Omron Corporation raised its full-year profit target by 29% after a first quarter in which AI-linked chip and data-center orders sharply lifted operating profit at its industrial-automation unit. The Kyoto-based sensor and controls maker now expects operating profit of ¥80.0bn for the year to March 2027, up from an initial plan of ¥62.0bn. It also lifted its revenue target to ¥880.0bn from ¥820.0bn and its net profit forecast to ¥40.5bn from ¥27.5bn.
The upgrade follows a quarter, April to June 2026, in which group revenue rose 26.1% year on year to ¥209.9bn and operating profit jumped 226.0% to ¥18.9bn, pushing the operating margin to 9.0% from 3.5% a year earlier. Profit attributable to shareholders more than doubled, up 131.1% to ¥10.6bn.
Industrial Automation, which sells programmable controllers, sensors and inspection equipment, did most of the work. Its quarterly operating profit doubled to ¥21.3bn on external revenue of ¥131.2bn, up 37.2%, as makers of advanced semiconductors expanded capital spending on generative-AI demand and battery producers ordered more equipment for data-center energy-storage systems. Omron also credited new products and closer distributor relationships for widening its customer base. An internal order-tracking index for the unit climbed to 1.67 in the quarter, continuing an uptrend that began in the second half of the year to March 2026.
Healthcare, mostly blood-pressure monitors, grew too: revenue rose 16.7% to ¥36.4bn and operating profit more than doubled to ¥2.4bn on stronger online sales promotions in Japan and other parts of Asia. Social Systems, which covers home battery storage and rail equipment, was the drag: revenue fell 2.0% to ¥24.2bn and operating profit dropped 62.5% to ¥0.1bn as competition in the residential renewable-energy market intensified.
Guidance revised by segment
| Segment | Revised full-year revenue | Vs initial plan (revenue) | Revised full-year operating profit | Vs initial plan (profit) |
|---|---|---|---|---|
| Industrial Automation | ¥500.0bn | +13.6% | ¥65.0bn | +47.7% |
| Healthcare | ¥155.0bn | +3.3% | ¥15.5bn | +3.3% |
| Social Systems | ¥148.0bn | -3.3% | ¥19.5bn | -13.3% |
| Data Solutions | ¥62.0bn | unchanged | ¥5.0bn | unchanged |
Industrial Automation absorbed nearly all of the upgrade, with its full-year operating profit target raised 47.7% to ¥65.0bn. Social Systems moved the other way: Omron cut that unit's full-year operating profit target by 13.3% to ¥19.5bn, saying subsidy-backed demand for home storage batteries remains firm but rival makers are competing harder on price.
For the rest of the year, management said it expects semiconductor and secondary-battery capital spending to keep running above its original assumptions from the second quarter onward, extending the pattern set in the first quarter. The company's net profit figures also carry a widening loss from operations it reclassified as discontinued after deciding in March to transfer its electronic-components business, a detail unrelated to the automation upgrade but one that keeps headline net income from tracking operating profit one-for-one.