Progress against the upwardly revised first-half forecast is the first test for FY2027-H1

In the latest FY2027-Q1, revenue was ¥5,124 million, operating profit was ¥232 million, ordinary profit was ¥234 million, and net profit attributable to owners of the parent was ¥149 million. Revenue increased 15.0% year on year, but operating profit fell 1.2% and net profit fell 7.0%, showing that higher revenue has not translated directly into profit growth. As of Q1, the disclosed full-year forecasts were ¥20,000 million in revenue, ¥1,200 million in operating profit and ¥780 million in net profit.

The subsequent earnings revision on 30 October raised the FY2027-H1 forecasts to ¥10,300 million in revenue, ¥655 million in ordinary profit and ¥420 million in net profit. The full-year forecasts were also increased to ¥21,000 million in revenue, ¥1,475 million in ordinary profit and ¥1,000 million in net profit, while the operating profit forecast was set at ¥1,450 million. Accordingly, the next interim results should be measured not against the previous forecasts, but against the revised levels of ¥10,300 million in revenue and ¥655 million in ordinary profit.

The key question is not simply whether first-half results increased year on year, but how far each profit metric reached against the internal plan following the upward revision. In particular, if revenue exceeds ¥10,300 million but ordinary profit falls short of ¥655 million, project profitability, outsourcing and personnel costs, goodwill amortization, or other cost factors may have re-emerged. If both revenue and ordinary profit exceed the revised targets, it will be easier to conclude that the expansion of existing system renewal, security projects and end-user transactions began contributing to results in the first half.

The current revision does not disclose first-half operating profit, profit by service, or the project-level assumptions incorporated into the revised forecasts. The interim results should therefore show revenue, operating profit, ordinary profit and net profit separately, and clarify whether the full-year forecasts of ¥21,000 million in revenue and ¥1,450 million in operating profit will be maintained or revised again.