---
title: "Canon Shares Fall 8% As Memory Costs Force Outlook Cut"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/284044542.md"
description: "Shares of Canon fell 8% in Tokyo, marking its steepest decline in a year, after the company cut its full-year outlook due to rising memory costs. Canon's operating income is now expected to be 456 billion, down 5% from prior guidance. The company reported a 26% drop in operating profit for the March quarter, despite increased sales. Canon plans to offset higher costs with price increases but may absorb some burden, indicating tightening margins. Analysts warn that the current pressure from rising DRAM and NAND prices could persist longer than expected."
datetime: "2026-04-24T18:32:40.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/284044542.md)
  - [en](https://longbridge.com/en/news/284044542.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/284044542.md)
generator: "portal-rs"
---

# Canon Shares Fall 8% As Memory Costs Force Outlook Cut

Shares of Canon (CAOEF) fell as much as 8% in Tokyo, marking their steepest decline in a year, after the company lowered its full-year outlook below estimates. The revision follows a sharp rise in memory costs, with Canon securing supply at a premium that adds 50 billion ($313 million) to annual expenses. Management now expects operating income of 456 billion, down 5% from prior guidance, while noting that impacts from the Middle East conflict beyond May have not yet been incorporated. The tone from the update suggests cost visibility remains uncertain, even as the company moves to secure critical components.

The pressure is already flowing through the income statement. Operating profit dropped 26% year-over-year to 71.4 billion in the March quarter, coming in weaker than expected and declining across printing, medical equipment, imaging, and industrial segments, despite an overall rise in sales. Canon indicated it plans to offset some of the higher costs through price increases, but also acknowledged it may need to absorb part of the burden, pointing to tightening margins in a still-competitive environment. At the same time, the company maintained expectations of strong demand from memory makers for its lithography equipment, creating a mixed demand backdrop.

What stands out for investors is how quickly memory dynamics are shifting. DRAM average selling prices climbed 60.8% quarter-over-quarter, while NAND rose 55.3%, as AI-driven demand continues to pull supply toward data centers. That shift is beginning to squeeze availability for consumer devices, particularly in smartphones and PCs, where lower-end products appear more exposed to cost inflation. Analysts noted that the impact assumptions for DRAM and NAND cost increases have deteriorated significantly from earlier expectations, suggesting the current pressure cycle could persist longer than previously anticipated.

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**