Q1 on track; FY2027-H1 hinges on profit progress and second-half dependence

FY2027-Q1 revenue was ¥424,017 million, up 13.5% year on year, while operating profit was ¥18,880 million, up 22.6%. The full-year forecasts are revenue of ¥1,665,000 million and operating profit of ¥71,000 million, implying simple progress rates of 25.5% and 26.6%, respectively. Adjusted EBITDA progress was also reported at 27.3%, ahead of operating profit. This indicates that, at least as of Q1, performance was not below plan.

Revenue growth included Gojob's contribution following consolidation and foreign-exchange effects. Profit growth benefited from selling, general and administrative expense optimisation, the resolution of delays in intra-group projects that occurred in the year-earlier quarter, and lower system renewal costs. Accordingly, in the next earnings release it will be necessary to separate how much of the ¥18,880 million in operating profit came from higher gross profit and recurring cost efficiencies, and how much reflected the unwinding of temporary costs from the previous year.

At present, the operating profit forecast for FY2027-H1 as a whole, SBU-level H1 forecasts, orders received, order backlog and regional revenue have not been disclosed. Even if the ¥71,000 million full-year forecast is maintained, the earnings materials do not provide sufficient visibility into whether H1 operating profit is expected to fall below the year-earlier period or how much profit acceleration is assumed in H2. On a cumulative second-quarter basis, in addition to checking whether operating profit progress exceeds 25% for the full year, we will assess the reasons for any H1 decline and the basis for the H2 recovery.

The company changed part of the Staffing business to “Other” effective 1 April 2025, and part of “Other” to “Adjustments” effective 1 August 2025. The year-earlier segment information has also been reclassified to the new categories. It will be important to determine whether the current disclosure units, comprising Staffing, BPO, Technology, Career and Asia Pacific plus “Other” and “Adjustments,” will be maintained next time, and whether the comparison tables distinguish restructuring effects from organic growth rather than conflating them.