Interim report
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DISCLAIMER : This document has been translated from a part of the Japanese original for reference purposes only . In the event of any discrepancy between this translated document and the Japanese original , the original shall prevail . Consolidated Financial Results for the Three Months Ended June 30 , 2026 ( Under Japanese GAAP ) Company name : Listing : Sharp Corporation Securities code : 6753 URL : Representative : Inquiries : Tokyo Stock Exchange https://corporate.jp.sharp/ ( English : https://global.sharp/ ) Tetsuji Kawamura , President Chief Executive Officer Shigetaka Obata , Senior Vice President , Finance and Administration Office Telephone : + 81-6-6271-1912 Scheduled date to commence dividend payments : Preparation of supplementary material on financial results : FASF August 7 , 2026 Yes Holding of financial results briefing : Yes ( for institutional investors and analysts ) ( Yen amounts are rounded down to millions , unless otherwise noted . ) 1 . Consolidated financial results for the three months ended June 30 , 2026 ( from April 1 , 2026 to June 30 , 2026 ) ( 1 ) Consolidated operating results ( Percentages indicate year - on - year changes . ) Net sales Profit attributable to owners of Operating profit Ordinary profit parent Three months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % June 30 , 2026 435,204 ( 7.9 ) 8,210 ( 46.3 ) 6,598 ( 64.5 ) 3,115 ( 88.6 ) June 30 , 2025 472,490 ( 11.2 ) 15,302 18,594 27,239 Note : Comprehensive income For the three months ended June 30 , 2026 : For the three months ended June 30 , 2025 : ¥ 13,077 million ¥ 20,070 million [ ( 34.8 ) % ] [ ( 17.7 ) % ] Basic earnings per share Three months ended Yen June 30 , 2026 Diluted earnings per share Yen June 30 , 2025 4.80 41.95 Note : Diluted earnings per share is not stated because potentially dilutive shares exist without dilutive effect at the moment . ( 2 ) Consolidated financial position As of June 30 , 2026 March 31 , 2026 Reference : Equity As of June 30 , 2026 : As of March 31 , 2026 : 2 . Cash dividends Total assets Net assets Equity - to - asset ratio Millions of yen Millions of yen % 1,451,748 308,241 20.2 19.6 1,428,253 295,284 ¥ 292,694 million ¥ 279,944 million First quarter - end Second quarter - end Annual dividends per share Third quarter - end Fiscal year - end Total Yen Yen Yen Yen Yen 0.00 0.00 0.00 Fiscal year ended March 31 , 2026 Fiscal year ending March 31 , 2027 Fiscal year ending March 31 , 2027 ( Forecast ) Note : 1. Revisions to the forecast of cash dividends most recently announced : None 2. As of this time , the dividend per share for the fiscal year ending March 31 , 2027 has not yet been determined . - 1 -
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- 2 - 3. Forecast of consolidated financial results for the fiscal year ending March 31, 2027 (from April 1, 2026 to March 31, 2027) (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Basic earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Fiscal year ending March 31, 2027 1,770,000 (6.5) 30,000 (38.2) 22,000 (62.0) 25,000 (47.3) 38.50 Note: Revisions to the earnings forecasts most recently announced: Yes *Notes (1) Significant changes in the scope of consolidation during the period: Yes Excluded: 2 companies (Sharp Sensing Technology Corporation, Sharp Display Solutions, Ltd.) (2) Adoption of accounting treatment specif ic to the preparation of quarterly consolidated financial statements: None (3) Changes in accounting policies, change s in accounting estimates, and restatement (i) Changes in accounting policies due to revisions to accounting standards and other regulations: None (ii) Changes in accounting policie s due to other reasons: None (iii) Changes in accounting estimates: None (iv) Restatement: None (4) Number of issued shares (common shares) (i) Total number of issued shares at the end of the period (including treasury shares) As of June 30, 2026 650,414,638 shares As of March 31, 2026 650,414,638 shares (ii) Number of treasury shares at the end of the period As of June 30, 2026 1,108,150 shares As of March 31, 2026 1,107,975 shares (iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Three months ended June 30, 2026 649,306,591 shares Three months ended June 30, 2025 649,299,598 shares * Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public acc ountants or an audit firm: None * Proper use of earnings foreca sts, and other special matters 1. The forward-looking statements, including forecasts of financial results, contained in these materials are based on informat ion currently available to the Sharp Corporation (“the Company”) and on certain assumptions deemed to be reasonable. However, the Company makes no guarantee that these forecast s will be achieved. Actual results may vary due to a variety of factors. 2. The Company is scheduled to hold a financial results briefing on Friday, August 7, 2026. The financial results briefing mate rials used in this briefing will be posted on the Company's website promptly after the announcement.
