As of Q3, operating profit exceeds 90% of the full-year forecast; focus turns to the full-year result and delivery of the ¥18 dividend

Cumulative revenue for the third quarter of FY2026 was ¥4,297 million, up 16.7% year on year, while operating profit was ¥586 million, up 25.8%. Ordinary profit was ¥606 million and quarterly net profit attributable to owners of the parent was ¥411 million, up 25.0% and 22.4% year on year, respectively. Revenue and every level of profit increased, indicating that performance remained on a higher-revenue, higher-profit trend at least through Q3.

The company's full-year forecasts are revenue of ¥5,650 million, operating profit of ¥633 million, ordinary profit of ¥656 million and net profit attributable to owners of the parent of ¥450 million. A simple calculation from the cumulative Q3 results indicates that Q4 requires approximately ¥1,353 million in revenue, ¥47 million in operating profit, ¥50 million in ordinary profit and ¥39 million in net profit. With operating-profit progress at 92.6%, well ahead of revenue progress at 76.1%, achieving the full-year forecast appears relatively undemanding on the profit side, but a meaningful volume of projects must be recorded in Q4 to meet the revenue forecast. The forecasts have been revised, but the specific pre-revision amounts and the size of the changes cannot be confirmed from the disclosed information. The next results should therefore be checked not only for achievement of the forecasts but also for which assumptions were changed.

By segment, cumulative Q3 revenue and segment profit were ¥3,593.6 million and ¥543.9 million for the Software Business, ¥614.8 million and ¥31.7 million for the Sensing Business, and ¥92.8 million and a ¥16.4 million segment loss for Other. The Software Business's high profit contribution is driving overall operating-profit progress, while the recovery of the Sensing Business and reduction in Other's losses will determine the quality of full-year earnings.

Regarding shareholder returns, the annual dividend forecast is ¥18, up ¥3 from the previous fiscal year's ¥15. Numerical targets such as the payout ratio and DOE could not be confirmed in this earnings disclosure. The FY2026 full-year results should therefore be checked for confirmation of the ¥18 dividend and whether the increase is explained as being based on a temporary rise in profit or as part of an ongoing shareholder-return policy. If operating profit exceeds the full-year forecast, particular attention should be paid to any additional dividend policy or reflection in the next-period forecast.