Worth reading
71In 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
-41.7
Year-on-year change in operating profit (%)Wording
Conditional
How definitive the wording is.Contents of this document
Presentation materials for financial resultsFull fiscal year ended February 202613 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥40,006 million+12.0%
Operating profit¥625 million-41.7%
Ordinary income¥766 million-28.2%
Net income¥-600 million
Gross Profit Margin
Rate9.1%
Year-on-year change (points)△2.4pt
Operating profit margin
Rate1.6%
Year-on-year change (points)△1.4pt
Results for the three months of the current quarter
Net Sales¥10,936 million
Gross profit¥1,030 million
Operating profit¥261 million
Operating profit margin2.4%
Profit attributable to owners of the parent−¥94 million
Full-year earnings forecast
Fiscal year ending February 2027
Net Sales
¥47,184 million
Gross profit
¥4,832 million
Gross Profit Margin
10.2%
Operating profit
¥1,310 million
Operating profit margin
2.8%
Ordinary income
¥1,398 million
Ordinary income margin
3.0%
Profit attributable to owners of the parent
¥904 million
Net profit margin
1.9%
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。
Compared with the revised forecast as of 14 January for the fiscal year ending February 2026
Net Sales101.1%
Gross profit101.9%
Operating profit113.4%
Ordinary income115.1%
Profit attributable to owners of the parent+¥105 million
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Performance targets were not achieved in the first year due to special factors. Full-year results, however, exceeded the upwardly revised forecast issued in the third quarter.Key points of the Q&AKey questions raised by investors at the briefing and the company's answers
- Issues Impact of AI / Answer AI is a growth driver that increases cloud consumption rather than a substitution risk, and approximately 70% of G-gen’s projects are AI-related.
- Issues Unprofitable projects / Answer The Serverworks project is nearing completion, while the G-gen project is scheduled for completion around autumn 2026. Loss provisions have already been recorded, so the impact in the current fiscal year is expected to be limited.
- Issues Number of accounts and ARPU / Answer The factors were an increase in large-scale projects through the SCA with AWS, strong performance in cloud integration, and relatively limited RI purchases.
- Issues LTV / Answer The decline was temporary and resulted from a large-scale cancellation. The trend of total revenue increasing with the length of the customer relationship remains unchanged.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Resale+¥4,110 million
- Cloud Integration+¥94 million
- MSP+¥66 million
- Other regions+¥17 million
- Net sales+¥540 million
- Labor Costs−¥121 million
- Manufacturing expenses−¥4 million
- Resale purchases and other costs+¥4,241 million
- Provision for Losses on Contracts+¥88 million
- Selling, general and administrative expenses−¥13 million
- Personnel expenses+¥71 million
- Outsourcing expenses−¥94 million
- Communication expenses+¥48 million
- Recruitment expenses−¥29 million
- Depreciation+¥16 million
- Transfers to other accounts−¥67 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
- Exchange rate used for FY2027 resale revenue¥150.22 /US$
- Foreign exchange sensitivity¥278 million in revenue per year, ¥26 million in profit per year
New initiatives
- Signing a reseller agreement with Anthropic and launching Claude services
- Obtaining AWS AI Competency certification in the generative AI category
- A business policy built around three pillars: AI, security, and overseas expansion
- Strategic pricing that prioritizes expanding the resale customer base and acquiring accounts
- Increasing new graduate hiring for April 2026 to approximately twice the previous level
Key KPIsA metric the company considers important as a management benchmark.
- G-gen AI (Gemini)-related project ratioApproximately 70%
- Increase in G-gen new customers250 companies
- Stock revenue ratio94.2%
- Number of AWS accounts7,522 units
- ARPU18.7 K USD
- LTVYear on year against the same period last yearDecreased
Unit price and quantity metricsThese figures show sales broken down by price and volume.
