The first test of the FY2027 revenue and earnings growth plan is whether both revenue and profit increase in Q1

FY2026 full-year revenue was ¥15,325 million, up 11.2% year on year, and operating profit was ¥819 million, up 8.4%. For FY2027, the company plans revenue of ¥17,000 million, up 10.9%, and operating profit of ¥950 million, up 16.0%, implying stronger growth in operating profit than in revenue. The operating margin is calculated to improve by approximately 0.3 percentage points, from 5.3% in FY2026 to approximately 5.6% under the FY2027 plan.

In the previous year’s FY2026-Q1, revenue was ¥4,062 million, operating profit was ¥418 million, ordinary profit was ¥419 million, and net income for the quarter was ¥277 million. Accordingly, in the next FY2027-Q1, it will be important not only to determine whether revenue increases year on year, but also whether operating profit exceeds ¥418 million and provides initial evidence of progress toward the improvement in full-year margins.

At the same time, in its FY2026 earnings presentation, the company explained that revenue fell short of plan while profit exceeded plan. Factors behind the revenue shortfall included the persistently high proportion of recruitment-placement revenue, which generates relatively low recognized revenue, and utilization at the regional revitalization business falling below expectations. In the next earnings release, we will check whether these factors remain in FY2027-Q1 and whether the company quantitatively discloses the mix of temporary staffing and recruitment-placement revenue and utilization at the regional revitalization business.

Although the company has provided a full-year forecast for FY2027, it has not disclosed standalone Q1 revenue or operating profit forecasts, segment-level Q1 plans, or assumptions for advertising and personnel expenses. Given the impact of seasonality, the next release should be assessed using not only cumulative figures but also the standalone three-month results, year-on-year comparisons, progress toward the full-year plan, and whether the full-year forecast is maintained or revised.