FY2027 plan points to both strong growth and high profitability in Q1

Consolidated revenue in FY2026 was ¥7,774 million, operating profit was ¥685 million and net income attributable to owners of the parent was ¥590 million. Year on year, revenue rose 11.0% and operating profit increased 23.4%, while the operating margin improved to 8.8% according to the earnings presentation. For FY2027, the company forecasts revenue of ¥9,278 million, operating profit of ¥966 million, ordinary profit of ¥986 million and net income of ¥679 million. Against planned revenue growth of 19.3%, operating profit is projected to increase 40.9%, implying a plan based not only on growth but also on a further improvement in margins.

Dividing the FY2027 operating profit forecast by the revenue forecast gives an operating margin of approximately 10.4%. This exceeds the operating-margin target of at least 10.0% for the final year of Stage 2 of the medium-term management plan, although the revenue target is ¥722 million higher than the forecast. Accordingly, in Q1, the key issue will be whether the mix of high-gross-margin projects is being maintained and whether revenue growth is translating appropriately into operating profit, rather than simply how much revenue has grown.

The company has not disclosed a standalone Q1 earnings forecast. Therefore, approximately ¥2,320 million in revenue and ¥242 million in operating profit, calculated mechanically as one-quarter of the full-year forecasts of ¥9,278 million and ¥966 million, are arithmetic benchmarks for comparison, not the company’s own targets. Q1 of the prior fiscal year produced revenue of ¥1,874 million and operating profit of ¥182 million. It will be necessary to assess how far the FY2027 Q1 results exceed those levels and whether the improvement is driven primarily by revenue or by margins.

The company has attributed growth in revenue to the expansion of its Technology Solutions business, generative AI-related projects, next-generation payment platform projects and an increase in high-gross-margin projects. The Q1 results should show how much these projects actually contributed to revenue and gross profit, whether the full-year forecasts remain unchanged, whether there are signs of an upward or downward revision, and whether concrete progress rates for revenue and operating profit are disclosed.