Summary
- Nikon has lowered its global interchangeable-lens camera market forecast to 6.7 million units.
- The company’s new target is 850,000 cameras and 1.25 million lenses.
- First-quarter sales fell to 210,000 cameras and 310,000 lenses.
- Lower demand in China and higher memory costs are pressuring the Imaging Products business.
- Nikon forecasts full-year revenue of 732 billion yen and operating profit of 11 billion yen.
Nikon has lowered its camera and lens sales forecasts for the fiscal year ending March 31, 2027, following a noticeable first-quarter slowdown and weaker demand, primarily in China.
The Japanese company reduced its estimate for the global digital interchangeable-lens camera market from seven million to 6.7 million units. At the same time, it lowered its own target from 900,000 to 850,000 cameras and from 1.3 million to 1.25 million lenses.
The development is significant because the Imaging Products Business accounted for approximately 44% of Nikon’s total first-quarter revenue. The division’s revenue fell by 8.8%, while operating profit declined by 27.5% compared with the same period in the previous fiscal year.
Camera and lens sales fall in the first quarter
During the first quarter of fiscal year 2027, Nikon sold approximately 210,000 digital interchangeable-lens cameras, compared with 270,000 units during the same period a year earlier. Interchangeable-lens sales also declined, from 370,000 to 310,000 units.
Revenue for the Imaging Products Business reached 72.9 billion yen, down from 80 billion yen a year earlier. Operating profit decreased from 11.1 billion to 8.1 billion yen, while the operating margin fell from 14% to 11.1%.
China and memory costs drive the pressure
Nikon attributes the decline in sales primarily to contracting demand in the Chinese market. Lower sales volumes affected both revenue and profitability in the imaging division.
Higher prices for memory products used in cameras created additional pressure. Positive foreign-exchange effects and refunds of United States tariffs were not sufficient to fully offset the impact of lower sales and increased costs.
At group level, Nikon recorded four billion yen in United States tariff refunds during the quarter. This benefit helped contain some of the pressure but did not reverse the negative trend in the Imaging Products Business.
New forecasts for fiscal year 2027
Nikon’s revised estimate places the global digital interchangeable-lens camera market at 6.7 million units, 300,000 units below its previous forecast.
The company now expects to sell 850,000 cameras instead of 900,000. The total interchangeable-lens market is still forecast at 10 million units, but Nikon has lowered its own target from 1.3 million to 1.25 million lenses.
Despite the short-term slowdown, Nikon expects the interchangeable-lens camera market to remain solid over the medium and long term.
Lower revenue and profit expectations for Imaging
Nikon lowered its full-year Imaging Products Business revenue forecast from 303 billion to 290 billion yen. Its operating profit forecast was reduced from 16 billion to 13 billion yen.
The changes mainly affect the first half, for which projected revenue was reduced by 13 billion yen and operating profit by three billion yen. The revision reflects the first-quarter results and the updated demand outlook.
Compared with the previous fiscal year, Nikon expects annual Imaging Products revenue to remain almost unchanged, while operating profit is forecast to decline by 4.2 billion yen, from 17.2 billion to 13 billion yen.
Nikon’s overall group performance
Nikon’s total first-quarter revenue rose by 3.8%, from 158.1 billion to 164.1 billion yen, supported by growth in other business segments and favorable foreign-exchange conditions. The group reported an operating loss of 0.9 billion yen, slightly smaller than the 1.1-billion-yen loss recorded in the same period a year earlier.
Profit attributable to owners of the parent reached 1.2 billion yen, compared with 9.4 billion yen a year earlier. The large difference was mainly linked to tax benefits recorded during the previous period.
For the full fiscal year, Nikon lowered its total revenue forecast from 740 billion to 732 billion yen. In contrast, it raised its operating profit forecast from 10 billion to 11 billion yen, while keeping its net-profit forecast unchanged at 10 billion yen.
Limited activity in new camera bodies
Nikon introduced the ZR on September 10, 2025, as a full-frame Z CINEMA camera aimed primarily at cinema and professional video production. At the time of the new financial results, the ZR remained the most recently introduced new camera body referenced in the related reporting.
During 2026, Nikon continued to expand the Z system with lenses including the NIKKOR Z 24-105mm f/4-7.1 and the NIKKOR Z 70-200mm f/2.8 VR S II.
What we think
The revision is a clear indication that Nikon is facing more difficult conditions than it expected at the start of the fiscal year, particularly in China. However, it does not indicate a collapse of the Imaging Products Business, which remains profitable and retained an operating margin of 11.1% in the first quarter.
The main issue is the combination of lower sales volumes and increased component costs, which is reducing profit margins even when foreign-exchange conditions are favorable. Developments in the Chinese market and sales performance during the second half will determine whether the revised targets can be achieved.
Frequently asked questions
How many cameras does Nikon expect to sell?
Nikon forecasts sales of approximately 850,000 digital interchangeable-lens cameras during the fiscal year ending March 31, 2027, down from its previous target of 900,000 units.
How large is the global market expected to be?
The revised forecast calls for total sales of 6.7 million interchangeable-lens cameras, 300,000 fewer units than in the previous estimate.
What changes in the lens forecast?
Nikon maintains its estimate of a 10-million-unit total interchangeable-lens market but has lowered its own target from 1.3 million to 1.25 million lenses.
Is Nikon’s imaging division still profitable?
Yes. The Imaging Products Business recorded an operating profit of 8.1 billion yen in the first quarter, although this was down from 11.1 billion yen a year earlier.
Why did sales and profits decline?
Nikon identifies contracting demand, primarily in China, lower sales volumes and higher memory prices as the main factors.
