Canon Inc. Sees Success in Business Transformation, Chairman Predicts Three Years of Steady Growth
Canon Inc. has achieved a successful business transformation over approximately three years, with first-quarter net profit increasing by 171% year-on-year. The chairman predicts steady growth from 2026 to 2028, with a continued focus on revenue expansion and new product development.
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- 📰 Published: May 12, 2026 at 20:08
- 🔍 Collected: May 12, 2026 at 20:32 (23 min after Published)
- 🤖 AI Analyzed: May 13, 2026 at 07:08 (10h 36m after Collected)
TAIPEI, May 12 (CNA) - After approximately three years of transformation and adjustments, Canon Inc. has reported a significant operational turnaround. By focusing resources on key clients, the company achieved a 171% year-on-year increase in first-quarter net profit. Chairman Zhang Xia-qi stated that revenue in the second half of this year will be better than the first half, and anticipates steady growth from 2026 to 2028.
Canon held an investor conference today, reporting first-quarter revenue of NT$2.656 billion, an increase of 78% compared to the first quarter of 2025. Net profit attributable to the parent company was NT$236 million, a 171% increase from NT$87 million in the same period last year. Earnings per share (EPS) were NT$0.73, surpassing the previous year's NT$0.27. This marks the highest first-quarter profit since the first quarter of 2013 (R.O.C. calendar year 102), and the highest first-quarter EPS since the first quarter of 2011 (R.O.C. calendar year 100), a span of 16 years.
Cumulative consolidated revenue for the first four months reached NT$3.737 billion, a year-on-year increase of 73.2%. Canon expects both revenue and gross margin in the second quarter to be better than the first quarter. Chairman Zhang Xia-qi noted that after organizational adjustments and focusing resources on profitable clients over the past three years, the operational transformation has been successful, leading to strong performance.
Canon stated that some products developed between 2024 and 2025 are expected to enter production in the third and fourth quarters of 2026. Additionally, one to two new clients are expected to come on board in the second half of this year, ensuring that revenue in the latter half will surpass the first half. Revenue in 2027 is projected to be higher than in 2026, with a target of double-digit growth. Steady growth is anticipated from 2026 to 2028.
Canon also mentioned that new projects with a Japanese brand client and existing clients are progressing, with increased production and shipments for contract manufacturing. The addition of a large contract manufacturing client is expected, and projects with European and American clients are anticipated to increase from 2026 to 2028.
Regarding new products and projects, Canon is in detailed discussions for a smart sports glasses project, with fleet management system shipments scheduled to begin in the third quarter. Robotic arm assembly will commence in the second half of the year, while production of drone-related accessories will start in the second quarter. The company has also begun engaging with clients for precision medical projects.
Canon Inc.'s capital expenditures over the last three years have focused on several key areas: First, automation, including the introduction of robotic arms for assembly and testing to improve production efficiency, and automated material handling and cutting for SMT, aiming for a 30% reduction in labor costs. Second, upgrades to the Liaobu SMT facility. Third, investment in land, buildings, factory renovations, SMT, and production equipment in Vietnam. Fourth, renovation of the Liaobu factory and ESG-related energy-saving and carbon-reduction investments.
In terms of product mix, as of the current year, lightweight street photography cameras, sports cameras, panoramic cameras, and instant print cameras account for 80% of shipments. AI Hybrid imaging systems represent 10%, with modules and other products each making up 5%. The Dongguan factory accounts for 85% of the total production capacity, the Vietnam factory 15%, and the Taiwan factory 5%.
