Profit is lagging revenue against the full-year plan. Can seasonality be absorbed in FY2027-H1?

FY2027-Q1 consolidated revenue was ¥3,243 million, operating profit was ¥208 million, ordinary profit was ¥222 million, and net profit attributable to owners of the parent was ¥155 million. The full-year forecasts are revenue of ¥17,500 million, operating profit of ¥1,600 million, ordinary profit of ¥1,555 million, and net profit of ¥1,150 million, resulting in progress rates of 18.5% for revenue, 13.0% for operating profit, and 13.5% for net profit. Both revenue and profit are below the simple 25% benchmark after one-quarter of the year, but the company considers the first quarter to have progressed smoothly, assuming seasonality in demand for health checkups.

In the company’s historical health checkup solutions business, quarterly revenue was concentrated in the second and third quarters, at ¥2,118 million in the first quarter, ¥4,654 million in the second quarter, ¥4,303 million in the third quarter, and ¥1,941 million in the fourth quarter. Accordingly, the key issue for FY2027-H1 is whether the company can capture the second-quarter peak in health checkup visits, which is more important than the progress rate alone. Total-company revenue for FY2026-H1 was ¥7,520 million and operating profit was ¥610 million, but the company has now moved to consolidated reporting. Care is therefore needed when making a simple year-on-year comparison, given the scope of consolidation and accounting comparability.

The first-quarter breakdown shows that the solutions business generated revenue of ¥2,304.475 million and an operating loss of ¥153.321 million, while the cloud business generated revenue of ¥938.634 million and operating profit of ¥365.057 million. Total-company operating profit of ¥208 million was generated by the cloud business offsetting the solutions business’s loss. In the interim period, it will be necessary to assess separately whether the health checkup solutions business eliminates its loss and whether the cloud business can sustain its high profitability.

At the next results announcement, the company will need to disclose not only whether it maintains its full-year forecasts but also interim results by segment, allowing its stated “smooth progress” to be tested in monetary terms. In particular, revenue of ¥8,750 million and operating profit of ¥800 million are not explicit interim targets set by the company. They are comparison benchmarks calculated mechanically as 50% of the full-year forecasts. If results fall below these levels, it will be necessary to determine whether this is due to seasonality, a greater concentration of earnings in the second half, or delays in the contribution from price revisions, new plans, and the use of AI.