After the business lowered its operational income guidance for the entire year and its third-quarter results fell short of analyst expectations, Olympus Corp. saw its biggest decline in almost eight months.
The largest intraday decrease since June 2025 occurred Monday, when the stock fell as much as 11% in early Tokyo trading.
Considering progress through the third quarter and the effect of shipping suspensions in the surgical intervention business, the Japanese medical equipment manufacturer cut its projection to between ¥75 billion ($491 million) and ¥87 billion, Olympus said Friday. The prediction fell short of the ¥132 billion Bloomberg estimate.
In the meantime, operating earnings missed the forecast of ¥35 billion for the third quarter, falling 37% to ¥24 billion. The company stated that low sales, costs associated with layoffs, and a worsening cost-of-sales ratio in the face of increased US tariffs and voluntary product recalls were the main causes of the fall.
In a letter to customers, Shinnosuke Tokumoto of SMBC Nikko Securities Inc. stated, “This was a negative surprise, even though exceptional variables appear to have played a big role.”
After taking over last year, while Olympus was in disarray due to the abrupt departure of its former leader, Chief Executive Officer Bob White is shaking things up. In June, the US Food and Drug Administration issued a warning to healthcare providers regarding importing endoscopes and endoscope washing machines, among other medical devices made by Olympus in Japan.
In an effort to boost efficiency, White has stated that he intends to eliminate around 2,000 positions, or about 7% of the company’s worldwide workforce, and alter its region-centric organizational structure. In an effort to reduce expenses, Olympus is also examining its supply chain.