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- 3 - 1. Qualitative Information Qualitative Information regarding Consolidated Financial Results for the First Quarter Ended June 30, 2026 Please refer to the presentation material “Consolidated Financial Results for the First Quarter Ended June 30, 2026” on our company website. https://global.sharp/corporate/ir/library/financial/
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- 4 - 2. Consolidated Financial Statements (1) Consolidated Balance Sheets (Millions of yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and deposits 238,451 250,348 Notes and accounts receivable - trade, and contract assets 368,821 343,918 Inventories 250,385 289,188 Other 97,451 89,542 Allowance for doubtful accounts (5,717) (5,712) Total current assets 949,392 967,285 Non-current assets Property, plant and equipment Buildings and structures 459,451 460,546 Machinery, equipment and vehicles 693,932 681,727 Tools, furniture and fixtures 117,757 116,476 Other 118,968 120,326 Accumulated depreciation (1,206,847) (1,195,991) Total property, plant and equipment 183,263 183,084 Intangible assets Goodwill 9,145 8,666 Other 29,025 28,733 Total intangible assets 38,170 37,400 Investments and other assets Investment securities 195,750 200,185 Other 61,676 63,792 Total investments and other assets 257,427 263,978 Total non-current assets 478,860 484,463 Total assets 1,428,253 1,451,748
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- 5 - (Millions of yen) As of March 31, 2026 As of June 30, 2026 Liabilities Current liabilities Notes and accounts payable - trade 267,626 267,774 Electronically recorded obligations - operating 6,079 3,806 Short-term borrowings 432,284 81,623 Provision for bonuses 20,466 11,294 Provision for product warranties 19,885 19,798 Other provisions 31,704 31,202 Other 267,345 254,748 Total current liabilities 1,045,391 670,247 Non-current liabilities Long-term borrowings 562 386,918 Provisions 10,582 9,848 Retirement benefit liability 8,332 8,340 Other 68,099 68,151 Total non-current liabilities 87,576 473,259 Total liabilities 1,132,968 1,143,507 Net assets Shareholders' equity Share capital 5,005 5,005 Capital surplus 146,733 146,732 Retained earnings (6,648) (3,533) Treasury shares (13,390) (13,390) Total shareholders' equity 131,699 134,814 Accumulated other comprehensive income Valuation difference on available-for-sale securities 23,746 25,046 Deferred gains or losses on hedges 1,960 1,673 Foreign currency translation adjustment 87,684 97,229 Remeasurements of defined benefit plans 34,853 33,930 Total accumulated other comprehensive income 148,245 157,880 Share acquisition rights 1,905 2,067 Non-controlling interests 13,434 13,479 Total net assets 295,284 308,241 Total liabilities and net assets 1,428,253 1,451,748
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- 6 - (2) Consolidated Statements of Income / Consolidated Statements of Comprehensive Income - Consolidated statements of income (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Net sales 472,490 435,204 Cost of sales 368,127 334,380 Gross profit 104,363 100,823 Selling, general and administrative expenses 89,060 92,613 Operating profit 15,302 8,210 Non-operating income Interest income 1,230 1,466 Dividend income 372 564 Foreign exchange gains 1,223 35 Share of profit of entities accounted for using equity method 2,137 2,119 Investment income - 48 Other 2,938 1,717 Total non-operating income 7,901 5,952 Non-operating expenses Interest expenses 2,011 2,927 Investment expense 241 - Commission for syndicated loans - 2,250 Other 2,356 2,387 Total non-operating expenses 4,609 7,565 Ordinary profit 18,594 6,598 Extraordinary income Gain on sale of non-current assets 11,639 282 Gain on sale of investment securities 17 - Gain on sale of businesses 868 - Gain on reversal of share acquisition rights 15 9 Total extraordinary income 12,540 292 Extraordinary losses Loss on sale and retirement of non-current assets 330 64 Impairment losses 500 - Loss on sale of shares of subsidiaries and associates - 893 Business restructuring expenses - 501 Total extraordinary losses 831 1,459 Profit before income taxes 30,304 5,430 Income taxes - current 2,036 1,970 Income taxes - deferred 519 254 Total income taxes 2,556 2,225 Profit 27,747 3,205 Profit attributable to non-controlling interests 508 90 Profit attributable to owners of parent 27,239 3,115
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- 7 - - Consolidated statements of comprehensive income (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Profit 27,747 3,205 Other comprehensive income Valuation difference on available-for-sale securities 176 1,297 Deferred gains or losses on hedges 306 (286) Foreign currency translation adjustment (6,722) 5,594 Remeasurements of defined benefit plans, net of tax 10 (930) Share of other comprehensive income of entities accounted for using equity method (1,448) 4,197 Total other comprehensive income (7,677) 9,872 Comprehensive income 20,070 13,077 Comprehensive income attributable to Comprehensive income attributable to owners of parent 19,667 12,750 Comprehensive income attributable to non-controlling interests 402 327
