The PowerShot series of point-and-shoots – and EOS R series mirrorless – are selling so well that Canon just broke profit records. But, the latest report from the camera giant comes with both highs and lows, as the rising cost of memory remains a significant threat to the company’s bottom line.
Canon shared the first quarter of 2026 financial results on April 23, but the report also highlights key points for photographers – not just investors. Overall sales hit a record, increasing 3.3 percent from the same time period last year. Despite the record-breaking sales, profit was down by 26.1 percent due to higher memory costs, tariffs, and higher sales on budget products.
The cost of memory is a major concern for Canon
The same memory shortage that’s tripling memory card prices is also a major concern for the camera manufacturer. AI’s need for storage has risen prices across multiple types of digital storage – and yes, memory is essential to building cameras, not just memory cards.
Canon said that it has stockpiled nearly all the memory that it needs for the entire year. However, the company still expects the rising memory costs to negatively impact the company by $50.3 billion yen – that’s about $318 million / £235 million / AU$445.5 million / CA$435.6 million at current exchange rates.
Canon’s camera sales are booming
In the imaging division, net sales increased by 15.9 percent over the same time period last year – and around 13 percent of that was from camera sales. Canon says those numbers were led by strong sales in entry-level mirrorless cameras, as well as full-frame, like the new EOS R6 Mark III.
A significant number was also due to compact cameras – or rather, increasing production to meet the backorders of trendy options like the PowerShot G7 X Mark III, which is nearly impossible to find in stock at list price in some regions. Shipping out some of those backorders also led to an increase in camera sales.
Canon plans to expand point-and-shoot production and strengthen its mirrorless line
But, the report also has a bit of good news for fans trying to get their hands on a PowerShot camera. Canon will further increase production on compact cameras moving forward, according to the report. That’s not the first time (or the second) that the company has ramped up production in response to the compact camera trend. While Canon has previously increased production, another increase may help get more of those high-demand models into photographers’ hands.
In the company’s financial projects for the full 2026 year, Canon again alluded to the same focus highlighted in the last report: a focus on entry-level models. But, Canon didn’t leave out full-frame either. “...sales of cameras will be expanded by building on strong performance of entry level models among new camera users, particularly younger customers, while also strengthening the lineup of full-frame models,” the report reads.
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