Strong GIS Growth and Margin Expansion Support Full-Year Guidance

TOKYO, Aug. 7, 2026 /PRNewswire/ -- Olympus Corporation (Olympus), a global MedTech company committed to advancing endoscopy-enabled care, today reported first quarter fiscal 2027 results for the three months ended June 30, 2026. First quarter revenue was 240.4 billion Japanese yen, up 16% year on year and up 5% in constant currency. Strong momentum in the Gastrointestinal Solutions (GIS) business drove growth. While the Surgical and Interventional Solutions (SIS) business was affected by voluntary ship holds, core franchises Urology and Respiratory delivered revenue growth. Olympus maintains the full-year FY2027 guidance provided in May 2026.

First Quarter Key Highlights

• Revenue of ¥240.4 billion, up 16% year on year (up 5% in constant currency)
• GIS revenue of ¥168.4 billion, up 21% year on year (up 10% in constant currency)
• SIS revenue of ¥71.9 billion, up 7% year on year (down 4% in constant currency)
• Adjusted operating profit of ¥30.7 billion, up 133% year on year; adjusted operating margin of 12.8%, up 6.4 percentage points year on year
• Adjusted EPS of ¥20, up 130% year on year

First Quarter Financial Results

On a consolidated basis, revenue was ¥240.4 billion, up 16% year on year and up 5% in constant currency, with this increase also aided by a comparatively low prior-year base.

Continued double-digit growth in GIS across Olympus' core markets, particularly in North America, Europe, and APAC, was the primary driver, with GIS revenue reaching ¥168.4 billion, up 21% year on year. North America delivered a strong quarter, reflecting continued customer demand supported by strong sales execution. This growth offset an approximately ¥13 billion temporary revenue headwind, primarily in SIS, related to ship holds and FDA-related import alerts. Excluding this temporary impact, the underlying business delivered a strong start to the year.

SIS revenue was ¥71.9 billion, up 7% year on year. Despite the impact of voluntary ship holds and FDA-related import alerts, SIS continued to benefit from strong demand. This was driven by the strength of the product portfolio, particularly with the continued growth in the core franchises of Urology and Respiratory, which improved 14% and 15% year on year, respectively. On a constant currency basis, SIS revenue declined 4% due to the temporary impact of voluntary ship holds and FDA-related import alerts. The majority of ship-hold-affected products are expected to resume shipment in the second half of this fiscal year.

Adjusted operating profit was ¥30.7 billion, up 133% year on year, with adjusted operating margin of 12.8%, an increase of 6.4 percentage points year on year (5.7 percentage points in constant currency). This improvement was driven by strong GIS revenue growth, an 8.9 percentage point improvement to 23.3% in GIS adjusted operating margin, and lower SG&A reflecting R&D expenditure timing and personnel expense savings from the position optimization program.

Adjusted EPS was ¥20, up 130% year on year.

Quality Assurance and Regulatory Update

Olympus is continuing its constructive engagement with the FDA and the implementation of its quality remediation program. The FDA has not yet issued a classification for the inspections conducted last fall. Olympus will continue to cooperate fully with the FDA and assess any feedback or classification once received. The majority of ship-hold-affected products are expected to resume shipment in the second half of FY2027, consistent with the assumption embedded in the full-year guidance. The full-year guidance continues to incorporate the company's current assumptions regarding quality remediation activities and associated expenditures.

As previously announced, effective August 1, 2026, Brian Barry assumed the role of Chief Quality Officer and will lead the next phase of Olympus' efforts to further strengthen quality systems and the quality culture across the organization.

FY2027 Guidance

Olympus maintains the full-year FY2027 guidance provided in May 2026. The strong first-quarter performance is consistent with the assumptions underlying the company's full-year guidance.

The company continues to expect structural tailwinds in the second half of the year, including the anticipated normalization of ship-hold-related impacts, the contribution from new product launches, and the scaling of efficiency gains. These drivers underpin the company's expectations for the remainder of the year and support its confidence in delivering on its full-year guidance commitments.

"We experienced a solid start to the year, with continued execution across our key markets and growth aided by lower prior-year comparisons," said Michael Parenti, Executive Officer and Chief Financial Officer of Olympus. "This confirms that we are building momentum. While it remains early in the year, our first-quarter performance and expected second-half tailwinds support our confidence in maintaining our current full-year guidance. We will provide a further update as second-half visibility improves."

First-quarter FY 2027 financial results materials are available here.

About Olympus

At Olympus, we are committed to Our Purpose of making people's lives healthier, safer and more fulfilling. As a global medical technology company, we partner with healthcare professionals to provide innovative solutions and services for early detection, diagnosis and minimally invasive treatment, aiming to improve patient outcomes by elevating the standard of care in targeted disease states.

For more than 100 years, Olympus has pursued a goal of contributing to society by producing products designed with the purpose of delivering optimal outcomes for its customers around the world. For more information, visit the Olympus website and follow the Olympus LinkedIn account.

This material contains forward-looking statements that reflect management's current views, plans, and expectations based on information available at the time of preparation. These forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, future business decisions, and other internal and external factors that may cause the Company's actual results, performance, achievements, or financial position to be materially different from any future results expressed or implied by these forward-looking statements.

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SOURCE Olympus Corporation