Worth reading
73In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Mixed performance
Direction inferred from the company’s description.Scale
22
Year-on-year change in operating profit (decline rate, %)Wording
Conditional
How definitive the wording is.Contents of this document
Earnings presentationFirst quarter of the fiscal year ending March 202716 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥313,148 million+7.8%
Operating profit¥7,701 million-22.0%
Ordinary income¥7,873 million-22.1%
Net income¥5,795 million-19.5%
Selling, general and administrative expenses¥12,980 million
Gross Profit Margin
Rate6.6%
Year-on-year change (points)Down 1.0 percentage point (7.6% → 6.6%)
Operating profit margin
Rate2.5%
Year-on-year change (points)Down 0.9 percentage point (3.4% → 2.5%)
Results for the three months of the current quarterRevenue of ¥313,148 million, operating profit of ¥7,701 million, ordinary profit of ¥7,873 million, and net income attributable to owners of the parent of ¥5,795 million (first quarter of the fiscal year ending March 2027)
Full-year earnings forecast
Net Sales
¥1,189,000 million
Operating profit
¥36,500 million
Ordinary income
¥36,700 million
Profit attributable to owners of the parent
¥25,300 million
Earnings per share
¥291.09
Progress against full-year forecast 通期の予想に対して、いまどこまで進んだかの割合です。Revenue 26.3% and operating profit 21.1%. First-half progress was 55.2% for revenue, 46.7% for operating profit, 47.4% for ordinary profit, and 50.8% for interim net income.
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Revenue grew beyond plan. Operating profit is progressing in line with plan.Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Expected profit increase from higher revenue+¥1.71 billion
Impact of gross profit margin-¥3.13 billion
Base-pay increases, salaries and bonuses-¥200 million
Employee benefits-¥100 million
Other personnel expenses-¥90 million
Advertising expenses-¥250 million
Depreciation and amortization-¥200 million
Logistics Costs-¥190 million
Expansion costs, etc.+¥210 million
Other SG&A expenses+¥70 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
PC prices rose 20%–30% in April and are expected to continue rising from October onward. The outlook for server prices and supply remains uncertain.New initiatives
Beginning formulation of the next medium-term management plan, stabilizing product supply and profitability through strategic procurement, developing new functions and increasing service personnel in the machine tools business, rebranding activities, and the planned repurchase and cancellation of treasury sharesKey KPIsA metric the company considers important as a management benchmark.
- PC shipments109.3 10,000 unitsYear on year against the same period last year-9.0%
- Server shipments8.52 thousand unitsYear on year against the same period last year-32.2%
- iKAZUCHI (雷) transaction volume¥17,913 millionYear on year against the same period last year+35.2%
- AI revenue (total SaaS)175 % year on yearYear on year against the same period last year+175.0%
- Machine tool orders¥3,610 millionYear on year against the same period last year+42.2%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
PC shipments were 1.093 million units (down 9.0% year on year), and server shipments were 8.52 thousand units (down 32.2%). A complete price-volume breakdown is not disclosed.Segment results
IT Infrastructure Distribution
Net Sales
¥310,098 million+8.1%
Operating profit
¥7,461 million-21.4%
Industrial Machinery
Net Sales
¥3,050 million-21.1%
Operating profit
¥236 million-37.7%
Medium-term management plan targets
The Company has begun formulating the next medium-term management plan to realize its medium- to long-term strategy, “2030 VISION.” Numerical targets are not disclosed.Financial targets
Equity ratio of 35.6% (at the end of June 2026). Targets for ROE, ROIC and the D/E ratio are not disclosed.Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
Not disclosed. Concerns including higher logistics and transportation costs associated with the situation in the Middle East, rising costs, supply chain disruptions and reductions in IT investment budgets have been excluded from the earnings forecast.Market Size / Share
36.2% share of the domestic corporate PC market and 28.6% share of the overall domestic PC market (fiscal year ended March 2026). No. 1 domestic share in vertical lathes.Orders received and order backlog
Machine tool orders were ¥3,610 million (up 42.2% year on year). The order backlog is not disclosed.Number of stores and locations
112 locations nationwide. The number of store openings and closures during the period is not disclosed.Annual Dividend
Forecast annual dividend for the fiscal year ending March 2027: ¥110 per share (¥55 interim, ¥55 year-end)Payout ratio
Dividend payout ratio of at least 30%. Forecast payout ratio for the fiscal year ending March 2027 is 37.8%, and total payout ratio is 61.6%.Acquisition of treasury shares
Up to ¥6 billion, with the shares scheduled to be cancelled after repurchase. The repurchase period is not disclosed.| Item | Details |
|---|---|
| Document type | Earnings presentation |
| Fiscal Period Covered | First quarter of the fiscal year ending March 2027 |
| Net Sales | ¥313,148 million (YoY +7.8%) |
| Operating profit | ¥7,701 million (YoY -22.0%) |
| Ordinary income | ¥7,873 million (YoY -22.1%) |
| Net income | ¥5,795 million (YoY -19.5%) |
