First-half earnings are ahead of revenue in reaching the full-year plan; Q3 focus is whether straight-line 75% progress can be reached

Revenue in the first half of FY2026 (year ending November) was ¥20,034.691 million, up 15.1% year on year, while operating profit was ¥4,424.396 million, up 51.4%. Ordinary profit was ¥4,597.988 million and interim net income attributable to owners of the parent was ¥3,086.584 million, up 51.2% and 44.8%, respectively. Progress against the full-year forecasts was 51.4% for revenue, 59.0% for operating profit, 59.7% for ordinary profit and 59.3% for net income, indicating that the earnings lines are progressing ahead of revenue.

If the full-year forecasts are simply allocated evenly across the four quarters, the cumulative Q3 benchmarks are revenue of ¥29,250 million, operating profit of ¥5,625 million, ordinary profit of ¥5,775 million and net income of ¥3,900 million. Working back from first-half results, standalone Q3 would need to deliver revenue of ¥9,215.309 million, operating profit of ¥1,200.604 million, ordinary profit of ¥1,177.012 million and net income of ¥813.416 million. These are mechanical benchmarks that do not account for seasonality or demand fluctuations and are not the company's Q3 forecasts.

Q1 revenue was ¥9,072 million and operating profit was ¥1,832 million, representing year-on-year growth of 6.5% and 34.2%, respectively. By the first-half cumulative period, growth had accelerated to 15.1% for revenue and 51.4% for operating profit. Q3 will show whether this acceleration continued or was concentrated in the first half. In particular, it will be important to see whether the operating profit progress rate of 59.0% rises to around 75% on a cumulative Q3 basis and whether the gap with revenue progress of 51.4% narrows.

As of the first-half results, the full-year forecasts remained unchanged at revenue of ¥39,000 million, operating profit of ¥7,500 million, ordinary profit of ¥7,700 million and net income of ¥5,200 million. In Q3, the focus is not simply whether revenue and earnings increase, but whether the plan based on improved first-half margins remains intact and whether the pattern of absorbing revenue shortfall risk through improved profitability continues.