Worth reading
65In 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
10
Millions of yen (year-on-year increase in operating profit)Wording
Conditional
How definitive the wording is.Contents of this document
Financial results presentationFY ending August 2026, third quarter11 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥18,910 million+2.0%
Operating profit¥2,019 million+0.5%
Ordinary income¥2,061 million+0.5%
Net income¥1,247 million -5.1%net income attributable to owners of the parent
Gross Profit Margin28.1 %
Operating profit margin12.7 %
Selling, general and administrative expenses¥3,072 million
Results for the three months of the current quarter
Net Sales
¥6,454 million
Gross profit
¥1,806 million
Operating profit
¥817 million
By segmentDigital Integration: revenue of ¥6,211 million and segment profit of ¥828 million; みどりクラウド: revenue of ¥49 million and segment loss of ¥29 million; Mechanical Design Engineering: revenue of ¥194 million and segment profit of ¥13 million
Full-year earnings forecast
Net Sales
¥27,400 million
Operating profit
¥2,850 million
Ordinary income
¥2,880 million
Net income
¥1,870 million net income attributable to owners of the parent
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 Sales69.0%
Operating profit70.9%
Ordinary income71.6%
Net income66.7%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Revenue is behind the full-year plan. Operating profit is progressing broadly in line with plan. The number of partner engineers in operation is below plan.Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Insufficient sales resources
- Delay in increasing the proportion of quasi-mandate and contract projects
- Shortage of project managers
- Insufficient reassignment support after projects ended
- Number of partner engineers in operation below plan
New initiatives
- Establishment of a dedicated business partner division
- Strengthening the assignment structure for partner engineers
- Early identification of project manager candidates and strengthening the training structure
- Establishment of the AI solutions business based on the Japanese FDE model
- Expansion of AI services using the company's NewtonX AI platform
- Holding an internal AI contest
- Adapting みどりクラウド's "ラクラク出荷" service for use in other fields
Key KPIsA metric the company considers important as a management benchmark.
- Number of partner companies2,541 companiesYear on year against the same period last year+654 companies
- Share of revenue from the DX business30.6 %Year on year against the same period last year+0.3 percentage points
- Share of orders from quasi-mandate and contracted projects54.4 %Year on year against the same period last year+3.2 percentage points
- Customers with order intake of ¥15 million or more116 companies
- Utilization rate of in-house engineers98.1 %
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Average customer spendThe average customer unit price in the third quarter of the fiscal year ending August 2026 was ¥10.595 million: ¥10.083 million for existing customers and ¥1.594 million for new customers. The total number of customers placing orders was 633, including 116 with orders of ¥15 million or more.
Segment results
Digital Integration
Net Sales
¥18,252 million+2.2%
Operating profit
¥2,062 million+0.4%
みどりクラウド (Midori Cloud)
Net Sales
¥165 million-17.5%
Operating profit
¥-99 million
Mechanical Design Engineering
Net Sales
¥602 million+4.4%
Operating profit
¥41 million+137.6%
Medium-term management plan targets
STEP1Establish the AI solutions business from 2026 to 2027
STEP2Achieve profit growth from 2027 to 2030 by maximizing AI talent and using AI
STEP3Create new businesses using agriculture, DX, and AI from 2030 onward
みどりクラウド (Midori Cloud)70 million records in the fiscal year ending August 2029
Market Size / Share
- Projected shortage of AI implementation talent: 120,000 people as of 2030
- Works Human Intelligence's domestic market share: 32.6% (No. 1 in Japan)
- Domestic market share of business-process digitalization systems: 29.0% (No. 1 in Japan)
Number of employees
Number of Employees3,224 people
Record date31 May 2026
Annual Dividend
Annual dividend per share¥17.4
Acquisition of treasury shares
Buyback limit
Up to ¥400,000,000
Number of SharesUp to 400,000 shares
Period8 August 2025 to 31 July 2026
Actual results
Shares acquired231,800 Shares
Amount spent on acquisitions353,757,400 Shares
Amount unit¥
| Item | Details |
|---|---|
| Document type | Financial results presentation |
| Fiscal Period Covered | FY ending August 2026, third quarter |
| Net Sales | ¥18,910 million (YoY +2.0%) |
| Operating profit | ¥2,019 million (YoY +0.5%) |
| Ordinary income | ¥2,061 million (YoY +0.5%) |
| Net income | ¥1,247 million (net income attributable to owners of the parent) (YoY -5.1%) |
| Gross Profit Margin | 28.1 % |
| Operating profit margin | 12.7 % |
| Selling, general and administrative expenses | ¥3,072 million |
