago quarter's figure. Business solutions moved up 7% on a year-over-year basis to ¥75.8 billion. Revenues were supported by strong sales of digital transformation (DX) solutions and services to municipalities in Japan, along with increased business process outsourcing (BPO) revenue from markets outside Japan.
Office solutions and Graphic Communications revenues decreased 5.3% and 5.6% on a year-over-year basis to ¥120 billion and ¥77.8 billion, respectively. In the Office Solutions segment, revenues were adversely impacted by a strategic reduction in the range of low-profit products sold in China. Within Graphic Communications, analog printing faced weaker demand for plate-making and the discontinuation of low-margin products, while inkjet printhead sales declined due to reduced demand from the ceramics market.
The Imaging Solutions segment's revenues were ¥145.3 billion, up 11.2% from the year-ago quarter's level. Consumer Imaging and Professional Imaging revenues rose 3.7% and 21.2% on a year-over-year basis to ¥77.3 billion and ¥68 billion, respectively. In the Consumer Imaging segment, strong sales of Instax instant photo systems drove growth, supported by the popularity of models such as the Instax WIDE 400 and Instax WIDE Evo, along with contributions from the newly launched Instax mini 41. In the Professional Imaging segment, robust sales of FUJIFILM X and GFX series digital cameras contributed to strong performance, with particularly high demand for the FUJIFILM X100VI and X-M5 models, as well as positive contributions from the newly introduced FUJIFILM GFX100RF and X half.
FUJIY's Operating Details
In the fiscal first quarter, selling, general and administrative expenses decreased 4.6% to ¥196.6 billion. Research and development expenses increased 0.9% to ¥40.6 billion.
Operating income increased 21.1% year over year to ¥75.3 billion, primarily due to higher sales in the Imaging segment, while the effect of U.S. tariff policies remained minimal.
FUJIY's Balance Sheet & Cash Flow
As of June 30, 2025, cash and cash equivalents were ¥160 billion, down from ¥172.1 billion as of March 31, 2025.
Total debt was ¥749.8 billion as of March 31, 2025, compared with ¥685.9 billion on as of March 31, 2025.
For full-year 2025, FUJIFILM is planning an annual dividend of ¥70 per share, marking the 16th consecutive year of dividend increases.
FUJIY's Guidance
FUJIFILM reiterated its guidance for fiscal 2025. The company expects revenues of ¥3,280 billion for fiscal 2025, indicating growth of 2.6% year over year. The operating income is anticipated to be ¥331 billion, implying 0.3% growth. Net income is expected to increase 0.4% year over year to ¥262 billion.
For fiscal 2025, revenues from Healthcare, Electronics, Business Innovation and Imaging Solutions are anticipated to be ¥1,110 billion, ¥420 billion, ¥1,220 billion and ¥540 billion, respectively.
Zacks Rank of FUJIY
Currently, FUJIFILM has a Zacks Rank #3 (Hold). In the past six months, shares have soared 8.8% compared with the Zacks Semiconductor Equipment – Photomasks industry's decline of 13.4%. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
Recent Performance of Other Companies in Tech Space
Blackbaud, Inc. BLKB reported second-quarter 2025 non-GAAP earnings per share (EPS) of $1.21, which surpassed the Zacks Consensus Estimate by 15.2%. The bottom line increased around 12% year over year.
Total revenues decreased 2.1% year over year to $281.4 million. This was due to the divestiture of EVERFI. The top line surpassed the Zacks Consensus Estimate by 1.3%.
In the past year, shares of BLKB have lost 17.5%.
Fortive Corporation FTV reported second-quarter 2025 adjusted EPS of 58 cents from continuing operations, which missed the Zacks Consensus Estimate of 60 cents. The bottom line increased 3.6% year over year.
Revenues declined 0.4% year over year to $1.02 billion. The top line beat the Zacks Consensus Estimate by 0.8%. Core revenues decreased 0.7% year over year.
In the past, shares of FTV have declined 27.7%
Flex Ltd. FLEX reported first-quarter fiscal 2026 adjusted EPS of 72 cents, which surpassed the Zacks Consensus Estimate by 14.3%. The bottom line compared favorably with 51 cents posted in the prior-year quarter.
Revenues increased 4.1% year over year to $6.6 billion. Also, it beat the consensus mark by 5.6%. The uptick was driven by strong data center growth in both the cloud and power end markets.
Shares of FLEX have surged 79.9% in the past year.
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