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Financial Results Presentation4076CNS Co.,Ltd.Information and Communications, Services and Others

Financial Results Briefing Materials for the Fiscal Year Ended May 2026

For the fiscal year ended May 2026, revenue, operating profit and net income exceeded the previous fiscal year, driven by the expansion of the Technology Solutions business and an increase in high-gross-margin projects. However, revenue and other items fell short of the revised forecast.

Worth reading
61In 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
11
Revenue year-on-year (%)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial Results PresentationFiscal year ending May 202611 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales7,774 Millions of yen+11.0%
Operating profit685 Millions of yen+23.4%
Ordinary income725 Millions of yen+24.0%
Net income590 Millions of yen+38.3%
Gross Profit Margin24.5%
Operating profit margin8.8%
Full-year earnings forecast
Net Sales
9,278 Millions of yen
Gross profit
2,486 Millions of yen
Operating profit
966 Millions of yen
Ordinary income
986 Millions of yen
Net income
679 Millions of yen
Earnings per share
¥233.66
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 Sales94.2%
Gross profit97.6%
Operating profit96.5%
Ordinary income98.9%
Net income111.1%
Earnings per share111.1%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Fell short of the revised forecast, particularly in revenue
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Increase in gross profit196 Millions of yen
  • Increase in selling, general and administrative expenses-66 Millions of yen
  • Increase in operating profit130 Millions of yen
  • Decrease in recruitment-related expenses12 Millions of yen
  • ERP-related investments-44 Millions of yen
  • Increase in costs related to the office relocation-29 Millions of yen
  • Other-25 Millions of yen
  • Other-8 Millions of yen
New initiatives
  • Full-scale implementation of the M&A strategy and a ¥2 billion M&A investment budget
  • Establishment of a dedicated ERP business organization
  • Internal implementation of Oracle NetSuite and development of industry-specific templates
  • Improve productivity through company-wide use of generative AI
  • Development of modernization services using AI-driven development
  • Diversification of recruitment methods for highly skilled professionals and revision of the evaluation system
Key KPIsA metric the company considers important as a management benchmark.
  • Strengthened business sales2,080 Millions of yen
  • Prime contractor revenue2,717 Millions of yen
    Year on year against the same period last year+16.9%
  • Prime sales ratio35 %
    Year on year against the same period last year+1.8 percentage points
  • Number of engineers238 people
    Year on year against the same period last year-1.7%
  • Average monthly business-partner utilization396 people
    Year on year against the same period last year+7.3%
Segment results
Technology Solutions business
Net Sales
3,579 Millions of yen+27.2%
Gross profit
1,034 Millions of yen+27.1%
Gross Profit Margin28.9%
Business Solutions business
Net Sales
3,459 Millions of yen+0.2%
Gross profit
617 Millions of yen-11.1%
Gross Profit Margin17.9%
Consulting business
Net Sales
734 Millions of yen-0.6%
Gross profit
250 Millions of yen+26.5%
Gross Profit Margin34.2%
Medium-term management plan targets
Stage 2
Target fiscal yearFiscal year ending May 2027
Net Sales¥10 billion
Operating profit margin10.0%
Stage 3
Target fiscal yearFiscal years ending May 2028 through May 2030
Net Sales¥15 billion
Operating profit margin12.0%
Market Size / Share
  • Domestic AI market¥1.8301 trillion in FY2025 and ¥3.1779 trillion in FY2029
  • Domestic DX-related market¥5.2759 trillion in FY2024 and ¥9.2666 trillion in FY2030
  • Domestic ERP market¥255.8 billion in FY2024, up 18.0% year on year
Number of employees
Consolidated279 people
As ofEnd of May 2026
Capital expenditures
¥421 million actual headquarters relocation
Annual Dividend
Fiscal year ending May 2026
Annual¥61
End of period¥55
Special and commemorative dividend¥6
Forecast for the fiscal year ending May 2027
Annual¥70
End of period¥70
Payout ratio
Target of at least 30% (actual payout ratio of 30.0% for the fiscal year ended May 2026 and forecast payout ratio of 30.0% for the fiscal year ending May 2027)
Contents of this document
ItemDetails
Document typeFinancial Results Presentation
Fiscal Period CoveredFiscal year ending May 2026
Net Sales7,774 Millions of yen (YoY +11.0%)
Operating profit685 Millions of yen (YoY +23.4%)
Ordinary income725 Millions of yen (YoY +24.0%)
Net income590 Millions of yen (YoY +38.3%)
Gross Profit Margin24.5%
Operating profit margin8.8%
