Fujifilm Stock Crashes 18 Percent On Weak Earnings

Fujifilm shares crashed by a record margin on Friday after first quarter earnings missed analyst estimates by a wide margin. The stock fell as much as 18 percent, marking the steepest drop in the history of the company. Fujifilm posted an operating income of 51.2 billion yen for the quarter ending in June, which fell far below the average analyst estimate of 77.1 billion yen.

Higher raw material costs and one off expenses weighed heavily on the results. Underlying profit also weakened across the healthcare and business innovation divisions. Analysts noted that the poor numbers point to a long road back to profitability, making a quick recovery unlikely for the fiscal year ending in March 2028.

In response to the slump, Fujifilm is considering a partial spinoff of its business innovation unit, a segment that generates over a third of total sales. Under the proposal, Fujifilm would keep a stake just under 20 percent and distribute the rest to shareholders. The company aims to complete the plan within two to three years as part of a broader strategy to boost capital efficiency.