Medical Devices and Testing Equipment FY2026 Full Year: Asahi Intecc pulls ahead

• Overseas demand and regional differences separated the winners from the laggards. Nihon Kohden grew sales 4.3% from a year earlier as overseas markets expanded. Sysmex, by contrast, saw sales fall 1.7%, hit by efforts to restrain medical spending in China.
• Growth investment weighed on earnings at some companies. Nihon Kohden's operating profit fell 9.5% as higher wages, research and development spending, and costs for a new production site piled up. Higher sales did not translate into higher profit.
• Product strength and productivity drove margin differences. Asahi Intecc's operating margin was 31.1%, well ahead of second-ranked Nakanishi at 17.4%, reflecting its high-value-added products and productivity improvements.
• Impairment charges and currency movements also shaped results. Nakanishi posted a net loss after an impairment, while the weaker yen helped Asahi Intecc increase both sales and profit. Fiscal year-ends range from December 2025 to June 2026, so averages should be treated as indicative.

Asahi Intecc had the strongest momentum. Sales rose 21.2% from a year earlier to ¥145.4 billion, the fastest growth among the four companies. Operating profit jumped 50.3% to ¥45.2 billion, in sharp contrast with Sysmex's 40.8% decline. Asahi Intecc's 31.1% operating margin also topped Nakanishi's 17.4%.

Sysmex faced the toughest conditions in its core business. Sales were ¥500 billion, the highest among the four, but fell 1.7% year on year. Operating profit dropped 40.8% to ¥51.8 billion, the steepest decline. Weakness in China, a higher cost ratio, increased expenses and impairment charges all weighed on results.

Nakanishi also struggled at the net-income level. Sales rose 5.4%, but a ¥13.77 billion impairment charge pushed it to a ¥2.4 billion net loss. Operating profit declines should be distinguished from one-off losses when assessing the results.

• Sysmex is launching a new medium-term management plan and expects support from M&A. It forecasts operating profit of ¥58 billion for the next fiscal year, up from ¥51.8 billion this year, but reducing its reliance on China remains a challenge.
• Nihon Kohden is pursuing overseas growth alongside a profit-recovery effort. Sales expanded, particularly in North America, but operating profit fell 9.5% year on year. Investors will watch whether spending on research and development and new sites can translate into future earnings.
• Asahi Intecc capitalized on rising demand for catheters, lifting sales 21.2% and operating profit 50.3%. It is strengthening capacity and improving efficiency, including through the launch of its Nanning plant.
• Nakanishi grew its surgical business 28.1% year on year. Sales increased across all four businesses, but an impairment in its DCI business drove the net loss. Reviving that business and finding growth beyond dentistry will be key.

• Medical spending controls and reimbursement changes. Policy measures in China weighed on Sysmex's sales. Changes to local healthcare systems can affect both demand and selling prices.
• Currency and geopolitical risks. The weaker yen benefited Asahi Intecc, but shifts in exchange rates and U.S.-China tensions can disrupt procurement costs and sales plans.
• Rising labor and facility costs. Wage increases and expenses for new sites squeezed Nihon Kohden's profit. Added production capacity can remain a burden if utilization does not rise.
• Post-acquisition integration and impairment. Nakanishi recorded a ¥13.77 billion impairment in its DCI business. Delays in a purchased business's growth or in meeting targets can hurt earnings and asset values.
• Product development and investment returns. Research and digitalization are essential to growth, but their costs often come first. Companies need to turn investment into increased sales or better margins.

Sysmex remained the sales leader at ¥500 billion despite a 1.7% year-on-year decline. Asahi Intecc, however, ranked first for both sales growth and operating margin. Scale and earning power did not translate into the same rankings.

Nihon Kohden's sales rose 4.3%, while operating profit fell 9.5%. Nakanishi also increased sales 5.4%, but operating profit declined 3.5%. Revenue growth alone does not measure profitability. With fiscal year-ends differing across the companies, margins and one-off losses should be considered alongside headline sales.

Growth in medical devices depends not only on product development but also on overseas expansion and manufacturing efficiency. Asahi Intecc's high margin shows the value of selling differentiated products globally. At companies such as Nihon Kohden, where growth investment is running ahead of returns, employees may find opportunities in research and development or launching new production sites.

When choosing an employer, look beyond sales growth to regional exposure and margins. Dependence on China or currency movements, post-acquisition integration, and approaches to investing in people can also offer clues about future roles and workplace changes.