Olympus Corp. (TYO:7733) experienced a sharp drop in its share price on Monday after the medical equipment manufacturer reduced its profit outlook for the fiscal year ending March 31. Shares fell more than 13% to 1,603.5 yen - their lowest level since June 2025 - making Olympus the weakest performer on the Nikkei 225, which otherwise held roughly flat for the day.
Quarterly results and margin pressure
For the three months to December 31, Olympus reported an adjusted profit that declined by 9% compared with the prior period, even as revenue edged higher. The company said margins deteriorated during the quarter, attributing the weakness to elevated expenses. Sales weakness for its core gastrointestinal endoscope business in the U.S. was also cited as a factor in the quarterly performance.
Revised full-year outlook
In response to the recent trends, Olympus lowered its forecast for net profit attributable to shareholders for the fiscal year ending March 31, cutting the range to between 50 billion yen and 59 billion yen from its earlier projection of 94 billion yen. The company attributed the revision in part to softer sales in the United States and to voluntary suspension of certain U.S. shipments after the U.S. Food and Drug Administration conducted re-inspections at eight U.S. facilities in late-2025.
Olympus did not disclose additional details about the outcomes of the FDA reviews when announcing the guidance reduction.
Regulatory compliance and ongoing costs
Management noted continued expense pressure related to ongoing regulatory compliance work. Olympus is still incurring additional costs tied to its Elevate compliance program, which the firm launched in 2023 following several FDA alerts concerning patient safety of its devices. CEO Bob White said he expects a bulk of the outstanding issues to be resolved during the company’s fiscal fourth quarter.
Market reaction and context
The downward revision and the lingering compliance costs appear to be central drivers of investor concern, reflected in the steep share-price decline. While the Nikkei 225 showed little net movement on the day, Olympus stood out as a clear laggard following the announcement.
The company has not provided additional data on the FDA re-inspections' findings, and the timing and extent of cost reductions tied to compliance efforts remain tied to the resolution timeline management has outlined.