Shimadzu Corporation (7701) 4Q results: Risk of Middle East impact in FY2026, but measuring instruments seem firm

Research evidence excerpt

Shimadzu Corporation (7701) 4Q results: Risk of Middle East impact in FY2026, but measuring instruments seem firm

J P M O R G A N Asia Pacific Equity Research

13 May 2026

Shimadzu Corporation (7701) Overweight

7701.T, 7701 JP

4Q results: Risk of Middle East impact in FY2026, but Price (12 May 26):¥3,672

measuring instruments seem firm Price Target (Dec-26):¥4,400

Neutral: Shimadzu reported 4Q results on May 12. 4Q operating profit was ¥23.5 Japan Equity Research

billion (−4.9% YoY; Bloomberg consensus estimate: ¥22.2 billion). FY2026

Medical Technologies & Services

operating profit guidance of ¥76 billion (Bloomberg consensus estimate: ¥78.3

billion) includes a ¥4 billion negative impact from the Middle East conflict, but Naoko Saito AC

Shimadzu said it does not factor in earnings from Tescan, which it says it plans to (81-3) 6736-8693

naoko.saito@jpmorgan.com

acquire. 4Q sales in the analytical and measuring instruments (AMI) segment

Seiji Wakao, Ph.D.

(excluding forex effects) rose 5% YoY in North America and 2% YoY in China; (81-3) 6736-8612

despite prior concerns about weak market prices, sales seem steady. The impact seiji.wakao@jpmorgan.com

of the Middle East conflict is a risk factor, but it seems the share price has already JPMorgan Securities Japan Co., Ltd.

corrected, and given firm 4Q sales in the AMI segment, we think the stock’s near-

term reaction will be limited.

• 4Q earnings: We think 4Q sales were above plan. 4Q sales were strong for

AMI and aircraft equipment but seem somewhat weak for industrial machinery

and medical systems. In the AMI segment, which we believe is a key factor for

the share price, (1) in North America, although the government and academic

markets remain weak due to the impact of US policy, the pharmaceutical