Komori
Earnings presentation4012AXIS CO.,LTD.Information and Communications, Services and Others

Supplementary Materials for the Third Quarter of the Fiscal Year Ending December 2026

Revenue and profit increased in the third quarter of the fiscal year ending December 2026, driven by an increase in major projects and other factors, and operating profit reached a record high for a third quarter. While the full-year earnings forecast was unchanged, the company will transition to consolidated reporting from the fourth quarter following the acquisition of WPC Co. as a subsidiary.

Worth reading
82Important
Scored from 5 of 6 sections
Direction
Improvement
Direction inferred from the company’s description.
Scale
16
Year-on-year change in revenue (%)
Wording
Conditional
How definitive the wording is.

Contents of this document

Supplementary materials to the earnings reportQ3 FY202611 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥6,897 million+16.0%
Operating profit¥817 million+33.3%
Ordinary income¥833 million+32.0%
Net income¥536 million+31.8%
Gross Profit Margin
Rate25.9
Year-on-year change (points)1
Operating profit margin
Rate11.8
Year-on-year change (points)1.5
Results for the three months of the current quarter
Net Sales
¥2,392 million
Operating profit
¥241 million
RemarksThird quarter of fiscal 2026 only. Figures shown in the quarterly trend graph.
Full-year earnings forecast
Net Sales
¥9,444 million
Gross profit
¥2,381 million
Operating profit
¥1,000 million
Ordinary income
¥1,005 million
Net income for the current fiscal year
¥700 million
Earnings per share
¥162.61
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 Sales73
Gross profit75.1
Operating profit81.7
Ordinary income82.8
Quarterly net income76.6
Systems Services business revenue72.6
IT Services Business revenue81.4
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Good progress / Business plan generally on track / On track
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Change in operating profit
Operating profit, third quarter of fiscal year ending December 2025612
Impact of higher revenue624
Outsourcing cost factor-37
Personnel expense factor-299
Other cost factors-83
Third-quarter operating profit, fiscal year ending December 2026817
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Number of SI projects
    Actual results for the fiscal year ended December 2025347
    Outlook for fiscal year ending December 2026380
  • Average revenue per SI project
    Actual results for the fiscal year ended December 202522,186
    Outlook for fiscal year ending December 202623,607
  • Revenue per SI employee
    Actual results for the fiscal year ended December 202515,155
    Outlook for fiscal year ending December 202616,048
  • Number of KITARO contracts
    Actual results for the fiscal year ended December 20259,738
    Outlook for fiscal year ending December 202610,800
New initiatives
  • Work Prime Contract Co., Ltd. becoming a wholly owned subsidiary
  • Strengthening AI-driven development capabilities and training personnel
  • Launch of a flexible dashcam
  • Launch of dashcam services for the overland transport industry
  • Begin providing the KITARO service for vessels
Key KPIsA metric the company considers important as a management benchmark.
  • System services business order backlog¥2,239 million
    Year on year against the same period last year+17.6%
  • Sales per employee (third quarter)¥4,331 thousand
  • Number of KITARO contracts9,694 terminals
  • Sales in the banking sector
    Year on year against the same period last year+17.0%
  • Sales in the public and social infrastructure sector
    Year on year against the same period last year+30.3%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Average Customer SpendIncrease
  • Revenue per employee¥4,331 thousand
  • Number of KITARO contracts9,694 terminals
Segment results
Systems Services business
Net Sales
¥6,512 million+15.7%
IT Services Business
Net Sales
¥385 million+22.3%
Medium-term management plan targets
Payout ratioFiscal year ending December 2029: 40% or higher
Key initiativesExpansion of high-value-added areas
Orders received and order backlog
Order backlog
¥2,239 million+17.6%
Annual Dividend
Annual dividend per share¥57
Payout ratio
35.1
Contents of this document
ItemDetails
Document typeSupplementary materials to the earnings report
Fiscal Period CoveredQ3 FY2026
Net Sales¥6,897 million (YoY +16.0%)
Operating profit¥817 million (YoY +33.3%)
Ordinary income¥833 million (YoY +32.0%)
Net income¥536 million (YoY +31.8%)
Gross Profit MarginRate 25.9 / Year-on-year change (points) 1
Operating profit marginRate 11.8 / Year-on-year change (points) 1.5
