The FY2027 revenue and profit growth plan depends on continued cloud and SI orders

FY2026 revenue rose 15.4% year on year to ¥31,091 million, while operating profit increased 33.7% to ¥2,966 million, lifting the operating margin to 9.5%. The company’s FY2027 forecasts call for revenue of ¥34,722 million, up 11.7%, and operating profit of ¥3,412 million, up 15.0%. Revenue growth is expected to slow from the FY2026 result, while the operating margin is projected at approximately 9.8%. The next Q1 will be the first opportunity to assess whether this profit growth plan is reproducible from the start of the fiscal year rather than simply a full-year target.

Cumulative FY2026 results were as follows: FY2026-Q1 revenue of ¥7,517 million and operating profit of ¥572 million; first-half revenue of ¥15,546 million and operating profit of ¥1,580 million; nine-month revenue of ¥23,042 million and operating profit of ¥2,407 million; and full-year revenue of ¥31,091 million and operating profit of ¥2,966 million. Operating margins were approximately 7.6%, 10.2%, 10.4% and 9.5%, respectively, remaining at a high level from the first half through the third quarter. In FY2027-Q1, the key issue will be not only revenue growth against the year-earlier benchmarks of ¥7,517 million in revenue and ¥572 million in operating profit, but also whether the margin at the start of the year has again fallen into the 7% range.

Cloud integration and systems integration are the main growth drivers. In FY2026, cloud integration generated revenue of ¥11,733 million and segment profit of ¥1,591 million, while SI generated revenue of ¥15,164 million and segment profit of ¥872 million. The company attributed the performance to demand for cloud infrastructure and data utilization in anticipation of DX and AI adoption in cloud integration, and to large M&A- and logistics-related projects in SI. The next Q1 should confirm whether orders from new and existing customers in these businesses are continuing, and whether the timing of acceptance for large projects is weighing on revenue recognition.

The information provided does not yet include FY2027-Q1 results or orders received and order backlogs as of Q1. Accordingly, the next earnings release should be assessed not only for consolidated revenue and operating profit, but also for revenue and profit across the 5 segments, management’s assessment of progress against the FY2027 full-year forecasts of ¥34,722 million and ¥3,412 million, and any delays in acceptance or changes in the profitability of large projects. In particular, it will be important to see whether the outlook for staffing, project mix, subcontracting costs and SG&A becomes more specific as the company seeks to maintain the full-year operating margin target of approximately 9.8%.