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Toshiba Tec Reports Declines and Loss for Year, but Sharp Improvement in Fourth Quarter

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On May 11th, Toshiba Tec of Japan reported financial results for its fourth quarter and fiscal year, with both ended on March 31, 2026.

Although Toshiba Tec reported a loss for the year, and despite the impact of U.S. reciprocal tariffs, profitability improved quarter-by-quarter as Toshiba Tec’s tariff measures progressed, leading to a steady recovery.

Toshiba Tec also announced that it’s aiming to transition to a solutions-focused company, transitioning from a hardware-centric business model to a recurring solutions business.

Fiscal Year

Full-year net revenue was ¥569.26 billion ($3.62 billion), down 1.3 percent year-over-year (YoY); operating profit was ¥14.33 billion ($91.23 million), down 29.2 percent YoY; and net income was a loss of ¥2.28 billion ($14.51 million).

Although net revenue for the Retail Solutions business was up, this wasn’t enough to offset the cost of U.S. reciprocal tariffs of about ¥11.4 billion ($72.57 million). Toshiba Tec also recorded extraordinary losses related to the provision of allowance for economic compensation in connection with ETRIA Company’s decision to reduce the scale of Toshiba Tec Information Systems, which was formerly a subsidiary of Toshiba Tec, and is currently a subsidiary of ETRIA (ETRIA is Toshiba Tec’s joint venture with Ricoh and OKI Electonics). Toshiba Tec also reported an impairment loss of ¥3.27 billion ($20.82 million) related to investment securities.

The company reported that although sales of copier/MFPs for overseas markets decreased, mainly in the Americas due to the impact of U.S. tariffs and other factors, net sales increased, mainly due to higher sales of point-of-sale systems in Japan. 

Overall, net income decreased due to the recording of settlement income and the gain on sales of businesses in the previous fiscal year. Net income also decreased due to the recording of an allowance for doubtful accounts in the current fiscal year.

Full-year net revenue for the Workplace Solutions Business Group, which includes office MFPs, printers, etc., was down 4 percent YoY, and operating profit was down 46 percent YoY, due to a decrease in profit mainly in the Americas.

Fourth Quarter

Toshiba Tec said operating profit and ordinary profit for the fourth quarter improved significantly YoY, mainly due to the successful implementation of various reforms.

Fourth-quarter net revenue was ¥169.4 billion ($1.07 billion), up 10.65 YoY; operating profit was ¥10.2 billion ($64.93 million); up 30.0 percent YoY; and net income was ¥6.5 billion ($41.38 million), up 56.92 percent YoY.

Net revenue for the Workplace Solutions group was ¥227.8 billion ($1.45 billion), down  4.2 percent YoY, and operating profit was ¥6.7 billion ($42.65 million), down 4.53 percent YoY. On the bright side, while net revenue and operating profit were down YoY for the Workplace Solutions group, it was up significantly versus the preceding three quarters.

Forecast

For its fiscal year that will end on March 31, 2027, Toshiba Tec is forecasting net revenue of ¥590.0 billion ($3.75 billion), up 3.56 percent YoY; operating profit of ¥20.0 billion ($127.33 million), up 28.5 percent YoY;  and net income of ¥7.0 billion ($44.56 million), versus a loss of ¥2.3 billion ($14.64 million) for the previous year.

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