Olympus Drops After Full-Year Operating Income Forecast Cut

(Bloomberg) -- Olympus Corp. fell the most in nearly eight months after the company cut its operating income guidance for the full year and third-quarter earnings missed analyst estimates.

The stock dropped as much as 11% in early Tokyo trading Monday, the biggest intraday decline since June 2025.

The Japanese medical device maker slashed its outlook to between ¥75 billion ($491 million) and ¥87 billion, taking into account progress up to the third quarter and the impact of shipment suspensions in the surgical intervention business, Olympus said Friday. The forecast missed the Bloomberg consensus of ¥132 billion. 

Meanwhile, operating profit for the third quarter fell 37% to ¥24 billion, missing the estimate of ¥35 billion. The decline was driven by weaker sales, expenses tied to job cuts and a worsening cost-of-sales ratio amid higher US tariffs and voluntary product recall, the company said. 

“While special factors appear to have played a major role, this was a negative surprise,” SMBC Nikko Securities Inc. Shinnosuke Tokumoto wrote in a note to clients.

Chief Executive Officer Bob White is shaking up Olympus after taking over last year with the company in turmoil following the sudden exit of its previous leader. The US Food and Drug Administration warned health-care providers in June about importing certain medical devices manufactured in Japan by Olympus, including some endoscopes and machines used to wash them. 

White has said he plans to cut about 2,000 jobs — or roughly 7% of the firm’s global workforce — and change its region-centric structure to improve productivity. Olympus is also reviewing its supply chain as it aims to cut costs. 

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