Testing the launch of the FY2027-Q1 plan for higher revenue and operating profit

FY2026 revenue was ¥30,481 million, up 8.0% year on year, and operating profit was ¥4,697 million, up 2.0%. Revenue and operating profit reached record-high levels, but the operating margin declined 0.9 percentage points from 16.3% in the previous fiscal year to 15.4%, meaning that revenue growth did not translate directly into profit growth. The company's FY2027 forecast is revenue of ¥32,800 million, up 7.6%, operating profit of ¥5,000 million, up 6.4%, and net profit of ¥3,450 million, up 15.6%.

For FY2027-Q1, the starting points for comparison are prior-year revenue of ¥7,515 million and operating profit of ¥1,341 million. Applying the full-year year-on-year forecasts mechanically to Q1 produces a monitoring line of approximately ¥8,086 million for revenue and ¥1,427 million for operating profit. However, these are not the company's quarterly forecasts, merely benchmarks obtained by mechanically applying the full-year plan. Actual quarterly fluctuations will arise from the timing of project acceptance and consulting revenue recognition, so consistency with order value and order backlog should be assessed alongside the figures.

According to the earnings presentation materials, FY2026 fell short of the initial forecast by 8.5% for revenue, 7.9% for operating profit and 14.7% for net profit. Operating profit was supported by revenue growth in the businesses covered by consolidated financial reporting and lower outsourcing costs, while personnel expenses, recruitment costs, IT expenses, office relocation expenses and provisions for order losses weighed on results. The FY2027 forecast plans to add ¥303 million to operating profit from this post-shortfall level, making it important in Q1 to assess not only revenue growth but also whether the company can absorb personnel and investment expenses while maintaining its operating margin.

The next results release should confirm whether the company maintains its FY2027 forecast and whether it discloses progress rates for consolidated revenue and operating profit. Even if revenue of ¥8,086 million and operating profit of ¥1,427 million exceed FY2026-Q1 levels, it will be necessary to separately determine whether this depends on large projects or temporary acceptance. Without Q1 disclosure of segment revenue and operating profit, order value and order backlog, and changes in recruitment and personnel expenses, information for quantitatively assessing the likelihood of meeting the full-year plan will remain limited.