Olympus cut profit forecast, sparking 11% share drop due to sales slump, tariffs, recalls, and FDA scrutiny.

Olympus shares dropped as much as 11% in early Tokyo trading, their steepest decline since June 2025, after the company cut its full-year operating income forecast to ¥75–87 billion, well below the ¥132 billion consensus. The revision cited ongoing shipment suspensions in its surgical intervention business, weaker sales, higher costs, U.S. tariffs, and a voluntary product recall. Third-quarter operating profit fell 37% to ¥24 billion, missing expectations. The decline follows FDA scrutiny of certain Japanese-made devices and ongoing restructuring under CEO Bob White, who is cutting 2,000 jobs and shifting to a global efficiency model, including a new R&D hub in India.