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Financial results presentation3915TerraSky Co.,LtdInformation and Communications, Services and Others

Financial Results Presentation for the First Quarter of the Fiscal Year Ending February 2027

In Q1 of the fiscal year ending February 2027, revenue, operating profit, ordinary profit and net income all exceeded the year-earlier period, reaching record highs for a first quarter. Progress is also ahead of plan, at 23.1% for revenue and 22.3% for operating profit against the full-year forecasts.

Worth reading
58In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Improvement
Direction inferred from the company’s description.
Scale
20.3
% (year-on-year increase in consolidated revenue)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationFirst quarter of the fiscal year ending February 202712 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥7,946 million+20.3%
Operating profit¥566 million+79.0%
Ordinary income¥610 million+74.2%
Net income¥350 million+64.5%
Gross Profit Margin
Rate28.9%
Year-on-year change (points)Improved 1.0 percentage points from the year-earlier period
Operating profit margin
Rate7.1%
Year-on-year change (points)Increased 2.3 percentage points from the year-earlier period
Results for the three months of the current quarterRevenue of ¥7,946 million, operating profit of ¥566 million, ordinary profit of ¥610 million, and net income attributable to owners of the parent of ¥350 million. Gross margin for the three months was 28.9%, and operating margin was 7.1%.
Full-year earnings forecast
Net Sales
¥34,349 million
Operating profit
¥2,541 million
Ordinary income
¥2,628 million
Profit attributable to owners of the parent
¥1,526 million
EPS
¥118.21
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。
Net Sales23.1%
Operating profit22.3%
Ordinary income23.2%
Profit attributable to owners of the parent23.0%
EPS23.0%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Exceeded the initial Q1 plan. Operating profit significantly exceeded the initial plan, marking a strong start.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Factors contributing to the increase in operating profit included the group reorganization, lower outsourcing costs following the shift toward development led by in-house personnel, improved margins from the accumulation of large projects in the Solutions Business, and the Product Business returning to profitability. Breakdown by amount: Not disclosed.
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
The stated assumptions and initiatives include accumulating projects for the second half, accelerating collaborative projects with NTT DATA and Mizuho Bank, pursuing new initiatives such as BLADE and BPaaS, and continuing management efficiency improvements and cost control through the group reorganization. Numerical assumptions: Not disclosed.
New initiatives
  • Launch of operations for the AI-driven development model “BLADE”
  • Joint rollout of sales engagement BPaaS through a business alliance with Bridge International Group
  • Accelerating initiatives for collaborative projects with NTT DATA and Mizuho Bank
  • Opening 5 satellite offices in regional areas and establishing a regional recruitment model
Key KPIsA metric the company considers important as a management benchmark.
  • EPS¥27.16
    Year on year against the same period last year+64.5%
  • Salesforce ratio59.3 %
    Same-period previous-year figure60.3
  • Product Business subscription revenueUp 17.0% year on year
    Year on year against the same period last year+17.0%
  • mitoco X subscription revenueUp 11.2% year on year
    Year on year against the same period last year+11.2%
  • mitoco-related subscription revenueUp 28.6% year on year
    Year on year against the same period last year+28.6%
  • CLOUDSIGN subscription revenueUp 60.0% year on year
    Year on year against the same period last year+60.0%
  • SkyVisualEditor subscription revenueUp 0.1% year on year
    Year on year against the same period last year+0.1%
  • Workplace environment assessment in stress checksRanked first among 1,505 companies
Segment results
  • Solutions Business
    Net Sales¥7,355 million (YoY +20.0%)
    Profit¥920 million (YoY +24.2%)
  • Products Business
    Net Sales¥650 million (YoY +24.1%)
    Profit¥47 million
Financial targets
FY2027 year-end target
Operating profit¥2.5 billion
ROE10%
FY2026 year-end results
ROE13.3%
PBR1.8x
Recognized cost of capitalApproximately 7%
Market Size / Share
  • Japan's public cloud services market¥4.1423 trillion in 2024; ¥8.8164 trillion in 2029
    Additional information2024–2029 CAGR: 16.3%
  • Quantum computing software marketUS$1.1 billion in 2024; US$31.8 billion in 2034
    Additional information2024–2034 CAGR: 40%
  • Salesforce revenueFY12–FY26 CAGR: 23%; FY27–FY30 organic CAGR: 11% or more
Number of stores and locations
Locations, including 5 satellite offices, are listed. Period-end store count and the number of openings and closures during the period: Not disclosed.
Number of employees
Number of Employees1,745 people
Change during the periodIncreased by 131 people from the end of the previous fiscal year
Hiring planPlans to hire 104 new graduates in April 2026 and reach 1,871 group employees in FY2027
Annual Dividend
FY2027/2 forecast
Annual¥17.00
End of period¥17.00
Fiscal year ended February 2026 results
Annual¥16.00
End of period¥16.00
Payout ratio
A quantitative dividend payout ratio and DOE have not been defined at this stage.
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFirst quarter of the fiscal year ending February 2027
Net Sales¥7,946 million (YoY +20.3%)