- Number of cloud integration projects1,509 Engagements
- Average project value¥294 thousand
- Number of customers147 companies
- Average number of projects per customer2.07 Engagements
- Number of AWS accounts7,522 unitsYear on year against the same period last yearIncreased
- ARPU18.7 K USD
Segment results
Cloud business, a single segment. Consolidated revenue was ¥40,006 million and consolidated operating profit was ¥625 million. Segment-level forecasts were not disclosed.Medium-term management plan targets
FY2027 guidance under the new medium-term management policy: revenue of ¥47,184 million, operating profit of ¥1,310 million, and ordinary profit of ¥1,398 million. Compared with the previous medium-term plan, revenue is −¥165 million, operating profit is −¥62 million, and ordinary profit is −¥24 million.Financial targets
The company referred to a policy of improving ROE, but target and actual figures for ROE and other financial metrics were not disclosed.Market Size / Share
- 2025 cloud infrastructure services revenue$419.0 billion
- Cloud market growth rate27%
Number of employees
Number of Employees520 people
Changes during the period and hiring planThe number of new graduates joining in April 2026 was increased to approximately twice the previous level. The hiring plan for the current fiscal year is 107 people.
Acquisition of treasury shares
Number of shares acquired522,000 shares
Acquisition priceApproximately ¥1.116 billion
PeriodTwo transactions, in April 2025 and January 2026
| Item | Details |
|---|---|
| Document type | Presentation materials for financial results |
| Fiscal Period Covered | Full fiscal year ended February 2026 |
| Net Sales | ¥40,006 million (YoY +12.0%) |
| Operating profit | ¥625 million (YoY -41.7%) |
| Ordinary income | ¥766 million (YoY -28.2%) |
| Net income | ¥-600 million |
| Gross Profit Margin | Rate 9.1% / Year-on-year change (points) △2.4pt |
| Operating profit margin | Rate 1.6% / Year-on-year change (points) △1.4pt |
| Results for the three months of the current quarter | Net Sales ¥10,936 million / Gross profit ¥1,030 million / Operating profit ¥261 million / Operating profit margin 2.4% / Profit attributable to owners of the parent −¥94 million |
| Full-year earnings forecast | Fiscal year ending February 2027 Net Sales ¥47,184 million / Gross profit ¥4,832 million / Gross Profit Margin 10.2% / Operating profit ¥1,310 million / Operating profit margin 2.8% / Ordinary income ¥1,398 million / Ordinary income margin 3.0% / Profit attributable to owners of the parent ¥904 million / Net profit margin 1.9% |
| Progress against full-year forecast | Compared with the revised forecast as of 14 January for the fiscal year ending February 2026 Net Sales 101.1% / Gross profit 101.9% / Operating profit 113.4% / Ordinary income 115.1% / Profit attributable to owners of the parent +¥105 million |
| Self-assessment against the plan | Performance targets were not achieved in the first year due to special factors. Full-year results, however, exceeded the upwardly revised forecast issued in the third quarter. |
| Segment results | Cloud business, a single segment. Consolidated revenue was ¥40,006 million and consolidated operating profit was ¥625 million. Segment-level forecasts were not disclosed. |
| Breakdown of Factors Affecting the Change | Factors Resale / Amount +¥4,110 million, Factors Cloud Integration / Amount +¥94 million, Factors MSP / Amount +¥66 million, Factors Other regions / Amount +¥17 million, Factors Net sales / Amount +¥540 million, Factors Labor Costs / Amount −¥121 million, Factors Manufacturing expenses / Amount −¥4 million, Factors Resale purchases and other costs / Amount +¥4,241 million, Factors Provision for Losses on Contracts / Amount +¥88 million, Factors Selling, general and administrative expenses / Amount −¥13 million, Factors Personnel expenses / Amount +¥71 million, Factors Outsourcing expenses / Amount −¥94 million, Factors Communication expenses / Amount +¥48 million, Factors Recruitment expenses / Amount −¥29 million, Factors Depreciation / Amount +¥16 million, Factors Transfers to other accounts / Amount −¥67 million |
| Key KPIs | Indicator name G-gen AI (Gemini)-related project ratio / Value Approximately 70% / Year on year against the same period last year Not disclosed, Indicator name Increase in G-gen new customers / Value 250 companies / Year on year against the same period last year Not disclosed, Indicator name Stock revenue ratio / Value 94.2% / Year on year against the same period last year Not disclosed, Indicator name Number of AWS accounts / Value 7,522 units / Year on year against the same period last year Not disclosed, Indicator name ARPU / Value 18.7 K USD / Year on year against the same period last year Not disclosed, Indicator name LTV / Value Not disclosed / Year on year against the same period last year Decreased |
