ENVALITH
オムロン株式会社 logo

OMRON Corporation

6645Prime MarketElectric Appliances

オムロン株式会社 logo
OMRON Corporation6645

Business

Omron is an electrical and electronics equipment manufacturer founded in 1933, operating as a global group with 163 subsidiaries and 10 affiliated companies (as of the end of March 2026). Its core Industrial Automation Business (IAB) supplies control equipment to manufacturers worldwide, while its Healthcare Business (HCB) offers medical devices—centered on blood pressure monitors—in over 130 countries. The Social Systems Solutions & Service Business (SSB) handles social infrastructure such as energy storage systems and Station Service Systems, and the Data Solutions Business (DSB) provides preventive healthcare solutions leveraging JMDC's medical data platform. The company has decided to transfer its Device & Module Solutions Business (DMB) to the Carlyle Group, accelerating its focus on the device business centered on IA and the data services business.

Business Model

The main revenue source is product sales of control equipment, healthcare equipment, and social infrastructure equipment, with continuing operations revenue for FY2026 (ending March 2026) at ¥767,351 million. In addition, recurring maintenance revenue from SSB's M&S (Management & Services) and medical data utilization service revenue via DSB's JMDC Corporation are accumulating. Under the mid-term roadmap "SF 2nd Stage," cash generated from focus device businesses is being reinvested into five data service businesses, aiming for a data service revenue ratio of 15% by FY2030.

Company Strengths

IAB has built a "Customer Base Map" that visualizes 110,000 customers globally, expanding its customer base around a wide range of products including sensors and controllers. In FY2025, the company released 22 new product models, achieving year-on-year sales growth of 12.3% and operating profit growth of 18.0%. Its industry-leading product lineup forms a barrier to competitor entry.

HCB sells medical devices, centered on blood pressure monitors, in more than 130 countries worldwide, and its smartphone app "OMRON connect" has surpassed 15 million cumulative downloads across more than 130 countries and regions. The company has achieved technological differentiation, for example by globally rolling out next-generation blood pressure monitors equipped with the "Intellisense AFib" atrial fibrillation detection algorithm, which leverages over 50 years of accumulated pulse wave technology.

In October 2023, the company made JMDC a consolidated subsidiary, acquiring an anonymized medical data infrastructure sourced from health insurance associations and medical institutions. The DSB segment achieved high growth, with sales of ¥51,151 million in FY2026 (ending March 2026), up 19.7% year on year. By capturing demand for data utilization from pharmaceutical companies and insurers, and combining this data with Omron's device data, it serves as a differentiated foundation for preventive healthcare solutions.

ENVALITH's Perspective

FY2026 (ending March 2026) results showed net sales of ¥767,351 million (up 7.3% year on year) and operating profit of ¥59,935 million (up 12.1% year on year), marking two consecutive years of revenue and profit growth. However, ROE of 3.5% and ROIC of 3.0% (both based on profit attributable to owners of the parent) remain below the cost of capital. The company itself recognizes that "rebuilding the profitability and growth foundation is still halfway complete," and whether it can achieve the SF 2nd Stage targets of ROE of approximately 5.5% and ROIC of approximately 4.0% for FY2027 (ending March 2027) will be the key evaluation criterion going forward.

HCB's external customer sales for FY2026 (ending March 2026) were flat at ¥145,258 million (down 0.4% year on year), while operating profit fell sharply to ¥15,420 million (down 11.8% year on year). The main causes were the impact of US tariff policy and intensifying competition in major global blood pressure monitor price segments. As an external factor, depending on how US tariff policy develops, there is a risk of additional cost burdens, and continued attention is needed on the impact on performance should the slump in consumption in the Chinese market persist.

The execution date for the transfer of DMB (Device & Module Solutions Business) to the Carlyle Group is scheduled for October 1, 2026, and after the transfer is completed, management resources will be increasingly concentrated on the four continuing business segments. Meanwhile, the company plans to voluntarily adopt IFRS from the first quarter of FY2027 (ending March 2027), and investors should note that the change in accounting standards from US GAAP will reduce comparability with past results. The FY2027 (ending March 2027) earnings forecast (under IFRS) discloses net sales of ¥820,000 million and operating profit of ¥62,000 million, but the rate of change versus US GAAP figures has not been disclosed.

Growth Strategy

Accelerating growth in data x automation and transitioning to IFRS under SF 2nd Stage (FY2026-FY2030)

Commenced the new medium-term roadmap "SF 2nd Stage" covering FY2026 through FY2030. Under the policy of "Trusted Growth - Further deepening customer trust toward transformation into a GEMBA DX company," the company is steadily executing growth plans for its 13 focus businesses. FY2027 (ending March 2027) financial targets on an IFRS basis are net sales of ¥820,000 million, operating profit of ¥62,000 million, ROE of approximately 5.5%, ROIC of approximately 4.0%, and EPS of ¥229.

Resolved by the Board of Directors on March 30, 2026, with the share transfer scheduled to be executed on October 1, 2026. DMB has been classified as Discontinued Operations, enabling management resources to be concentrated on the four core businesses: IAB, HCB, SSB, and DSB. Aims to improve profitability and capital efficiency through portfolio optimization.

Capital expenditure demand in the generative AI, semiconductor, and secondary battery fields is expected to remain strong throughout the year, and the company will continue the planned development and release of new products tailored to customer needs in each area. The FY2027 (ending March 2027) target for IAB external customer net sales is ¥440,000 million (+7.5% year on year), with an operating profit target of ¥44,000 million (+2.8% year on year).

Continuing to expand the number of "Pep Up" issued IDs by JMDC and increase data utilization transactions with pharmaceutical companies and insurance companies. FY2026 (ended March 2026) DSB external customer net sales achieved high growth of ¥51,151 million (+19.7% year on year). The FY2027 (ending March 2027) target is further expansion to ¥62,000 million (+21.2% year on year). The company aims to transform into a company that achieves new growth through data services from 2030 onward.

Voluntarily adopting IFRS from the first quarter of the consolidated fiscal year ending March 2027 (FY2027). This aims to improve comparability with global investors and enhance recognition in capital markets. Earnings forecasts and financial targets for FY2027 (ending March 2027) have already been disclosed on an IFRS basis. A challenge remains in explaining to investors the numerical fluctuations arising from differences in accounting policies compared to U.S. GAAP.

Last updated: July 19, 2026