Will the assumption of approximately 30% growth in the DX business be validated in FY2027-Q1?

In FY2026, the DX business reported revenue of ¥3,966.097 million and segment profit of ¥1,582.735 million, increases of 17.1% and 11.9%, respectively, from the previous fiscal year. In the first half of FY2026, however, revenue was ¥1,710.805 million, segment profit was ¥577.649 million, and the profit margin was limited to 33.8%, as upfront investments including organizational development weighed on earnings. For the nine months of FY2026, revenue had reached ¥2,756.220 million and segment profit ¥1,001.487 million.

At the full-year results briefing, management explained that it expects approximately 30% year-on-year revenue growth in the DX business in FY2027, while assuming that revenue from existing proprietary products and companies brought into the group through M&A will remain broadly flat. Applying 30% mechanically to FY2026 DX business revenue of ¥3,966.097 million produces approximately ¥5,155.926 million, but this is an analytical benchmark to be tested at the next results announcement, not formal guidance for the DX business. Similarly, applying 30% growth mechanically to FY2026-Q1 revenue of ¥926.133 million produces approximately ¥1,204.000 million, although quarterly seasonality has not been disclosed.

Of the ¥3,858.493 million in consolidated revenue for the nine months of FY2026, the DX business accounted for ¥2,756.220 million and the product business for ¥1,254.055 million. Accordingly, the current increase in revenue depends heavily on development orders in the DX business. If growth in the DX business slows, the key issue will be whether expansion in the product business alone can offset the impact and support the full-year plan. Previous earnings reports have not disclosed the value of order intake or the order backlog, or broken orders down into new and recurring projects.

In FY2027-Q1, in addition to assessing how much revenue exceeds the ¥926.133 million reported in the year-earlier quarter, we will check whether segment profit exceeds the ¥350.265 million reported in the same quarter and whether the profit margin falls further from approximately 37.8%. To determine whether higher revenue reflects the booking of a single large project or is accompanied by growth in the order backlog and customer base, additional disclosure of order intake, order backlog, project count, and revenue by major customer will be important.