Epson Q3 Margins Squeezed by Tariffs

Epson Q3 Margins Squeezed by Tariffs

Epson reported nine-month results for fiscal 2025 ended December 31, with its Printing Solutions segment continuing to expand revenue while facing mounting pressure on profitability.

The printing segment posted revenue of ¥755.3 billion ($4.86 billion), up 3.2% year on year, remaining the group’s largest business by sales. Growth was driven mainly by commercial and industrial inkjet printers, where new product launches supported unit sales, particularly in signage applications. The consolidation of Fiery in December 2024 also contributed positively to both revenue and profit.

In contrast, performance in office and home printing was mixed. Unit sales of cartridge-based printers declined further, while high-capacity ink tank printers continued to gain traction in Western Europe and emerging markets across Asia and South America. On the consumables side, higher sales of ink bottles and shared-office ink were offset by a sharp fall in cartridge demand, resulting in a slight decline in overall ink revenue.

Segment profit in Printing Solutions fell 8.0% year on year to ¥89.0 billion ($0.57 billion). Epson cited higher U.S. tariff costs and an unfavorable consumables mix as key factors weighing on margins despite higher revenue.

At the group level, Epson recorded consolidated revenue of ¥1.04 trillion ($6.71 billion) for the first nine months, up 2.0% from a year earlier, while operating profit declined 7.1% to ¥58.4 billion ($0.38 billion). Weakness in the Visual Communications segment partly offset gains in printing and manufacturing-related businesses.

For the full fiscal year ending March 2026, Epson raised its revenue forecast, citing growth in printing and favorable foreign-exchange effects, but kept its business profit outlook unchanged, signaling continued caution over cost pressures and demand uncertainty.

Related:

• Epson Announces Expression Photo XP-980 Photo Printer
• Epson Reports Stronger 2025 Q2 Printing Solutions Performance
• Epson Launches EP-988A3 Six-Color A3 Ink Printer
• Epson Completes New Factory for Inkjet Printhead Production
• Epson Unveils New Series of EcoTank Printers

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