Harmonic Drive Systems Sees Profit Slump but Projects Strong Rebound in FY 2027

The latest update is out from Harmonic Drive Systems ( (JP:6324) ).

Harmonic Drive Systems reported a 7% rise in net sales to ¥59.6 billion for the year ended March 31, 2026, but operating profit was only ¥2.6 billion and profit attributable to owners of the parent dropped 53.7% to ¥1.6 billion, weighing on earnings per share. Despite weaker profits, the company’s equity ratio improved to 72.2% and net assets rose, while cash and cash equivalents decreased to ¥19.1 billion as operating inflows were offset by reduced investing and continued financing outflows.

The company kept its annual dividend unchanged at ¥20 per share, which pushed the payout ratio to 117.7%, signaling a commitment to shareholder returns even as earnings softened. Looking ahead to the year ending March 31, 2027, Harmonic Drive Systems forecasts double-digit growth with net sales expected to climb to ¥68 billion and profit attributable to owners of the parent to ¥4.5 billion, implying a sharp rebound in margins that, if achieved, could strengthen its financial standing and support its role in the precision motion control market.

The most recent analyst rating on (JP:6324) stock is a Buy with a Yen10000.00 price target. To see the full list of analyst forecasts on Harmonic Drive Systems stock, see the JP:6324 Stock Forecast page.

More about Harmonic Drive Systems

Harmonic Drive Systems Inc. is a Japan-based manufacturer listed on the Tokyo Stock Exchange that specializes in precision motion control components. The company focuses on high-precision gear and drive technologies used in industrial automation, robotics and related sectors, serving global manufacturers that demand compact, accurate and reliable drive systems.

Average Trading Volume: 1,775,971

Technical Sentiment Signal: Strong Buy

Current Market Cap: Yen683.5B

Learn more about 6324 stock on TipRanks’ Stock Analysis page.