Worth reading
37Immaterial
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
-26.9
Year-on-year change in operating income (%)Wording
Conditional
How definitive the wording is.Contents of this document
Results presentationQ3 FY20268 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥7,165 million+9.3%
Operating profit¥297 million-26.9%
Ordinary income¥285 million-32.7%
Net income¥147 million-48.7%
Gross Profit Margin36.6%
Operating profit margin4.1%
Selling, general and administrative expenses¥2,327 million
Full-year earnings forecast
Net Sales
¥10,304 million
Ordinary income
¥600 million
Ordinary income margin
5.9%
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。
Net Sales69.5%
Cost of sales70.5%
Gross profit67.9%
Selling, general and administrative expenses71.5%
Operating profit48.6%
Ordinary income47.2%
Net income34.5%
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Increase in new contractsSubjectIncrease in revenue
- Higher sales in the facial recognition and generative AI businessesSubjectIncrease in revenue
- Increase in research expenses to strengthen facial recognition productsSubjectContinued operating profit decline
- Increase in hiring and employee training expensesSubjectContinued operating profit decline
- Increase in personnel expenses associated with expanding overseas talentSubjectContinued operating profit decline
- Costs of opening employment facilities for people with disabilitiesSubjectContinued operating profit decline
New initiatives
- Collaboration with NTT DOCOMO BUSINESS
- Participation in the Council for Appropriate Ticket Distribution
- Opening of the Hiroshima sales office
- Opening of the Nagoya sales office
- Establishment of a facial recognition R&D center in Poland
- ServiceNow implementation support service and Challenge training service
Key KPIsA metric the company considers important as a management benchmark.
- Consolidated headcount1,059 People
- Cumulative number of certification holders746 People
- ServiceNow customer satisfaction4.82 Out of 5
- Cumulative number of ServiceNow customers65 companies
- Number of people employed with disabilities and others21 People
Segment results
- ITO＆BPONet Sales¥4,891 million (YoY +12.3%)Operating profit¥192 million (YoY -11.1%)Operating profit margin3.9%
- Cloud SolutionsNet Sales¥2,213 million (YoY +5.4%)Operating profit¥137 million (YoY -26.7%)Operating profit margin6.2%
- Overseas BusinessNet Sales¥347 million (YoY +254.1%)Operating profit¥-32 million (YoY -1,600.0%)Operating profit margin-9.4%
Financial targets
Equity ratio
Actual results60.3%
Number of employees
Consolidated1,059 People
Non-consolidated977 People
Record date31 October 2026
Annual Dividend
Annual dividend per share¥40
Interim Dividend¥20
Year-end dividend¥20
Payout ratio
Fiscal year ended December 2024: 40%, fiscal year ended December 2025: 41%, fiscal year ending December 2026: Not disclosed| Item | Details |
|---|---|
| Document type | Results presentation |
| Fiscal Period Covered | Q3 FY2026 |
| Net Sales | ¥7,165 million (YoY +9.3%) |
| Operating profit | ¥297 million (YoY -26.9%) |
| Ordinary income | ¥285 million (YoY -32.7%) |
| Net income | ¥147 million (YoY -48.7%) |
| Gross Profit Margin | 36.6% |
| Operating profit margin | 4.1% |
| Selling, general and administrative expenses | ¥2,327 million |
| Full-year earnings forecast | Net Sales ¥10,304 million / Ordinary income ¥600 million / Ordinary income margin 5.9% |
| Progress against full-year forecast | Net Sales 69.5% / Cost of sales 70.5% / Gross profit 67.9% / Selling, general and administrative expenses 71.5% / Operating profit 48.6% / Ordinary income 47.2% / Net income 34.5% |
| Segment results | Segment ITO＆BPO / Net Sales ¥4,891 million (YoY +12.3%) / Operating profit ¥192 million (YoY -11.1%) / Operating profit margin 3.9%, Segment Cloud Solutions / Net Sales ¥2,213 million (YoY +5.4%) / Operating profit ¥137 million (YoY -26.7%) / Operating profit margin 6.2%, Segment Overseas Business / Net Sales ¥347 million (YoY +254.1%) / Operating profit ¥-32 million (YoY -1,600.0%) / Operating profit margin -9.4% |
| Breakdown of Factors Affecting the Change | Item Increase in new contracts / Subject Increase in revenue, Item Higher sales in the facial recognition and generative AI businesses / Subject Increase in revenue, Item Increase in research expenses to strengthen facial recognition products / Subject Continued operating profit decline, Item Increase in hiring and employee training expenses / Subject Continued operating profit decline, Item Increase in personnel expenses associated with expanding overseas talent / Subject Continued operating profit decline, Item Costs of opening employment facilities for people with disabilities / Subject Continued operating profit decline |
| Key KPIs | Indicator name Consolidated headcount / Value 1,059 People / Year on year against the same period last year Not disclosed, Indicator name Cumulative number of certification holders / Value 746 People / Year on year against the same period last year Not disclosed, Indicator name ServiceNow customer satisfaction / Value 4.82 Out of 5 / Year on year against the same period last year Not disclosed, Indicator name Cumulative number of ServiceNow customers / Value 65 companies / Year on year against the same period last year Not disclosed, Indicator name Number of people employed with disabilities and others / Value 21 People / Year on year against the same period last year Not disclosed |
| Number of employees | Consolidated 1,059 People / Non-consolidated 977 People / Record date 31 October 2026 / Changes during the period and hiring plan Not disclosed |
| Financial targets | Equity ratio Actual results 60.3% / Target Not disclosed |
| Annual Dividend | Annual dividend per share ¥40 / Interim Dividend ¥20 / Year-end dividend ¥20 |
| Payout ratio | Fiscal year ended December 2024: 40%, fiscal year ended December 2025: 41%, fiscal year ending December 2026: Not disclosed |
| New initiatives | Collaboration with NTT DOCOMO BUSINESS, Participation in the Council for Appropriate Ticket Distribution, Opening of the Hiroshima sales office, Opening of the Nagoya sales office, Establishment of a facial recognition R&D center in Poland, ServiceNow implementation support service and Challenge training service |
Items this document does not state (12)
Results for the three months of the current quarterSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookMedium-term management plan targetsAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket 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.Revenue increased due to a rise in new contracts and higher sales in the facial recognition and generative AI businesses. Operating profit declined due to higher research expenses to strengthen facial recognition products, increased hiring and employee training expenses, higher personnel expenses associated with expanding overseas talent, and costs of opening employment facilities for people with disabilities.
How to read this page
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