Canon posts strong imaging growth, steady printing results in first half of 2026

Canon Inc. reported solid financial results for the first half of 2026, with strength in its Imaging business helping offset slower performance in other segments. Consolidated revenue rose 3.5% year over year to ¥2.27 trillion, while operating profit increased 7.6% to ¥230.6 billion. Net income attributable to Canon climbed 9.8% to ¥171.2 billion.

For the photo and printing industries, the results show a company benefiting from continued demand for interchangeable-lens cameras and professional imaging products while maintaining stable performance across its broad printing portfolio.

The Printing Business, Canon’s largest segment, generated ¥1.24 trillion in revenue during the first six months of the year, up 1.5% from the same period in 2025. Operating profit increased 5.0% to ¥157.5 billion as gross profit improved 4.6%, reflecting lower manufacturing costs despite modest top-line growth. The segment accounted for approximately 54.5% of Canon’s total revenue.

Canon’s Printing segment includes office multifunction devices, laser printers, inkjet printers, image scanners, document solutions, large-format printers, and production inkjet systems. While selling and administrative expenses increased 5.2%, the company reduced capital expenditures in the segment by nearly 12%, suggesting a continued focus on profitability and efficient investment.

In the Production printing segment inside the commercial business, customers continued to postpone investment up to and including the first quarter, particularly in Europe and the United States. “Market conditions began to recover as printing companies resumed investment in digital printing equipment to improve productivity,” the company said. “As a result, sales of large continuous-feed and cut-sheet systems increased in the second quarter, and revenue returned to growth. In the second half of the year, as improving market conditions and growing contributions from new products accelerate our growth, we aim to achieve 7.3% revenue growth for the full year.”

The standout performer was Canon’s Imaging Business, where revenue jumped 16.9% to ¥552.7 billion. Operating profit surged 38.8% to ¥97.6 billion, making it the fastest-growing business within the company. Gross profit increased nearly 25% despite significantly higher investment in research and development, which rose 35% year over year.

According to the company financial report, the compact camera market continues to expand, driven by the growing number of new camera users, particularly among younger consumers. “As for the interchangeable-lens camera market, while we lowered our outlook to reflect the impact of the Middle East situation, we still expect the market to reach 6.45 million units. In the second quarter, compact camera sales increased significantly as we were able to meet strong demand through the production expansion implemented in the second half of last year. For interchangeable-lens cameras, sales of full-frame models increased significantly compared with the first quarter, led by the EOS R6 Mark III, which was launched in November last year. Combined with an increase in the average selling price, this resulted in revenue growth of 12.9% year on year. In the second half of the year, for compact cameras, which continue to perform strongly, we will further expand production capacity to eliminate supply shortages as quickly as possible and drive additional sales growth. For interchangeable-lens cameras, in addition to the EOS R6 Mark III, which contributed to sales growth in the first half of the year, we will strengthen sales of full-frame models, led by the EOS R6 V, a full-frame mirrorless camera for video creators launched in June. As a result, we aim to achieve full-year revenue growth of 11.6% for the camera business.”

The Imaging business represented 24.3% of Canon’s total sales during the first half, up from 21.5% a year earlier, underscoring its growing importance within the company’s portfolio.

Outside the imaging and printing businesses, Canon experienced mixed performance. The Medical segment saw revenue decline 0.7% while operating profit fell 29.2%. Industrial revenue dropped 9.1%, reflecting weaker demand for semiconductor and display manufacturing equipment, with operating profit down 33.1%.

Overall profitability improved as gross margin increased from 47.1% to 49.4%, while operating margin rose to 10.1% from 9.7%. The company also generated ¥205.4 billion in operating cash flow during the first half, compared with ¥158.9 billion a year earlier.

Canon also implemented an accounting change during the period, switching depreciation for manufacturing assets from the declining-balance method to straight-line depreciation. The change reduced depreciation expense by ¥12.6 billion during the first half and increased net income by ¥8.7 billion.

Despite the accounting change, the underlying business showed continued momentum, particularly in imaging. The company’s investments in research and development increased 8.3% overall, with a significant portion directed toward the Imaging segment, reflecting Canon’s ongoing emphasis on expanding its camera, lens, video, and imaging technology portfolio.

Looking ahead, Canon modestly revised its full-year guidance and now expects 2026 revenue of ¥4.8 trillion, representing 3.8% growth over 2025, with operating profit projected to reach ¥465 billion. The company maintained its planned annual dividend of ¥160 per share.