Revenue led in H1; Q3 will show whether earnings can catch up with the full-year plan

FY2026-H1 revenue was ¥764.6 million, operating profit was ¥136.7 million, ordinary profit was ¥138.7 million, and interim net income was ¥97.1 million. Year on year, revenue increased 22.0%, operating profit 34.6%, ordinary profit 59.5%, and interim net income 69.0%, with all earnings metrics increasing. Progress against the full-year plan was approximately 50.2% for revenue, 45.1% for operating profit, and 47.3% for net income, meaning that operating profit and net income are progressing slightly more slowly than revenue.

If the full-year plan is simply divided between H1 and H2, the remaining six months require approximately ¥755.4 million in revenue, ¥164.3 million in operating profit, and ¥107.9 million in net income. The revenue requirement is broadly in line with the H1 result of ¥764.6 million and appears achievable if projects do not lose momentum. However, the company will need to earn more operating profit in H2 alone than the ¥136.7 million generated in H1. This requires examining not only revenue accumulation but also the project mix and cost ratio.

As a neutral progress benchmark at Q3, the 75% level of the full-year plan would be ¥1,140 million in revenue, ¥225.75 million in operating profit, and ¥153.75 million in net income. However, the company does not quantitatively disclose quarterly seasonality or the timing of project recognition, so failure to reach 75% does not by itself indicate that the full-year plan will be missed. In the Q3 results briefing, the timing of revenue recognition, progress on large development projects, and the contribution from ARR and new SaaS will be key items to monitor.

The company operates in a single DX Solutions segment and does not disclose revenue or profit by segment. Accordingly, in Q3 it will be important to see whether the company provides a breakdown of CIERTO recurring revenue, initial fees, development projects, and SI projects, rather than only the group-wide revenue growth rate. Even if the full-year forecast is maintained, key points will be which projects will cover the amounts required for the remainder of the year and which expense items will absorb the gap in operating profit progress.