Wacom
Japanese maker of pen tablets and displays (Cintiq, Bamboo) for digital artists.
On the record
Checkpoint: Wacom AGM vote on AVI's push to remove two directors over the RE-X related-party deal
The call
Wacom still owns the professional pen-tablet niche, but shrinking revenue, cheaper Chinese rivals, and an activist investor fight are all pressing on it at once.
Wacom sells digital pen tablets and displays that artists and designers use to draw on computers. The company is hard to replace because many professionals rely on Wacom's pens and software, and some big computer makers license Wacom's technology built-in. But Apple's iPad with Apple Pencil does the same job for less money and works better for many people, while cheaper Chinese brands like XP-Pen and Huion are grabbing customers too. Wacom's revenue is shrinking, it is cutting workers, and there is a messy fight between the company's board and an activist investor over past business deals. The one thing that could help: if Wacom's new portable tablet called MovinkPad keeps selling well and proves this new product type works, it might show the company can compete again. If that fizzles, or if the board fight gets worse, Wacom will keep losing ground.
Why
01
AI pressure: None apparent. AI art generators could shrink the pool of professional illustrators who buy Cintiqs, but no AI product replaces the pen hardware itself. Could AI do the core job? Only partly.
02
Bigger players: Apple (iPad + Apple Pencil). iPad plus Apple Pencil already pulls casual and semi-pro artists away from Wacom tablets, and Chinese rivals XP-Pen and Huion undercut on price. Could a giant copy it? Yes, easily.
03
What protects it. OEM pen-digitizer licensing deals (including Samsung) and deep workflow lock-in with animation and film studios still running on Wacom hardware.
What would change this call
Wacom's FY2026 results (due ~May 2026) show revenue growth versus the -4.9% preliminary figure. Would show the two-year decline against Apple and Chinese rivals is reversing.
MovinkPad sales sustain profitability for two-plus quarters in Branded Products reporting. Would confirm the new standalone tablet line is a durable counter to rivals, not a one-off.
June 2026 AGM vote outcome on AVI's push to remove two Wacom directors. Would show whether governance overhead easing frees management to focus on competitive response.
MovinkPad sales sustain profitability for two-plus quarters in Branded Products reporting. Would confirm the new standalone tablet line is a durable counter to rivals, not a one-off.
June 2026 AGM vote outcome on AVI's push to remove two Wacom directors. Would show whether governance overhead easing frees management to focus on competitive response.
Key numbers
- FY2025 revenue ¥115.68B, down 2.6%
- Prelim FY2026 revenue ¥110B, down 4.9%
- Headcount cut 15-20% under restructuring plan
Named risks
- Unresolved activist governance fight with AVI over director removal since May 2026.
- Two consecutive years of revenue decline, FY2025 -2.6%, FY2026 prelim -4.9%.
- Chinese rivals XP-Pen and Huion eroding premium pricing power globally.
- Generative AI shrinking the working-artist customer base that buys Wacom hardware.
- Continued headcount cuts of 15-20% could strain execution of Chapter 4 turnaround.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| Apple (iPad and Apple Pencil) | contesting | CEO named iPad as rival to counter via ecosystem, not price, Dec 6 2025 |
| XP-Pen | gaining on | Reported number 2 global pen-display share, number 1 in France/Russia/India, Sep 2025 |
| Huion | gaining on | Cited with over 10 million users as of 2022, narrowing spec and price gap with Wacom |
| Samsung | contesting | Competes via Galaxy S Pen while also supplying OLED panel for Wacom Movink, Apr 2024 |
Questions people ask
- Is Wacom profitable in 2026?
- Wacom's FY2025 (ended March 2025) net income was ¥5.22 billion, up 14.5% YoY, but revenue fell 2.6% that year and preliminary FY2026 (ended March 2026) revenue dropped a further 4.9% to about ¥110 billion, showing profit alongside a shrinking top line.
- Could AI replace Wacom's business?
- AI does not replace Wacom's pen hardware directly, but generative art tools threaten the size of its core customer base of working artists. Wacom responded by investing in AI firm Preferred Networks in December 2024 for a 5-year joint research pact on pen and ink experiences.
- Who is Wacom's biggest competitor?
- Wacom's CEO explicitly named Apple's iPad and Pencil as the competitive force to counter, per the December 6, 2025 earnings call, while Chinese rival XP-Pen was reported in September 2025 as the number 2 global pen-display brand and number 1 in France, Russia and India.
- Who owns Wacom?
- Wacom is publicly traded on the Tokyo Stock Exchange Prime Market as 6727, with UK activist fund Asset Value Investors as top disclosed shareholder at roughly 13.8% as of April 2026, a stake held since October 2021 and now pushing to remove two directors.
- Is Wacom losing market share to Chinese rivals like XP-Pen and Huion?
- Yes, per a September 24, 2025 report XP-Pen has become the number 2 global pen-display brand, leading in France, Russia and India, while Wacom's overall revenue declined 2.6% in FY2025 and 4.9% in preliminary FY2026 figures.
- Is the MovinkPad line actually working for Wacom?
- Wacom's Branded Products segment returned to operating profit for the first time in four years, about ¥920 million, disclosed at the December 6, 2025 earnings call, with the new MovinkPad standalone tablets reported as repeatedly selling out.
Timeline
- 2026-05-14AVI publicly demands removal of two Wacom directors over governance concerns
- 2026-03-31Wacom completes ¥1.696B acquisition of RE-X Expansion from related-party firm
- 2026-01-30Wacom discloses notice of RE-X Expansion acquisition
- 2025-12-06FY2025 Q3 call: Branded Products returns to profit, CEO names iPad as rival
- 2025-09-30Wacom launches MovinkPad Pro 14 all-in-one creative tablet
- 2025-07-16Wacom launches MovinkPad 11 standalone Android creative pad
- 2025-05-08Wacom unveils Chapter 4 plan targeting ¥150B revenue by FY2029
- 2024-12-23Wacom acquires shares in AI firm Preferred Networks, starts 5-year pact
- 2024-04-24Wacom launches Movink, its first OLED pen display, with Samsung Display
- 2024-01-10Wacom faces backlash for AI-generated dragon art in New Year marketing
Revision history
23 July 2026
First assessed. Losing its protection. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- 6727) Revenue (2026-07-12)
- Wacom Unveils 'Wacom Chapter 4' Business Plan (2025-05-08)
- Wacom FY2025 Q3 Earnings Call (2026-04-30)
- 6727) Number of Employees (2026-07-10)
- Employee Count & Headcount Data (2026-06-29)
- Wacom Group Medium-Term Business Plan, 'Wacom Chapter 4' (2025-05-09)
- AVI urges the dismissal of two directors at Wacom (2026-05-14)
- Notice Regarding Acquisition of RE-X Expansion (2026-01-30)
- Introducing Wacom Movink (2024-04-24)
- Draw Instantly, Anywhere: Wacom MovinkPad 11
- Wacom's MovinkPad Pro 14 (2025-09-30)
- How the Chinese pen display brand became Wacom's main rival (2025-09-24)