Sanrio shares slumped sharply in Tokyo trading on August 12 after investors took profits when the company's fiscal 2026 first-quarter earnings, while record-high for the period, came in below market expectations. The stock at one point fell to ¥1,163, down 20% from the previous trading day and marking its biggest intraday decline since May 2014. First-quarter consolidated operating profit for April-June rose 11% from a year earlier to ¥22.4 billion, or about $140.6 million. Sanrio said growth continued across all global regions as character recognition expanded, helping deliver the highest quarterly operating profit on record. Even so, the result missed consensus forecasts: the QUICK Consensus average as of July 24, based on three analysts, was ¥23.2 billion, while the Bloomberg Terminal consensus was ¥23.4 billion. The reaction was amplified by comparison with the prior year's 88% operating profit growth, making the latest 11% increase look modest and reinforcing a view that earnings growth remains intact but is slowing.