Japan Tech Conglomerates

研报英文原文证据摘录

Japan Tech Conglomerates

Sharp (progress with FY25-27 medium-term plan): 9 June

In 2025, Sharp focused on building the foundations for renewed growth through

structural reform and improvement in its finances, with the primary objective of

improving its earnings structure. By contrast, in 2026, it has clearly outlined a strategy of

strengthening growth on this basis and transforming its business structure with AI at the

core. It is simultaneously pursuing the transformation of existing businesses into service-

based offerings and the launch of new businesses, marking a shift in focus from a simple

turnaround to a growth strategy.

Smart Life: Despite deteriorating market conditions, it secured profit growth in B2B and

the US business last year, while also making progress in building out its AIoT platform.

Building on this in FY26, it aims for sales and profit growth through AIoT monetization

and global expansion. Expanding service revenues through generative AI and the use of

customer data will be a key theme, marking an evolution from straightforward product

differentiation to a service-based business model.

Smart Workplace: Last year, earnings were supported by higher PC sales thanks to

Win11 replacement demand, but the business structure remained heavily dependent on

hardware. In FY26, Sharp expects lower sales and profit due to the absence of this

special demand. Meanwhile, it will accelerate its shift toward service businesses such as

LCM, ERP, and managed IT. The company will also use M&A to strengthen its recurring

revenue model, marking a major change in its transition from a hardware sales-centric

business to a solutions company.

Display: The division achieved a narrower loss through structural reforms last year and

laid the groundwork for a business turnaround.