| Gross Profit Margin | Rate 6.6% / Year-on-year change (points) Down 1.0 percentage point (7.6% → 6.6%) |
| Operating profit margin | Rate 2.5% / Year-on-year change (points) Down 0.9 percentage point (3.4% → 2.5%) |
| Selling, general and administrative expenses | ¥12,980 million |
| Results for the three months of the current quarter | Revenue of ¥313,148 million, operating profit of ¥7,701 million, ordinary profit of ¥7,873 million, and net income attributable to owners of the parent of ¥5,795 million (first quarter of the fiscal year ending March 2027) |
| Full-year earnings forecast | Net Sales ¥1,189,000 million / Operating profit ¥36,500 million / Ordinary income ¥36,700 million / Profit attributable to owners of the parent ¥25,300 million / Earnings per share ¥291.09 |
| Progress against full-year forecast | Revenue 26.3% and operating profit 21.1%. First-half progress was 55.2% for revenue, 46.7% for operating profit, 47.4% for ordinary profit, and 50.8% for interim net income. |
| Self-assessment against the plan | Revenue grew beyond plan. Operating profit is progressing in line with plan. |
| Segment results | IT Infrastructure Distribution Net Sales ¥310,098 million (YoY +8.1%) / Operating profit ¥7,461 million (YoY -21.4%) / Industrial Machinery Net Sales ¥3,050 million (YoY -21.1%) / Operating profit ¥236 million (YoY -37.7%) |
| Breakdown of Factors Affecting the Change | Expected profit increase from higher revenue +¥1.71 billion / Impact of gross profit margin -¥3.13 billion / Base-pay increases, salaries and bonuses -¥200 million / Employee benefits -¥100 million / Other personnel expenses -¥90 million / Advertising expenses -¥250 million / Depreciation and amortization -¥200 million / Logistics Costs -¥190 million / Expansion costs, etc. +¥210 million / Other SG&A expenses +¥70 million |
| Key KPIs | Indicator name PC shipments / Value 109.3 10,000 units / Year on year against the same period last year -9 10,000 units, Indicator name Server shipments / Value 8.52 thousand units / Year on year against the same period last year -32.2 thousand units, Indicator name iKAZUCHI (雷) transaction volume / Value ¥17,913 million / Year on year against the same period last year ¥35.2 million, Indicator name AI revenue (total SaaS) / Value 175 % year on year / Year on year against the same period last year 175 % year on year, Indicator name Machine tool orders / Value ¥3,610 million / Year on year against the same period last year ¥42.2 million |
| Unit price and quantity metrics | PC shipments were 1.093 million units (down 9.0% year on year), and server shipments were 8.52 thousand units (down 32.2%). A complete price-volume breakdown is not disclosed. |
| Number of stores and locations | 112 locations nationwide. The number of store openings and closures during the period is not disclosed. |
| Assumptions Underlying the Business Outlook | PC prices rose 20%–30% in April and are expected to continue rising from October onward. The outlook for server prices and supply remains uncertain. |
| Risk amount incorporated into the outlook | Not disclosed. Concerns including higher logistics and transportation costs associated with the situation in the Middle East, rising costs, supply chain disruptions and reductions in IT investment budgets have been excluded from the earnings forecast. |
| Medium-term management plan targets | The Company has begun formulating the next medium-term management plan to realize its medium- to long-term strategy, “2030 VISION.” Numerical targets are not disclosed. |
| Financial targets | Equity ratio of 35.6% (at the end of June 2026). Targets for ROE, ROIC and the D/E ratio are not disclosed. |
| Annual Dividend | Forecast annual dividend for the fiscal year ending March 2027: ¥110 per share (¥55 interim, ¥55 year-end) |
| Payout ratio | Dividend payout ratio of at least 30%. Forecast payout ratio for the fiscal year ending March 2027 is 37.8%, and total payout ratio is 61.6%. |
| Acquisition of treasury shares | Up to ¥6 billion, with the shares scheduled to be cancelled after repurchase. The repurchase period is not disclosed. |
| Orders received and order backlog | Machine tool orders were ¥3,610 million (up 42.2% year on year). The order backlog is not disclosed. |
| Market Size / Share | 36.2% share of the domestic corporate PC market and 28.6% share of the overall domestic PC market (fiscal year ended March 2026). No. 1 domestic share in vertical lathes. |
| New initiatives | Beginning formulation of the next medium-term management plan, stabilizing product supply and profitability through strategic procurement, developing new functions and increasing service personnel in the machine tools business, rebranding activities, and the planned repurchase and cancellation of treasury shares |
Items this document does not state (3)
Number of employeesCapital expendituresKey points of the Q&A
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.Revenue increased on growth in sales of servers, networks and software, the acquisition of large-scale projects related to data center investment, and large-scale education-sector projects. Operating profit declined due to a lower gross profit margin following the exceptionally high level recorded in the first quarter of the previous year, higher SG&A expenses from base-pay increases and advertising costs, and lower profit in the industrial machinery business.
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