Nikon’s latest financial results outline a significant drop in operating profit year-over-year, due mainly to significant one-time costs. The company also says that tariffs could reduce its profit for the current fiscal year by nearly $70 million.
Before diving into the actual financial results and presentation, it is worth making a brief detour concerning tariffs. Much like Sony, Nikon says that U.S. tariffs could have a significant impact on its bottom line. However, Nikon stopped short of officially adjusting its outlook for the next fiscal year, citing a “high level of uncertainty.” However, Nikon adds that it is currently expecting tariffs to reduce its operating profit by 10 billion yen, which is $68.5 million at current exchange rates. That’s huge, and not too surprising given how important the United States is to Nikon’s revenue — the U.S. alone accounts for around a quarter of Nikon’s total revenue.
As for Nikon’s financial performance, the company’s operating profit for the fiscal year ending March 31, 2025 was 2.4 billion yen, which is $16.4 million. If Nikon’s tariff expectations come true, that is a potentially scary situation for Nikon.
Year-over-year, operating profit fell 37.3 billion yen (nearly $256 million). Nikon’s operating profit “significantly underperformed” relative to the company’s expectations, which was an operating profit of 19 billion yen ($130 million), due to one-time costs, including the acquisition of RED for $85 million, repair cots for MRMC assets, restructuring, and more. Nikon spent 27.2 billion yen in FY2025 on one-time costs, a whopping $186 million. The company does not anticipate the number for FY2026 to be anywhere near that.
Looking specifically at the company’s imaging products business, which accounts for around 40% of Nikon’s revenue, the results were okay. The segment earned an operating profit of 46.5 billion yen ($319 million), a bit less than last year. Nikon expects that FY2026 will feature a “steady” digital interchangeable lens camera market and flat revenue. Nikon cites the Z50 II and Z6 III cameras as particularly successful product launches.
It’s not all sunshine and roses, though. Nikon describes its imaging products business as adversely affected due to “fierce competition” in the mirrorless market, rising prices, and delays in “procuring components.” These “may lead to future deteriorating in market conditions,” Nikon says.
As reported by The Phoblographer, Nikon also published a longer-term business outlook alongside its fiscal year results. In that presentation, the company noted its plans to continue to trickle Z9 features down to more affordable products, like the recent Z50 II.
The company also says it will “leverage RED to begin selling Nikon Z-mount products aimed at accessible filmmaking, high-end video production, and creators’ markets.” Nikon has ambitious plans to sell more cameras and lenses to “youth” and “new users,” especially in the mid- to high-end market, which includes cameras like the Z6 III, Z8, Zf, and Z9.
It is worth noting that The Phoblographer‘s coverage says in its headline, “Nikon Aims to Launch 45 New ILC Lenses, Reveals Fiscal Year Report,” which is not accurate. As the article body itself reports, Nikon’s presentation says it hopes to “expand the mirrorless camera lens lineup to about 45 lenses.” Nikon currently has nearly that many if teleconverters, FTZ adapters, and special edition lenses don’t count. Nikon has 42 distinct lenses in its lineup.
Image credits: Nikon. Featured image by Jaron Schneider.
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