Olympus Drops After Full-Year Operating Income Forecast Cut

(Bloomberg) — Olympus Corp. fell the most in nearly eight months after the company cut its full-year operating income forecast and third-quarter earnings missed analyst estimates.

The stock fell as much as 11 percent in trading in Tokyo on Monday, its biggest intraday decline since June 2025.

Olympus said Friday that the Japanese medical device maker lowered its outlook to between ¥75 billion ($491 million) and ¥87 billion, taking into account progress through the third quarter and the impact of shipment halts on its surgical intervention business. The forecast missed Bloomberg’s consensus of ¥132 billion.

Meanwhile, operating profit in the third quarter fell 37% to ¥24 billion, below the forecast of ¥35 billion. The company said the decline was due to weak sales, expenses related to layoffs, and a worsening cost of sales ratio due to high U.S. tariffs and voluntary product recalls.

SMBC Nikko Securities Inc. “This was a negative surprise, although private factors appear to have played an important role,” Shinnosuke Tokumoto said in a note to clients.

Chief Executive Bob White is shaking up Olympus after taking over last year at the company, which was in turmoil following the sudden departure of its previous leader. The U.S. Food and Drug Administration in June warned healthcare providers about importing certain medical devices manufactured in Japan by Olympus, including some endoscopes and the machines used to wash them.

White said it plans to lay off about 2,000 people (or roughly 7% of the firm’s global workforce) and change its region-centric structure to increase productivity. Olympus is also reviewing its supply chain as it aims to reduce costs.

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