Operating profit¥566 million (YoY +79.0%)
Ordinary income¥610 million (YoY +74.2%)
Net income¥350 million (YoY +64.5%)
Gross Profit MarginRate 28.9% / Year-on-year change (points) Improved 1.0 percentage points from the year-earlier period
Operating profit marginRate 7.1% / Year-on-year change (points) Increased 2.3 percentage points from the year-earlier period
Results for the three months of the current quarterRevenue of ¥7,946 million, operating profit of ¥566 million, ordinary profit of ¥610 million, and net income attributable to owners of the parent of ¥350 million. Gross margin for the three months was 28.9%, and operating margin was 7.1%.
Full-year earnings forecastNet Sales ¥34,349 million / Operating profit ¥2,541 million / Ordinary income ¥2,628 million / Profit attributable to owners of the parent ¥1,526 million / EPS ¥118.21
Progress against full-year forecastNet Sales 23.1% / Operating profit 22.3% / Ordinary income 23.2% / Profit attributable to owners of the parent 23.0% / EPS 23.0%
Self-assessment against the planExceeded the initial Q1 plan. Operating profit significantly exceeded the initial plan, marking a strong start.
Segment resultsSegment Solutions Business / Net Sales ¥7,355 million (YoY +20.0%) / Profit ¥920 million (YoY +24.2%), Segment Products Business / Net Sales ¥650 million (YoY +24.1%) / Profit ¥47 million
Breakdown of Factors Affecting the ChangeFactors contributing to the increase in operating profit included the group reorganization, lower outsourcing costs following the shift toward development led by in-house personnel, improved margins from the accumulation of large projects in the Solutions Business, and the Product Business returning to profitability. Breakdown by amount: Not disclosed.
Key KPIsIndicator name EPS / Value ¥27.16 / Year on year against the same period last year ¥64.5, Indicator name Salesforce ratio / Value 59.3 % / Same-period previous-year figure 60.3 %, Indicator name Product Business subscription revenue / Value Up 17.0% year on year / Year on year against the same period last year 17 %, Indicator name mitoco X subscription revenue / Value Up 11.2% year on year / Year on year against the same period last year 11.2 %, Indicator name mitoco-related subscription revenue / Value Up 28.6% year on year / Year on year against the same period last year 28.6 %, Indicator name CLOUDSIGN subscription revenue / Value Up 60.0% year on year / Year on year against the same period last year 60 %, Indicator name SkyVisualEditor subscription revenue / Value Up 0.1% year on year / Year on year against the same period last year 0.1 %, Indicator name Workplace environment assessment in stress checks / Value Ranked first among 1,505 companies / Year on year against the same period last year Not disclosed
Number of stores and locationsLocations, including 5 satellite offices, are listed. Period-end store count and the number of openings and closures during the period: Not disclosed.
Number of employeesNumber of Employees 1,745 people / Change during the period Increased by 131 people from the end of the previous fiscal year / Hiring plan Plans to hire 104 new graduates in April 2026 and reach 1,871 group employees in FY2027
Assumptions Underlying the Business OutlookThe stated assumptions and initiatives include accumulating projects for the second half, accelerating collaborative projects with NTT DATA and Mizuho Bank, pursuing new initiatives such as BLADE and BPaaS, and continuing management efficiency improvements and cost control through the group reorganization. Numerical assumptions: Not disclosed.
Financial targetsFY2027 year-end target Operating profit ¥2.5 billion / ROE 10% / FY2026 year-end results ROE 13.3% / PBR 1.8x / Recognized cost of capital Approximately 7%
Annual DividendFY2027/2 forecast Annual ¥17.00 / Interim Not disclosed / End of period ¥17.00 / Fiscal year ended February 2026 results Annual ¥16.00 / Interim Not disclosed / End of period ¥16.00
Payout ratioA quantitative dividend payout ratio and DOE have not been defined at this stage.
Market Size / ShareMarket Japan's public cloud services market / Value ¥4.1423 trillion in 2024; ¥8.8164 trillion in 2029 / Additional information 2024–2029 CAGR: 16.3%, Market Quantum computing software market / Value US$1.1 billion in 2024; US$31.8 billion in 2034 / Additional information 2024–2034 CAGR: 40%, Market Salesforce revenue / Value FY12–FY26 CAGR: 23%; FY27–FY30 organic CAGR: 11% or more
New initiativesLaunch of operations for the AI-driven development model “BLADE”, Joint rollout of sales engagement BPaaS through a business alliance with Bridge International Group, Accelerating initiatives for collaborative projects with NTT DATA and Mizuho Bank, Opening 5 satellite offices in regional areas and establishing a regional recruitment model
Items this document does not state (8)
Selling, general and administrative expensesUnit price and quantity metricsRisk amount incorporated into the outlookMedium-term management plan targetsAcquisition of treasury sharesCapital expendituresOrders received and order backlogKey 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 benefited from growth at Terrasky, BeeX and most subsidiaries. Operating profit benefited from last year's group reorganization, lower outsourcing costs following Terrasky's shift toward development led by in-house personnel, improved margins from large projects in the Solutions Business, and the Product Business returning to profitability.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Financial Results Presentation for the First Quarter of the Fiscal Year Ending February 2027 | TerraSky Co.,Ltd (3915) timely disclosure | Komori