Having generated most of the earnings forecast in the first half, the company now faces a test of whether this performance can be replicated from Q3 onward

FY2026-H1 revenue was ¥15,907 million, up 59.1% year on year, while operating profit was ¥2,196 million, up 220.6%. Ordinary profit was ¥2,191 million and interim net income attributable to owners of the parent was ¥1,361 million, representing year-on-year increases of 223.3% and 238.1%, respectively. Revenue, operating profit, ordinary profit and net income all grew substantially, resulting in a very strong first-half performance.

The revised full-year forecast presented in August calls for revenue of ¥30,000 million, operating profit of ¥2,600 million, ordinary profit of ¥2,600 million and net income attributable to owners of the parent of ¥1,600 million. First-half progress was 53.0% for revenue, compared with 84.5% for operating profit, 84.3% for ordinary profit and 85.1% for net income, putting the profit measures well ahead. On a simple calculation, the second half would need to generate approximately ¥14,092 million in revenue, ¥404 million in operating profit and ¥238 million in net income, so the first point to confirm in Q3 will be where nine-month cumulative profit stands relative to the full-year plan.

At the same time, the first half's high profitability included recognition of GSS projects carried over from the previous fiscal year, large projects and internally developed RevoWorks projects. Reports related to the earnings briefing indicated that second-half operating profit is expected to decline substantially from the first half, owing not only to the reaction to the accelerated recognition of large projects but also to growth investments, including hiring and advertising, aimed at the following fiscal year and beyond. The ¥2,196 million first-half operating profit should not simply be annualized; project recognition timing and investment costs need to be assessed separately.

In the Q3 results, we will check how far nine-month cumulative revenue has progressed toward the full-year forecast of ¥30,000 million and how much of the ¥2,600 million operating profit target has been accumulated. In particular, achievement of the full-year forecast will depend on whether the operating margin, which improved to 13.8% in the first half, is maintained, how much hiring, advertising and office-related costs arise in the second half, and whether new GSS orders fill the trough in revenue recognition.