F3/27 1Q Results: Diabetes Management Drives Strong Start for F3/27

Research evidence excerpt

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M

Update

August 6, 2026 05:20 PM GMT

Morgan Stanley MUFG Securities Co., Ltd.+

PHC Holdings (6523) | Japan

Ryotaro Hayashi

Equity Analyst

F3/27 1Q Results: Diabetes

Management Drives Strong

Start for F3/27

Erina Tokunaga

Research Associate

AlphaSignals Earnings Reaction

PHC Holdings (6523.T, 6523 JT)

Strengthens our thesis

Meaningful upside

Modest revision higher

Impact to our thesis

Financial results versus consensus

Direction of next 12-month

consensus EPS

Medical Technology | Japan

Stock Rating

Industry View

Price target

Shr price, close (Aug 6, 2026)

Mkt cap, curr, basic (bn)

Avg daily trading value (bn)

Source: Company data, Morgan Stanley Research

Key Takeaways

Overweight

In-Line

¥1,350

¥1,088

¥137.6

¥0.3

1Q OP materially exceeded both consensus and our forecast (Exhibit 1).

Related report

A key surprise was Diabetes Management, where sales (at constant currency)

PHC Holdings: F3/26 4Q Results: We Anticipate

rose 7% YoY, versus our forecast for 8% decline.

a Future Guidance Hike (13 May 2026)

We had expected sales declines following the CGM business divestiture, but

growth in BGM sales in Europe and N. America more than offset the impact

(Exhibit 1).

We have viewed F3/27 guidance, which assumes declining BGM sales, as

conservative since the start of the year. 1Q results reinforced our view here.

Exhibit 1:

F3/27 1Q results highlights

Q1

F3/27

Q3

Q2

Q4

Full-year

Con

e

F3/28

Full-year

Con

(yen bn)

Con

e

Actual

e

Ce

Sales

Diabetes Management

Japan

N.America ($mn)

Europe (€mn)

Other ($mn)

Epredia ($mn)

PHCbi ($mn)

LSI Medience

Wemex

85.4

89.1

23.8

0.8

32

71

30

96

80

17.1

12.5

90.7

27.8

0.9

35

88

31

90

75

17.3

11.6

92.4

25.2

0.8

34

77

33

98

82

17.0

14.0

96.0

26.6

0.7

38

82

34

98

92

17.3

13.8

97.9

25.4

0.7

34

79

34

103

100

15.9

14.2

359.7

92.3

367.6

375.3

100.9

3.0

138

308

132

395

353

67.4

54.6

374.3

382.5

100.0

3.0

140

299

138

415

363

68.4

56.2

e

Operating profit

5.1

5.8

10.4

7.4

9.1

10.1

Adjusted EBITDA

12.7

17.3

14.3

15.9

17.0

Ce = Company estimates, Con = Bloomberg consensus, e = Morgan Stanley Research estimates

27.0

53.6

28.4

32.4

59.9

30.9

36.2

63.3

…