Casio Q1 FY2027: Operating Profit Soars 243% on Watch Boom, Full-Year Raised

Casio's revenue for the first quarter (April–June 2026) surged 19.8% year on year to ¥74,511 million. Operating profit soared 243.5% to ¥12,811 million, while ordinary profit jumped 206.7% to ¥13,423 million and net profit attributable to owners of the parent climbed 152.0% to ¥9,377 million. The gross margin widened sharply from 41.7% to 50.2%, absorbing an 11.0% increase in SG&A expenses, pushing the operating margin to 17.2%.

The standout driver was the Timepieces segment, where the two-pronged G-SHOCK and CASIO WATCH strategy delivered double-digit global growth. Within G-SHOCK, classic 5000/5600 series and octagonal 2100 models led, alongside robust collaboration and new releases. CASIO WATCH saw the A158WA and MTP-1302D attract new users among women and young consumers, while EDIFICE mechanical models also expanded. In the Consumer segment, scientific calculators benefited from early orders for the new school term, but electronic musical instruments remained flat amid tough market conditions.

Segment external revenue and operating profit (loss) are as follows:

Timepieces: Revenue jumped 29.0% to ¥51,008 million and operating profit surged 177.3% to ¥11,776 million, achieving an operating margin of 23.1%. Both G-SHOCK and CASIO WATCH posted double-digit growth in all regions except the Middle East. G-SHOCK’s core series and CASIO WATCH’s retro models, which went viral on social media, captured new demographics. Mechanical EDIFICE watches also performed strongly, boosting brand strength and profitability.

Consumer: Revenue edged up 6.0% to ¥21,297 million, while operating profit leaped 189.1% to ¥3,392 million (margin 15.9%). EdTech (scientific calculators) grew on early back-to-school orders. Sound (electronic musical instruments) was flat due to global market headwinds. Cost efficiencies contributed to the sharp margin improvement.

Total assets stood at ¥351,353 million, virtually unchanged from end-March 2026. Cash and deposits rose to ¥109,184 million, while marketable securities declined to ¥29,998 million following a portfolio review. Receivables and inventories were kept at appropriate levels.

Net assets were ¥235,662 million, with an equity ratio of 67.1%. Depreciation was ¥2,432 million (vs ¥2,499 million a year ago).

On April 30, 2026, Casio cancelled treasury shares, reducing capital surplus and treasury stock by ¥4,457 million each. Subsequently, on May 14, the board resolved to buy back shares, with ¥6,044 million in treasury stock acquired. The full-year dividend for FY2027 has not been decided; FY2026 paid ¥45 per share (interim ¥22.5, final ¥22.5). Further increases are expected in line with profit growth.

Key risks identified by the company include:

• Global economic uncertainty: Policies in major economies and Middle East tensions could affect energy prices and logistics costs.
• Foreign exchange risk: Abrupt moves away from assumed rates of ¥155/$ and ¥180/€ would directly hit results; yen appreciation erodes overseas revenue and profit.
• Competitive landscape: Smartwatches and luxury brands vie with Casio’s watches, while Chinese low-cost rivals pressure consumer devices.
• Sound business slump: The electronic instrument market’s slow recovery demands structural reform.
• Geopolitical risks: Protectionist trade policies (tariffs) outside the Middle East could disrupt supply chains and demand.

The company plans to reinforce brand strength, raise production efficiency, and employ currency hedging to bolster resilience.

Buoyed by the strong Q1, Casio raised its FY2027 consolidated forecasts:

The upgrade reflects stronger watch momentum and one-off items including a US tariff refund. Forex assumptions are unchanged at ¥155/$ and ¥180/€. Full-year revenue is forecast to rise 8.6% to ¥300.0 billion and operating profit 47.4% to ¥34.0 billion, though second-half risks remain from the global economy and currency swings.