Results for the three months of the current quarterNet Sales ¥2,392 million / Operating profit ¥241 million / Remarks Third quarter of fiscal 2026 only. Figures shown in the quarterly trend graph.
Full-year earnings forecastNet Sales ¥9,444 million / Gross profit ¥2,381 million / Operating profit ¥1,000 million / Ordinary income ¥1,005 million / Net income for the current fiscal year ¥700 million / Earnings per share ¥162.61
Progress against full-year forecastNet Sales 73 / Gross profit 75.1 / Operating profit 81.7 / Ordinary income 82.8 / Quarterly net income 76.6 / Systems Services business revenue 72.6 / IT Services Business revenue 81.4
Self-assessment against the planGood progress / Business plan generally on track / On track
Segment resultsSystems Services business Net Sales ¥6,512 million (YoY +15.7%) / Profit Not disclosed / IT Services Business Net Sales ¥385 million (YoY +22.3%) / Profit Not disclosed
Breakdown of Factors Affecting the ChangeChange in operating profit Operating profit, third quarter of fiscal year ending December 2025 612 / Impact of higher revenue 624 / Outsourcing cost factor -37 / Personnel expense factor -299 / Other cost factors -83 / Third-quarter operating profit, fiscal year ending December 2026 817
Key KPIsIndicator name System services business order backlog / Value ¥2,239 million / Year on year against the same period last year ¥17.6 million, Indicator name Sales per employee (third quarter) / Value ¥4,331 thousand / Year on year against the same period last year Not disclosed, Indicator name Number of KITARO contracts / Value 9,694 terminals / Year on year against the same period last year Not disclosed, Indicator name Sales in the banking sector / Value Not disclosed / Year on year against the same period last year ¥17 million, Indicator name Sales in the public and social infrastructure sector / Value Not disclosed / Year on year against the same period last year ¥30.3 million
Unit price and quantity metricsIndicator name Average Customer Spend / Value Increase / Year on year against the same period last year Not disclosed, Indicator name Revenue per employee / Value ¥4,331 thousand / Year on year against the same period last year Not disclosed, Indicator name Number of KITARO contracts / Value 9,694 terminals / Year on year against the same period last year Not disclosed
Assumptions Underlying the Business OutlookIndicator name Number of SI projects / Actual results for the fiscal year ended December 2025 347 Engagements / Outlook for fiscal year ending December 2026 380 Engagements, Indicator name Average revenue per SI project / Actual results for the fiscal year ended December 2025 ¥22,186 thousand / Outlook for fiscal year ending December 2026 ¥23,607 thousand, Indicator name Revenue per SI employee / Actual results for the fiscal year ended December 2025 ¥15,155 thousand / Outlook for fiscal year ending December 2026 ¥16,048 thousand, Indicator name Number of KITARO contracts / Actual results for the fiscal year ended December 2025 9,738 terminals / Outlook for fiscal year ending December 2026 10,800 terminals
Medium-term management plan targetsPayout ratio Fiscal year ending December 2029: 40% or higher / Key initiatives Expansion of high-value-added areas
Annual DividendAnnual dividend per share ¥57 / Interim Dividend Not disclosed / Year-end dividend Not disclosed
Payout ratio35.1
Orders received and order backlogOrders received Not disclosed / Order backlog ¥2,239 million (YoY +17.6%)
New initiativesWork Prime Contract Co., Ltd. becoming a wholly owned subsidiary, Strengthening AI-driven development capabilities and training personnel, Launch of a flexible dashcam, Launch of dashcam services for the overland transport industry, Begin providing the KITARO service for vessels
Items this document does not state (9)
Selling, general and administrative expensesNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookFinancial targetsAcquisition of treasury sharesCapital expendituresMarket Size / ShareKey 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.

The main factors behind the increases in revenue and profit were the accumulation of projects, mainly in the financial, public and social infrastructure, and information and communications sectors, increased orders, expansion in high-value-added areas, and higher average revenue per customer. While promoting productivity improvements through the use of AI, the company also made upfront investments, including strengthening its AI-driven development capabilities and recruiting and training personnel.

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