Renishaw Q1 FY2026: Revenue Down on FX, Up on Constant Currency, Order Book Improving
Renishaw has kicked off FY2026 with a steady first quarter. Reported revenue came in at £170.8 million, down 1.8% year-on-year at actual exchange rates, but up 2.8% at constant exchange rates. In simple terms, currency moved against them, but underlying trading improved. The order book is building, new products have landed well, and a previously announced £20 million operating cost reduction has been implemented.
There is clear regional divergence: strong growth in the Americas and APAC, a weak EMEA, and a supportive product cycle in Industrial Metrology and Position Measurement. The company continues to avoid quarterly profit commentary, so margin implications will need to wait for the interim results.
Key Q1 numbers investors should know
| Metric | Q1 FY2026 | Q1 FY2025 | Change |
|---|---|---|---|
| Total revenue – actual exchange rates | £170.8m | £173.9m | -1.8% |
| Total revenue – constant exchange rates | £169.5m | £164.9m | +2.8% |
Note: 1.2% of the constant currency growth relates to surcharges to offset tariff duties in the Americas.
Segment performance shows underlying growth
| Segment | Revenue Q1 FY2026 | Revenue Q1 FY2025 | Growth – actual | Growth – constant |
|---|---|---|---|---|
| Industrial Metrology | £102.0m | £103.6m | -1.5% | +3.4% |
| Position Measurement | £52.1m | £53.2m | -2.1% | +2.2% |
| Specialised Technologies | £16.7m | £17.1m | -2.2% | +1.0% |
Industrial Metrology benefited from good demand for 5-axis co-ordinate measuring machines (CMMs) and shop-floor gauging systems, plus steady growth in machine calibration systems. The drag came from weaker metrology sensor sales to machine tool and CMM builders, particularly in EMEA.
Position Measurement saw solid momentum in open optical encoders and encouraging traction in enclosed encoders sold to machine tool builders. Laser encoders were lower against a strong prior-year comparison. The newly launched ASTRiA inductive encoder is in early business development with key prospects, including defence applications.
Specialised Technologies edged up at constant currency. Metal additive manufacturing system sales improved versus recent quarters but were slightly below a strong prior-year Q1. Spectroscopy revenue was lower year-on-year, though the order book strengthened.
Regional split: Americas and APAC strong, EMEA the outlier
| Region | Revenue Q1 FY2026 | Revenue Q1 FY2025 | Growth – actual | Growth – constant |
|---|---|---|---|---|
| Americas | £43.8m | £41.5m | +5.7% | +11.2% |
| APAC | £84.4m | £79.1m | +6.6% | +14.7% |
| EMEA | £42.6m | £53.3m | -20.1% | -20.5% |
Americas growth benefited from surcharges introduced to offset additional tariff costs, but underlying demand also improved for CMM systems, AM systems, and Position Measurement products. APAC saw continued strength in Position Measurement for semiconductor equipment and higher demand for Industrial Metrology from consumer electronics. EMEA was weak, with soft demand for Industrial Metrology sensors from machine tool builders and lower laser encoder sales for wafer inspection. Some EMEA sales were delayed by a planned ERP system implementation in September, with recovery expected in Q2.
New products and why they matter for the cycle
Renishaw launched several metrology products at EMO in September. The Equator-X dual method shopfloor gauge and MODUS IM Equator software received a positive reception, with capacity being scaled in pre-production to meet early interest. Also launched were the XK20 alignment laser system for machine tools, CMMs and precision stages, and the NC4+ Blue high-accuracy laser tool setting system.
In plain English: these tools help factories measure and calibrate machines more accurately on the shop floor, which boosts yield and quality. Strong product refreshes often precede order book improvements, which is consistent with the company’s commentary on growing orders in Industrial Metrology and Position Measurement.
Cost reduction, focus and the margin set-up
The previously announced operating cost reduction programme targeting £20 million in annualised payroll savings has been completed in Q1. Group headcount at the end of September is 350 lower than at the end of FY2025, a reduction of 6.5%. Renishaw also continues productivity initiatives to enhance efficiency and improve returns in line with medium-term targets.
Separately, the company is progressing the closure of the drug delivery aspect of its non-core neurological business, to conclude in Q2 FY2026. That tidies the portfolio and should simplify the narrative around core industrial technologies.
Profit and margin details are not disclosed in this update. The cost actions create a tailwind, but we will need the interim results to see the net effect after mix, currency and pricing.
Understanding the constant currency angle
Renishaw uses constant exchange rates to strip out currency moves and forward contract gains and losses. Put simply, revenue is recalculated at last year’s exchange rates to show underlying trading. For Q1, that measure indicates 2.8% growth, with 1.2% of this growth relating to surcharges to offset tariff duties in the Americas.
My take: steady, selective strength, and clear watch-outs
- Positives: Order book strengthening, healthy growth in the Americas and APAC, an encouraging slate of new metrology products, and £20 million of annualised cost savings implemented.
- Negatives: EMEA is a clear weak spot, softness in sensors to machine tool and CMM builders, and laser encoder sales facing tough comps. Surcharge-led growth is helpful but may not be a permanent lever.
What to watch next: whether EMEA rebounds in Q2 once ERP-related delays unwind, how quickly new products convert to revenue in Industrial Metrology and Position Measurement, and the durability of demand from semiconductors and consumer electronics in APAC. Also, whether tariff-related surcharges in the Americas remain in place and how much of growth is price versus volume.
Overall, this reads as a workmanlike start to the year in mixed conditions. The company expects steady revenue growth for FY2026, which feels reasonable given the order book trend and product cycle, though macro uncertainty and regional divergence remain live issues. With costs reset and focus sharpened, the interim results will be the moment to assess margin momentum.