| Unit price and quantity metrics | Indicator name Number of cloud integration projects / Value 1,509 Engagements / Year on year against the same period last year Not disclosed, Indicator name Average project value / Value ¥294 thousand / Year on year against the same period last year Not disclosed, Indicator name Number of customers / Value 147 companies / Year on year against the same period last year Not disclosed, Indicator name Average number of projects per customer / Value 2.07 Engagements / Year on year against the same period last year Not disclosed, Indicator name Number of AWS accounts / Value 7,522 units / Year on year against the same period last year Increased, Indicator name ARPU / Value 18.7 K USD / Year on year against the same period last year Not disclosed |
| Number of employees | Number of Employees 520 people / Changes during the period and hiring plan The number of new graduates joining in April 2026 was increased to approximately twice the previous level. The hiring plan for the current fiscal year is 107 people. |
| Assumptions Underlying the Business Outlook | Item Exchange rate used for FY2027 resale revenue / Value ¥150.22 /US$, Item Foreign exchange sensitivity / Value ¥278 million in revenue per year, ¥26 million in profit per year |
| Medium-term management plan targets | FY2027 guidance under the new medium-term management policy: revenue of ¥47,184 million, operating profit of ¥1,310 million, and ordinary profit of ¥1,398 million. Compared with the previous medium-term plan, revenue is −¥165 million, operating profit is −¥62 million, and ordinary profit is −¥24 million. |
| Financial targets | The company referred to a policy of improving ROE, but target and actual figures for ROE and other financial metrics were not disclosed. |
| Acquisition of treasury shares | Number of shares acquired 522,000 shares / Acquisition price Approximately ¥1.116 billion / Period Two transactions, in April 2025 and January 2026 |
| Market Size / Share | Item 2025 cloud infrastructure services revenue / Value $419.0 billion, Item Cloud market growth rate / Value 27% |
| Key points of the Q&A | Issues Impact of AI / Answer AI is a growth driver that increases cloud consumption rather than a substitution risk, and approximately 70% of G-gen’s projects are AI-related., Issues Unprofitable projects / Answer The Serverworks project is nearing completion, while the G-gen project is scheduled for completion around autumn 2026. Loss provisions have already been recorded, so the impact in the current fiscal year is expected to be limited., Issues Number of accounts and ARPU / Answer The factors were an increase in large-scale projects through the SCA with AWS, strong performance in cloud integration, and relatively limited RI purchases., Issues LTV / Answer The decline was temporary and resulted from a large-scale cancellation. The trend of total revenue increasing with the length of the customer relationship remains unchanged. |
| New initiatives | Signing a reseller agreement with Anthropic and launching Claude services, Obtaining AWS AI Competency certification in the generative AI category, A business policy built around three pillars: AI, security, and overseas expansion, Strategic pricing that prioritizes expanding the resale customer base and acquiring accounts, Increasing new graduate hiring for April 2026 to approximately twice the previous level |
Items this document does not state (7)
Selling, general and administrative expensesNumber of stores and locationsRisk amount incorporated into the outlookAnnual DividendPayout ratioCapital expendituresOrders received and order backlog
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 company cited ¥441 million in additional costs related to unprofitable G-gen projects, ¥215 million in additional costs related to unprofitable Serverworks projects, the impact of the stronger yen, a one-time ¥742 million amortization of goodwill related to G-gen, a ¥62 million extraordinary loss relating to a specific customer, and a ¥143 million reduction in deferred tax assets. Revenue, meanwhile, increased as demand in the cloud market remained strong and Serverworks and G-gen continued to build revenue.
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