| Results for the three months of the current quarter | Net Sales ¥6,454 million / Gross profit ¥1,806 million / Operating profit ¥817 million / By segment Digital Integration: revenue of ¥6,211 million and segment profit of ¥828 million; みどりクラウド: revenue of ¥49 million and segment loss of ¥29 million; Mechanical Design Engineering: revenue of ¥194 million and segment profit of ¥13 million |
| Full-year earnings forecast | Net Sales ¥27,400 million / Operating profit ¥2,850 million / Ordinary income ¥2,880 million / Net income ¥1,870 million (net income attributable to owners of the parent) |
| Progress against full-year forecast | Net Sales 69.0% / Operating profit 70.9% / Ordinary income 71.6% / Net income 66.7% |
| Self-assessment against the plan | Revenue is behind the full-year plan. Operating profit is progressing broadly in line with plan. The number of partner engineers in operation is below plan. |
| Segment results | Digital Integration Net Sales ¥18,252 million (YoY +2.2%) / Operating profit ¥2,062 million (YoY +0.4%) / みどりクラウド (Midori Cloud) Net Sales ¥165 million (YoY -17.5%) / Operating profit ¥-99 million / Mechanical Design Engineering Net Sales ¥602 million (YoY +4.4%) / Operating profit ¥41 million (YoY +137.6%) |
| Breakdown of Factors Affecting the Change | Insufficient sales resources, Delay in increasing the proportion of quasi-mandate and contract projects, Shortage of project managers, Insufficient reassignment support after projects ended, Number of partner engineers in operation below plan |
| Key KPIs | Indicator name Number of partner companies / Value 2,541 companies / Year on year against the same period last year +654 companies, Indicator name Share of revenue from the DX business / Value 30.6 % / Year on year against the same period last year +0.3 percentage points, Indicator name Share of orders from quasi-mandate and contracted projects / Value 54.4 % / Year on year against the same period last year +3.2 percentage points, Indicator name Customers with order intake of ¥15 million or more / Value 116 companies / Year on year against the same period last year Not disclosed, Indicator name Utilization rate of in-house engineers / Value 98.1 % / Year on year against the same period last year Not disclosed |
| Unit price and quantity metrics | Average customer spend The average customer unit price in the third quarter of the fiscal year ending August 2026 was ¥10.595 million: ¥10.083 million for existing customers and ¥1.594 million for new customers. The total number of customers placing orders was 633, including 116 with orders of ¥15 million or more. / Number of versions Not disclosed |
| Number of employees | Number of Employees 3,224 people / Record date 31 May 2026 / Change during the period Not disclosed / Hiring plan Not disclosed |
| Medium-term management plan targets | STEP1 Establish the AI solutions business from 2026 to 2027 / STEP2 Achieve profit growth from 2027 to 2030 by maximizing AI talent and using AI / STEP3 Create new businesses using agriculture, DX, and AI from 2030 onward / みどりクラウド (Midori Cloud) 70 million records in the fiscal year ending August 2029 |
| Annual Dividend | Annual dividend per share ¥17.4 / Interim Not disclosed / End of period Not disclosed |
| Acquisition of treasury shares | Buyback limit Number of Shares Up to 400,000 shares / Amount Up to ¥400,000,000 / Period 8 August 2025 to 31 July 2026 / Actual results Shares acquired 231,800 Shares / Amount spent on acquisitions 353,757,400 Shares / Amount unit ¥ |
| Market Size / Share | Projected shortage of AI implementation talent: 120,000 people as of 2030, Works Human Intelligence's domestic market share: 32.6% (No. 1 in Japan), Domestic market share of business-process digitalization systems: 29.0% (No. 1 in Japan) |
| New initiatives | Establishment of a dedicated business partner division, Strengthening the assignment structure for partner engineers, Early identification of project manager candidates and strengthening the training structure, Establishment of the AI solutions business based on the Japanese FDE model, Expansion of AI services using the company's NewtonX AI platform, Holding an internal AI contest, Adapting みどりクラウド's "ラクラク出荷" service for use in other fields |
Items this document does not state (8)
Number of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookFinancial targetsPayout ratioCapital 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.In Digital Integration, results benefited from operational support and adoption support for enterprise customers, higher added value in the systems integration business, growing demand in the DX business, and the use of business partners. Operating profit increased despite continued investment in the use of partner engineers, AI skills training, and strengthening the sales organization. The delay in revenue against plan was due to the number of partner engineers in operation falling short of plan. The underlying factors included insufficient sales resources, delays in increasing the proportion of quasi-mandate and contract projects, a shortage of project managers, and insufficient reassignment support after projects ended.
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