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Nikon’s Profit Slumps as It Reshapes Portfolio and Cuts Dividend

Story Highlights
  • Nikon’s full-year revenue declined and operating profit weakened, with Imaging Products and Precision Equipment still the chief earnings drivers amid overall margin pressure.
  • The company is reallocating resources toward precision, industrial and healthcare businesses, sustaining high R&D while trimming capital outlays and halving its annual dividend to conserve cash.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Nikon’s Profit Slumps as It Reshapes Portfolio and Cuts Dividend

Meet Samuel – Your Personal Investing Prophet

Nikon ( (JP:7731) ) has provided an announcement.

Nikon reported consolidated revenue of ¥677.1 billion for the fiscal year ended March 31, 2026, down from ¥715.2 billion a year earlier, with operating profit slipping to ¥2.4 billion from ¥5.8 billion, reflecting pressure on overall profitability despite resilience in key units. The Imaging Products and Precision Equipment businesses remained the main earnings drivers, while Industry and Digital Manufacturing segments continued to invest in R&D and capital expenditure amid a segment renaming and internal transfer of Nikon Vision Co., Ltd. to the Imaging division, underscoring a strategic realignment toward growth areas.

Segment data show Imaging Products revenue at ¥290.0 billion with operating profit of ¥16.7 billion, and Precision Equipment revenue at ¥167.2 billion with a modest profit, supported by unit sales of digital cameras, lenses and lithography systems across new and refurbished lines. The company maintained significant R&D spending of ¥77.1 billion and cut its annual dividend forecast to ¥20 per share from the prior year’s ¥40, signaling caution amid weaker earnings, currency headwinds and the need to fund technology development in semiconductor, FPD, and healthcare markets.

Across segments, capital expenditures declined versus the prior year but remained focused on precision and healthcare operations, while depreciation and amortization stayed broadly stable, suggesting a measured investment cycle rather than aggressive capacity expansion. Employee numbers held roughly flat at just under 20,000 globally, indicating operational stability as Nikon fine-tunes its portfolio and cost base to balance cyclical demand in imaging and industrial markets with long-term growth ambitions in advanced manufacturing and medical technologies.

The most recent analyst rating on (JP:7731) stock is a Hold with a Yen1800.00 price target. To see the full list of analyst forecasts on Nikon stock, see the JP:7731 Stock Forecast page.

More about Nikon

Nikon Corporation is a Japanese manufacturer specializing in imaging products, precision equipment, healthcare instruments and industrial solutions, including digital cameras, lithography systems and optical devices. The company operates globally with a workforce of roughly 20,000 employees and continues to pivot from traditional cameras toward semiconductor, FPD lithography, and healthcare-related businesses.

Average Trading Volume: 1,579,466

Technical Sentiment Signal: Buy

Current Market Cap: Yen562.7B

For detailed information about 7731 stock, go to TipRanks’ Stock Analysis page.

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