Q1 revenue was on plan, while operating profit and net income were ahead of schedule

In Q1, covering April to June 2026, revenue was ¥17,712 million, operating profit was ¥2,829 million, ordinary profit was ¥3,285 million and quarterly net income attributable to owners of the parent was ¥3,378 million. Year on year, revenue increased 15.2%, operating profit 7.9%, ordinary profit 18.4% and net income 18.0%, with all major profit lines increasing.

Compared with the full-year forecasts, revenue progress was ¥17,712 million ÷ ¥71,000 million, or 24.9%, almost matching the 25% of the fiscal year elapsed. Operating profit, however, was ¥2,829 million ÷ ¥10,000 million, or 28.3%, while net income was ¥3,378 million ÷ ¥8,600 million, or 39.3%. Ordinary profit also reached 31.6%, at ¥3,285 million ÷ ¥10,400 million, meaning profit progress was ahead of revenue progress.

Caution is needed before interpreting the lead in operating profit progress as an improvement in core profitability. The Q1 operating margin was approximately 16.0%, down approximately 1.1 percentage points from approximately 17.1% in the same quarter of the previous year. Net income progress was supported by factors including ¥472 million in dividend income and ¥1,553 million in gains on sales of investment securities, meaning part of the earnings increase came from outside operating activities.

For FY2027-H1, the mechanical benchmarks corresponding to 50% of the full-year forecasts, without adjusting for seasonality, are revenue of ¥35,500 million, operating profit of ¥5,000 million, ordinary profit of ¥5,200 million and net income of ¥4,300 million. These are not the company’s half-year forecasts, so failure to meet them alone should not be taken as indicating that the full-year plan will be missed. The key points are whether operating profit progress remains ahead of revenue progress on an H1 cumulative basis, and how much core profit excluding extraordinary gains accumulates.