Looking ahead to 2026, Canon's research and development will focus on six directions: First, the development of new SOC platforms, including the use of NVIDIA platforms for ISP image correction in robots, platform docking, and smart city applications with digital twins. Second, the introduction of new structural materials, such as special leather and micro-conductive materials for artificial haptics. Third, the development of hybrid OIS and EIS stabilization algorithms. Fourth, the industrial camera market. Fifth, the development of gimbal product applications. Sixth, interchangeable-lens mirrorless cameras. (Editor: Huang Guo-lun) May 12, 2024
Canon held an investor conference today, reporting first-quarter revenue of NT$2.656 billion, an increase of 78% compared to the first quarter of 2025. Net profit attributable to the parent company was NT$236 million, a 171% increase from NT$87 million in the same period last year. Earnings per share (EPS) were NT$0.73, surpassing the previous year's NT$0.27. This marks the highest first-quarter profit since the first quarter of 2013 (R.O.C. calendar year 102), and the highest first-quarter EPS since the first quarter of 2011 (R.O.C. calendar year 100), a span of 16 years.
Cumulative consolidated revenue for the first four months reached NT$3.737 billion, a year-on-year increase of 73.2%. Canon expects both revenue and gross margin in the second quarter to be better than the first quarter. Chairman Zhang Xia-qi noted that after organizational adjustments and focusing resources on profitable clients over the past three years, the operational transformation has been successful, leading to strong performance.
Canon stated that some products developed between 2024 and 2025 are expected to enter production in the third and fourth quarters of 2026. Additionally, one to two new clients are expected to come on board in the second half of this year, ensuring that revenue in the latter half will surpass the first half. Revenue in 2027 is projected to be higher than in 2026, with a target of double-digit growth. Steady growth is anticipated from 2026 to 2028.
Canon also mentioned that new projects with a Japanese brand client and existing clients are progressing, with increased production and shipments for contract manufacturing. The addition of a large contract manufacturing client is expected, and projects with European and American clients are anticipated to increase from 2026 to 2028.
Regarding new products and projects, Canon is in detailed discussions for a smart sports glasses project, with fleet management system shipments scheduled to begin in the third quarter. Robotic arm assembly will commence in the second half of the year, while production of drone-related accessories will start in the second quarter. The company has also begun engaging with clients for precision medical projects.
Canon Inc.'s capital expenditures over the last three years have focused on several key areas: First, automation, including the introduction of robotic arms for assembly and testing to improve production efficiency, and automated material handling and cutting for SMT, aiming for a 30% reduction in labor costs. Second, upgrades to the Liaobu SMT facility. Third, investment in land, buildings, factory renovations, SMT, and production equipment in Vietnam. Fourth, renovation of the Liaobu factory and ESG-related energy-saving and carbon-reduction investments.
In terms of product mix, as of the current year, lightweight street photography cameras, sports cameras, panoramic cameras, and instant print cameras account for 80% of shipments. AI Hybrid imaging systems represent 10%, with modules and other products each making up 5%. The Dongguan factory accounts for 85% of the total production capacity, the Vietnam factory 15%, and the Taiwan factory 5%.
Looking ahead to 2026, Canon's research and development will focus on six directions: First, the development of new SOC platforms, including the use of NVIDIA platforms for ISP image correction in robots, platform docking, and smart city applications with digital twins. Second, the introduction of new structural materials, such as special leather and micro-conductive materials for artificial haptics. Third, the development of hybrid OIS and EIS stabilization algorithms. Fourth, the industrial camera market. Fifth, the development of gimbal product applications. Sixth, interchangeable-lens mirrorless cameras. (Editor: Huang Guo-lun) May 12, 2024
FAQ
Why has Canon Inc.'s performance grown rapidly?
Through a business transformation spanning approximately three years, the company focused resources on key customers and shifted towards higher-value products, significantly improving its performance.
What products will the company focus on developing in the future?
The company will focus on developing AI and IoT-driven products such as smart sports glasses, fleet management systems, robotic arms, AI Hybrid imaging systems, and industrial cameras.
What is Canon Inc.'s future growth outlook?
The chairman forecasts stable growth from 2026 to 2028, aiming for double-digit growth annually. Revenue in the second half of the year is expected to surpass the first half.