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- 8 - (3) Consolidated Statements of Cash Flows (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Cash flows from operating activities Profit before income taxes 30,304 5,430 Depreciation 9,490 9,230 Interest and dividend income (1,603) (2,031) Interest expenses 2,011 2,927 Commission for syndicated loans - 2,250 Share of loss (profit) of entities accounted for using equity method (2,137) (2,119) Investment expenses (income) 241 (48) Loss (gain) on sale and retirement of non-current assets (11,308) (217) Impairment losses 500 - Loss (gain) on sale of investment securities (17) - Loss (gain) on sale of shares of subsidiaries and associates - 893 Loss (gain) on sale of businesses (868) - Gain on reversal of share acquisition rights (15) (9) Business restructuring expenses - 501 Decrease (increase) in accounts receivable - trade, and contract assets 14,114 27,386 Decrease (increase) in accounts receivable - other (432) 4,840 Decrease (increase) in inventories (20,444) (36,644) Increase (decrease) in trade payables 6,379 (5,493) Increase (decrease) in accrued consumption taxes (10,382) (1,062) Increase (decrease) in provision for bonuses (7,955) (9,213) Other, net (41,305) (11,637) Subtotal (33,428) (15,016) Interest and dividends received 2,435 2,915 Interest paid (2,525) (4,010) Income taxes refund (paid) (3,289) (1,712) Payments for business restructuring (6,328) (1,700) Proceeds from compensation 431 - Net cash provided by (used in) operating activities (42,705) (19,524)
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- 9 - (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Cash flows from investing activities Payments into time deposits (4,250) (1,503) Proceeds from withdrawal of time deposits 31,480 2,950 Purchase of property, plant and equipment (4,522) (4,944) Proceeds from sale of property, plant and equipment 11,225 392 Purchase of intangible assets (3,102) (3,027) Proceeds from sale of investment securities 25 - Proceeds from refund of investment partnerships 1,732 2,133 Other, net (337) 910 Net cash provided by (used in) investing activities 32,251 (3,087) Cash flows from financing activities Net increase (decrease) in short-term borrowings 6,416 (33,196) Proceeds from long-term borrowings - 389,149 Repayments of long-term borrowings (32,374) (323,110) Repayments of finance lease liabilities (867) (1,687) Other, net (359) (67) Net cash provided by (used in) financing activities (27,185) 31,088 Effect of exchange rate change on cash and cash equivalents (4,229) 4,863 Net increase (decrease) in cash and cash equivalents (41,867) 13,339 Cash and cash equivalents at beginning of period 242,703 230,500 Cash and cash equivalents at end of period 200,836 243,840
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- 10 - (4) Notes to Consolidate Financial Statements (Segment information) Ⅰ. Three months Ended June 30, 2025 ⅰ. Information on the amounts of sales, profits or losses for each reportable segment (Millions of yen) Reportable segments Other (Note) 1 Total Adjustments (Note) 2 Amounts recorded in consolidated statement of income (Note)3 Smart Life Smart Workplace Display Device Total Sales Revenues from external customers 140,244 188,883 108,406 437,534 34,955 472,490 - 472,490 Transactions with other segments 155 471 863 1,490 3,089 4,580 (4,580) - Total 140,399 189,355 109,270 439,025 38,045 477,070 (4,580) 472,490 Segment profit (loss) 6,875 14,214 (2,522) 18,566 1,336 19,903 (4,600) 15,302 Note: 1. Business segments excluded from reportable segments are classified as “Other”, consisting of the Electronic Device business and Sakai Display Products Corporation. 2. Adjustments for segment profits or losses of (4,600) million yen include (4,568) million yen in company-wide expenses that h ave not been allocated to each reportable segment. Company-wide expenses are mainly related to basic R&D expenses and expenses related to the Company's head office. 3. Segment profits or losses are adjusted for operating profits in consolidated statements of income. ⅱ. Information on segment assets In the first quarter, the Group transferred its equity in Saigon STEC CO., LTD., a consolidated subsidiary, and excluded it from the scope of consolidation. As a result, assets included in "Other" (formerly included in Electronic Device) as of March 31, 2025 decreased by 9,228 million yen. Ⅱ. Three months Ended June 30, 2026 ⅰ. Information on the amounts of sales, profits or losses for each reportable segment (Millions of yen) Smart Life Smart Workplace Display Device Total Adjustments (Note) 2 Amounts recorded in consolidated statement of income (Note)3 Sales Revenues from external customers 143,962 200,667 90,574 435,204 - 435,204 Transactions with other se gments 97 178 743 1,019 (1,019) - Total 144,059 200,846 91,317 436,223 (1,019) 435,204 Segment profit (loss) 3,742 10,711 (2,177) 12,275 (4,065) 8,210 Note: 1. The “Other” presented in the previous fiscal year notes has been discontinued from the current fiscal year following the transfer of Electronic Device business and the decision to cease operations of Sakai Display Products Corporation, both included in that category. 2. Adjustments for segment profits or losses of (4,065) million yen include (4,245) million yen in company-wide expenses that h ave not been allocated to each reportable segment. Company-wide expenses are mainly related to basic R&D expenses and expenses related to the Company's head office. 3. Segment profits or losses are adjusted for operating profits in consolidated statements of income. (Notes Related to Significant Changes in Shareholders’ Equity) No applicable matter to report. (Notes Related to the Going Concern Assumption) No applicable matter to report.