Nikon's First-Half Profit Surges 99% on Semiconductor Demand

Nikon Corporation reported a ¥106.58 billion net profit for the first half of fiscal year 2027, a substantial 99.0% increase year-over-year, as strong demand for semiconductor manufacturing equipment bolstered its precision machinery segment. The results signal a continued recovery for Nikon, capitalizing on the ongoing investment in advanced chip technologies.

Revenue for the period reached ¥334.66 billion, a 6.9% increase compared to the same period last year. While the imaging business experienced a slight decline due to softening demand in the digital camera market, the precision machinery division saw a 29.7% revenue jump, fueled by both FPD exposure equipment and ArF exposure systems for semiconductor manufacturing. The healthcare and industry sectors also contributed to the positive results, benefiting from favorable exchange rates and robust sales.

The company's operating profit swung dramatically from a ¥4.83 billion loss in the same period last year to a ¥8.94 billion profit. This improvement was driven not only by increased revenue but also by cost controls and a favorable business environment. Digital Manufacturing also saw a reduced operating loss, benefitting from increased orders and structural reforms. Despite increased overall debt, the company maintained a healthy cash balance of ¥145.83 billion.

Nikon has maintained its full-year profit forecast, indicating confidence in the continued strength of the semiconductor market. While challenges remain in the imaging sector, the company’s strategic focus on precision machinery and healthcare positions it to benefit from long-term growth trends. The company’s commitment to research and development, with an investment of ¥34.09 billion in the first half, underscores its commitment to innovation and future competitiveness.