3Q cumulative results are on track for the full-year plan, but 4Q delivery performance will determine whether FY2026 targets are met

Revenue for the cumulative 3Q period of the fiscal year ending September 2026 was ¥12,434 million, up 25.5% year on year, while operating profit was ¥463 million, up 62.8%. The full-year forecast is ¥14,800 million in revenue, ¥550 million in operating profit, ¥560 million in profit before tax and ¥320 million in profit attributable to owners of the parent. Cumulative 3Q progress was 84.0%, 84.2%, 73.2% and 70.3%, respectively. Revenue and operating profit are ahead of the 75% mark represented by the elapsed period, but profit before tax and net profit are still lagging.

According to the earnings presentation, standalone 3Q revenue was ¥5,469 million and operating profit was ¥436 million, making the key profit measures record highs for a standalone quarter. However, the gap to the full-year forecast is only ¥2,366 million for revenue and ¥87 million for operating profit, meaning the company plan requires relatively little profit in 4Q. This suggests that profit may have been brought forward into the first 3 quarters, while also leaving room for the 4Q revenue mix and margin to weaken if the recognition of large 3Q projects has run its course.

The company left its full-year forecasts unchanged but said the delivery outlook for its core high-priced products remains uncertain. Of the ¥2.366 billion in revenue still required in 4Q, it has not disclosed how much will come from overseas AI server-related business or acquired companies, or whether that revenue will generate a margin sufficient to produce at least ¥87 million in operating profit. At the next earnings release, the key points will be whether full-year results exceeded ¥14.800 billion in revenue and ¥550 million in operating profit, the delivery schedule and project recognition timing if they fell short, and any new outlook for revenue growth and margins in the fiscal year ending September 2027.