Olympus shares slump to 8-month low, down 11% after Japanese giant cuts income forecast

Olympus, the Japanese optics and camera giant, saw its shares plummet over 11% after the business lowered its operational income guidance for the entire year. In addition, its third-quarter results fell short of analyst expectations.

Olympus Corp. saw its biggest decline in almost eight months.

The largest intraday decrease since June 2025 occurred on Monday, when the stock fell as much as 11% in early Tokyo trading.

Considering progress through the third quarter and the effect of shipping suspensions in the surgical intervention business, the Japanese medical equipment manufacturer cut its projection to between ¥75 billion and ¥87 billion, Olympus said Friday. The prediction fell short of the ¥132 billion, a Bloomberg report said.

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In the meantime, operating earnings missed the forecast of ¥35 billion for the third quarter, falling 37% to ¥24 billion. The company stated that low sales, costs associated with layoffs, and a worsening cost-of-sales ratio in the face of increased US tariffs and voluntary product recalls were the main causes of the fall.

This comes at a time when the Chief Executive Officer, Bob White, is shaking up Olympus after taking over last year, with the company in turmoil following the sudden exit of its previous head.

In June, the US Food and Drug Administration issued a warning to healthcare providers regarding importing specific medical equipment made by Olympus in Japan, such as some endoscopes and cleaning equipment.

In order to increase efficiency, White has stated that he intends to alter the company's region-centric structure and eliminate nearly 2,000 positions, or about 7% of its global workforce. In an effort to reduce expenses, Olympus is also examining its supply chain.