Terumo Reports 19.9% Revenue Growth in Q1, Raises Full-Year Profit Guidance
The Japanese medical device maker posted strong international sales and benefited from U.S. tariff refunds and settlement proceeds, prompting upward guidance revisions.
Strong Q1 Performance Across Geographies
Terumo Corporation reported revenue of ¥311.8 billion for the three months ended June 30, 2026, representing a 19.9% increase year-on-year, according to its consolidated financial results filed August 7 (Tanshin filing, 2026-08-07). The Tokyo-listed medical device manufacturer, with a market capitalization of approximately $22 billion, saw particularly robust overseas performance, with international revenue climbing 24.1% compared to the prior-year period.
Domestic Japanese revenue grew 3.7%, supported by strong sales in the Terumo Neuro division, Hospital Care Solutions division, and Pharmaceutical Solutions division (Tanshin filing, 2026-08-07). Chief Executive Officer Hikaru Samejima presided over the results, which demonstrated strength across the company's major business segments.
Profitability Surge Driven by Tariff Refund
Adjusted operating profit reached ¥79.6 billion, a 34.7% increase from the same quarter last year (Tanshin filing, 2026-08-07). The company's gross profit totaled ¥178.5 billion, up 22.7%, "primarily due to higher revenue and the refund of U.S. tariffs" (Tanshin filing, 2026-08-07).
Profit for the period attributable to owners of the parent increased significantly, though the filing noted that operating profit and net profit gains also reflected "the recognition of settlement proceeds" in addition to higher gross profit (Tanshin filing, 2026-08-07). Basic earnings per share came in at ¥47.73 for the quarter.
Terumo defines adjusted operating profit as operating profit excluding amortization of intangible assets from business combinations and non-recurring items, using this metric "for management purposes to assess the performance of each business" (Tanshin filing, 2026-08-07).
Segment Performance and New Organ Technologies Unit
The Cardiac and Vascular Company generated ¥188.1 billion in revenue, up 19.2%, with overseas sales growing 21.2% driven by the Terumo Interventional Systems division's access devices (Tanshin filing, 2026-08-07). The Medical Care Company posted ¥56.6 billion in revenue, a 12.3% increase, with particularly strong 30.0% growth in European markets.
The Blood and Cell Technologies Company saw revenue rise 17.7% to ¥60.8 billion, supported by solid performance in blood collection products and 18.2% overseas growth (Tanshin filing, 2026-08-07).
A new reportable segment, Terumo Organ Technologies, contributed ¥6.2 billion in revenue for the quarter. This unit reflects the October 29, 2025 acquisition of OrganOx Limited, which became a wholly owned subsidiary, with results consolidated from the acquisition date (Tanshin filing, 2026-08-07).
Balance Sheet and Guidance Revision
Total assets stood at ¥2,374.1 billion as of June 30, 2026, an increase of ¥61.9 billion from the fiscal year-end, primarily due to higher cash balances and receivables (Tanshin filing, 2026-08-07). Cash and cash equivalents rose ¥34.1 billion to ¥314.6 billion, supported by ¥74.5 billion in operating cash flow.
Terumo announced it "revised upward our full-year consolidated financial guidance for adjusted operating profit, operating profit, and profit for the year attributable to owners of the parent, reflecting the refund of U.S. tariffs and the recognition of settlement proceeds" (Tanshin filing, 2026-08-07). The company maintained its dividend guidance and assumes exchange rates of 155 yen per U.S. dollar and 180 yen per euro for the full fiscal year.
According to MarginX data, Terumo is scheduled to pay a cash dividend of ¥18.0 per share on September 29, 2026, and is expected to report first-half fiscal 2027 results on November 11, 2026.
This article was generated by MarginX from the Tanshin filing on 2026-08-07. It is not investment advice.