HOYA Q2 FY2027: Operating profit jumps 31.6% as revenue rises

In the first half of FY2027, HOYA's revenue rose 13.4% year on year, operating profit increased 31.6% and profit for the period attributable to owners of the parent grew 27.3%. Operating profit growth outpaced revenue, lifting margins.

• Growth drivers: Strong performance in both Life Care and Information and Communications boosted overall revenue.
• Margin improvement: Better profitability in Life Care and higher sales from the higher-margin Information and Communications business contributed to earnings growth.
• Earnings per share: Basic earnings per share for the interim period rose to ¥408.44 from ¥313.19 a year earlier.
• Accounting presentation: HOYA early-adopted IFRS 18, and prior-year operating profit has been retrospectively restated.

The drivers of profit growth outpacing revenue included stronger demand for semiconductor and data-center products and improved Life Care profitability. The first-half pretax margin rose 3.8 percentage points from a year earlier to 34.4%, reflecting stronger earnings power as well as business expansion. Year-on-year operating profit comparisons use figures restated under the new accounting standard, so they are not directly comparable with previously reported figures.

Life Care revenue increased 8.5% year on year, while segment profit rose 24.8%. Eyeglass lens sales to chain stores were strong, and high-value-added MiYOSMART lenses also gained ground, particularly in Europe, China and South America. Contact lenses performed steadily, led by higher-value products and the hoyaONE private-label brand.

Information and Communications revenue grew 23.1% year on year and segment profit increased 27.9%. Demand for advanced semiconductor mask blanks used in EUV lithography, along with a higher share of high-end products, supported results. Glass substrates for hard disk drives also grew sharply on demand for nearline storage in data centers. Sales of FPD photomasks expanded as the China plant ramped up, while optical solutions sales grew for interchangeable lenses and CUPO.

In Life Care, premium intraocular lenses for cataract surgery performed well, but sales of medical endoscopes in the U.S. remained sluggish as HOYA continued structural reforms. Information and Communications provided strong support for companywide results, while Life Care saw steady healthcare products alongside challenges in medical devices. HOYA completed the sale of its speech synthesis software business in October 2025, so the Other business had no revenue in the first half.

HOYA for the first time disclosed a FY2027 full-year revenue forecast of ¥1,043 billion, up 10.1% from the previous fiscal year. It did not disclose forecasts for operating profit or profit attributable to owners of the parent.

The revenue forecast is not an upward revision: it is the first forecast HOYA has issued for the period. The company provided a revenue figure alone because the difference from the previous fiscal year's results may have reached its disclosure threshold. Information and Communications mainly supplies intermediate goods and components, with demand susceptible to conditions in end markets and foreign-exchange movements. HOYA plans to issue its full-year earnings forecast when it reports third-quarter results.

Total assets stood at ¥1.3012 trillion at the end of September 2026, little changed from the end of March 2026. The equity ratio attributable to owners of the parent was 77.8%, down 0.6 percentage points from fiscal year-end.

Operating cash flow exceeded the year-earlier level, mainly reflecting higher operating profit. Investing activities recorded a net outflow, as there was no investment-sale proceeds comparable to the prior-year period. Financing outflows increased with dividend payments and share buybacks. Spending on share repurchases was ¥78,057 million, up from ¥48,550 million a year earlier. HOYA has not decided its full-year dividend forecast, including the year-end dividend, and says it will take into account funding needs for capital investment, research and development and acquisitions, as well as economic conditions.

Both businesses grew in the first half, but demand in Information and Communications depends on customer end markets and the global economy. HOYA's high proportion of overseas sales also leaves it exposed to currency fluctuations. The absence of a full-year profit forecast is another important factor for investors assessing the range of possible outcomes.

• Semiconductor and electronic components markets: Many Information and Communications products are intermediate goods or components, leaving demand vulnerable to a downturn in high-tech components or consumer end markets.
• Currency fluctuations: HOYA has a high proportion of overseas sales, and exchange-rate movements affect revenue and profit. The company recorded a negative foreign-exchange impact in its operating segments in the first half.
• Medical endoscopes: Sales in the U.S. are sluggish, making progress on structural reforms and improved profitability ongoing challenges.
• Full-year earnings uncertainty: HOYA has forecast revenue only and has not disclosed profit estimates. Investors will focus on the company's next forecast in light of market conditions and foreign-exchange movements.

These risks will be reflected in results through the durability of momentum in semiconductor and data-center products, as well as progress in addressing challenges in Life Care's medical-device business. In the next quarter, investors will need to assess the sustainability of demand and the details of HOYA's full-year outlook.