Full-year earnings forecastNet Sales 9,278 Millions of yen / Gross profit 2,486 Millions of yen / Operating profit 966 Millions of yen / Ordinary income 986 Millions of yen / Net income 679 Millions of yen / Earnings per share ¥233.66
Progress against full-year forecastNet Sales 94.2% / Gross profit 97.6% / Operating profit 96.5% / Ordinary income 98.9% / Net income 111.1% / Earnings per share 111.1%
Self-assessment against the planFell short of the revised forecast, particularly in revenue
Segment resultsTechnology Solutions business Net Sales 3,579 Millions of yen (YoY +27.2%) / Gross profit 1,034 Millions of yen (YoY +27.1%) / Gross Profit Margin 28.9% / Business Solutions business Net Sales 3,459 Millions of yen (YoY +0.2%) / Gross profit 617 Millions of yen (YoY -11.1%) / Gross Profit Margin 17.9% / Consulting business Net Sales 734 Millions of yen (YoY -0.6%) / Gross profit 250 Millions of yen (YoY +26.5%) / Gross Profit Margin 34.2%
Breakdown of Factors Affecting the ChangeFactors Increase in gross profit / Amount 196 Millions of yen, Factors Increase in selling, general and administrative expenses / Amount -66 Millions of yen, Factors Increase in operating profit / Amount 130 Millions of yen, Factors Decrease in recruitment-related expenses / Amount 12 Millions of yen, Factors ERP-related investments / Amount -44 Millions of yen, Factors Increase in costs related to the office relocation / Amount -29 Millions of yen, Factors Other / Amount -25 Millions of yen, Factors Other / Amount -8 Millions of yen
Key KPIsIndicator name Strengthened business sales / Value 2,080 Millions of yen / Year on year against the same period last year Not disclosed, Indicator name Prime contractor revenue / Value 2,717 Millions of yen / Year on year against the same period last year 16.9 Millions of yen, Indicator name Prime sales ratio / Value 35 % / Year on year against the same period last year +1.8 percentage points, Indicator name Number of engineers / Value 238 people / Year on year against the same period last year -1.7 people, Indicator name Average monthly business-partner utilization / Value 396 people / Year on year against the same period last year 7.3 people
Number of employeesConsolidated 279 people / As of End of May 2026
Medium-term management plan targetsStage 2 Target fiscal year Fiscal year ending May 2027 / Net Sales ¥10 billion / Operating profit margin 10.0% / Stage 3 Target fiscal year Fiscal years ending May 2028 through May 2030 / Net Sales ¥15 billion / Operating profit margin 12.0%
Annual DividendFiscal year ending May 2026 Annual ¥61 / End of period ¥55 / Special and commemorative dividend ¥6 / Forecast for the fiscal year ending May 2027 Annual ¥70 / End of period ¥70
Payout ratioTarget of at least 30% (actual payout ratio of 30.0% for the fiscal year ended May 2026 and forecast payout ratio of 30.0% for the fiscal year ending May 2027)
Capital expenditures¥421 million (actual headquarters relocation)
Market Size / ShareMarket Domestic AI market / Value ¥1.8301 trillion in FY2025 and ¥3.1779 trillion in FY2029, Market Domestic DX-related market / Value ¥5.2759 trillion in FY2024 and ¥9.2666 trillion in FY2030, Market Domestic ERP market / Value ¥255.8 billion in FY2024, up 18.0% year on year
New initiativesFull-scale implementation of the M&A strategy and a ¥2 billion M&A investment budget, Establishment of a dedicated ERP business organization, Internal implementation of Oracle NetSuite and development of industry-specific templates, Improve productivity through company-wide use of generative AI, Development of modernization services using AI-driven development, Diversification of recruitment methods for highly skilled professionals and revision of the evaluation system
Items this document does not state (10)
Selling, general and administrative expensesResults for the three months of the current quarterUnit price and quantity metricsNumber of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookFinancial targetsAcquisition of treasury sharesOrders 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.

Gross profit increased as projects related to generative AI and next-generation cashless payment platforms expanded and the number of high-gross-margin projects increased, absorbing the rise in SG&A expenses. The company cited slower-than-expected growth in project wins, weaker demand for projects at the end of the fiscal year than in a typical year, and progress in withdrawing from low-profitability projects as reasons for the revenue shortfall against the revised forecast.

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Financial Results Briefing Materials for the Fiscal Year Ended May 2026 | CNS Co.,Ltd. (4076) timely disclosure | Komori