Last Updated on 05/05/2025 by Nilofer Khan
Canon continues to grow as a billion-dollar business. The company has finally revealed its financial report for Q1 2025, and things are looking up for them. It also means that people are still keen on buying more mirrorless cameras, with the report highlighting a positive trend in the camera market. However, one major concern Canon revealed was US tariffs, which it believes will leave an impact on Canon’s sales. Here is a look at what the company foresees for the future.
Strong First-Quarter Results
First reported by Digital Camera Info and D.C. Life, the Canon report showcases positive sales for the imaging business. The report highlights that sales revenue in the imaging segment has grown by 20.8% year-over-year to 212.1 billion yen, which is also marked by a 15.5% increase in camera sales, now reaching 118.1 billion yen. The increase in the first quarter is the result of the EOS R5 Mark II, as well as strong demand for entry-level cameras. This further highlights a previous report, where the EOS R50 ended up getting a lot of traction from young users.
In addition, Canon is also focused on hybrid users, which is also helping them gain more users. The launch of the PowerShot V series and the EOS R50V with RF lenses is aimed at helping the company grow its profits further. In addition, they also want to increase the production of compact cameras and its sales, now that the demand is gradually shifting in the market.
Impact of Tariffs on Canon
Due to the tariffs, Canon disclosed that the impact of the policy is something that they can’t avoid. While there are ongoing negotiations and a pause for 90 days, the future remains uncertain. However, if Trump does not budget, Canon, which has over 1.2 trillion in sales in America, will face losses. In the report, the company has taken into consideration a 10% hypothetical tariff increase, which will result in reduced sales and declining demand.
One way Canon hopes to tackle this is by reviewing its production structure. In the Q&A segment, the company states they are “taking geopolitical risks into consideration,” and “consolidating” the production to “countries with lower risks.” At the same time, they aim to move higher-end products to automation in Japan. The company is also “considering outsourcing the production of lower-end models. Exchange rates and tariffs affect all companies equally, so we will compete fairly under the same conditions.” Automation will reduce cost and allow Canon to sell higher-end products at a lower price. However, we aren’t sure by when this will happen, and how they intend to outsource camera and lens making. This also hints at their partnership with Sigma and Tamron, which indicates that some of the production challenges could be tackled via partnerships.
Canon’s first-quarter financial results for 2025 show robust growth in its imaging camera business, with both high-end and entry-level models performing well. Sales revenue for the imaging segment increased by 20.8% year-over-year to 212.1 billion yen, driven by a 15.5% increase in camera sales to 118.1 billion yen. The company attributes this growth to the continued popularity of its high-end models like the “EOS R5 Mark II” and the rising demand for entry-level models among younger consumers transitioning from smartphones. Additionally, Canon plans to launch two new models in its “EOS/PowerShot V series” in the second quarter, targeting social media users and video creators to further expand its market reach.
Full-Year Outlook
Despite the challenges, Canon foresees a 5.6% increase in camera sales revenue for the remaining year and projects a profit of 612.6 billion. However, it remains to be seen what strategy the company uses, other than automation, to keep its sales crown up and right. Tariffs have already shaken up other markets, so it is not just Canon but also companies like Sony and Fujifilm that will bear the brunt, as well as the users. We will see the results of it all by Q2 of 2025.