SMC stock falls 2.87 percent after strong quarterly profit growth

Published on 10/07/2026 at 06:25 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

SMC stock reported JPY 270,987 million in fiscal Q1 revenue on August 7, 2026, up 35.4 percent year over year. Thirteen analysts rate it Buy.

SMC, JP3162600005, Illustration mit AI erstellt.

SMC Corporation stock was trading at JPY 73,820 on the Tokyo Stock Exchange on October 7, 2026, down 2.87 percent from the previous close. The latest quarterly figures show why the industrial automation specialist remains closely tied to semiconductor and factory investment trends.

Quarterly profit rises sharply

According to Smart Stock Notes on September 28, 2026, SMC generated revenue of JPY 270,987 million in fiscal Q1 2027, covering the period from April 1 through June 30, 2026. Revenue increased 35.4 percent from JPY 200,180 million in the prior-year quarter.

Operating profit climbed 66.4 percent to JPY 73,986 million, lifting the operating margin to 27.3 percent from 22.2 percent. Net income attributable to shareholders rose 95.9 percent to JPY 67,863 million, although the quarter also benefited from a JPY 6,013 million foreign-exchange gain and JPY 6,436 million in securities sale gains.

Full-year plan stays demanding

Smart Stock Notes reports that SMC kept its fiscal 2027 forecast at JPY 1,000,000 million of revenue and JPY 219,000 million of operating profit. The first quarter represented 27.1 percent of the annual revenue target and 33.8 percent of the operating profit target.

The comparison matters because the earnings growth was not driven by sales alone. Gross profit rose 43.2 percent, faster than revenue, while selling, general and administrative expenses increased 19.8 percent. That spread pushed operating profit growth well above the top-line increase.

The main operating risk is uneven regional demand. Semiconductor and data-center investment supported activity in Japan, North America and Asia, while European automotive demand remained weaker, according to the September 28 review by Smart Stock Notes.

Consensus target remains higher

The analyst consensus published by MarketScreener on September 10, 2026, is Buy from 13 analysts. The average target is JPY 88,153.85, which stands 19.42 percent above the October 7 trading price of JPY 73,820.

SMC also completed a JPY 50,000 million share repurchase program for 720,700 shares, equal to 1.14 percent of outstanding stock, according to MarketScreener on September 10, 2026. That capital-return measure supports the shareholder case, while the stock price still sits 14.95 percent below its 52-week high of JPY 86,800.

SMC stock trades below yearly high

SMC stock was last at JPY 73,820 on the Tokyo Stock Exchange on October 7, 2026 at 1:09 p.m. JST. Its 52-week range is JPY 49,850 to JPY 86,800, and its market capitalization is JPY 4.7 trillion.