¥66.403 billion in revenue and ¥17.288 billion in operating profit are needed in Q2 to meet the first-half forecast

Revenue in Q1 of the fiscal year ending March 2027 was ¥60,597 million and operating profit was ¥15,212 million, up 45.9% and 192.6%, respectively, year on year. The operating margin was 25.1%, a substantial improvement from approximately 12.5% in the same quarter of the previous year. Ordinary profit was ¥15,883 million, while profit attributable to owners of the parent was ¥12,622 million, keeping each stage of profit in the black.

Compared with the revised first-half forecasts, Q1 revenue progress was approximately 47.7%, calculated as ¥60,597 million ÷ ¥127,000 million, while operating profit progress was approximately 46.8%, calculated as ¥15,212 million ÷ ¥32,500 million. Accordingly, Q2 will need to deliver revenue of ¥66,403 million and operating profit of ¥17,288 million to meet the first-half forecasts on a simple basis. This translates into an operating margin of approximately 26.0% for Q2 alone, above the approximately 25.6% operating margin implied by the overall first-half forecasts.

The full-year forecasts are revenue of ¥244,000 million and operating profit of ¥60,000 million, implying a full-year operating margin of 24.6%. Q1's operating margin of 25.1% is above the full-year target, but determining whether the full-year target can be met based solely on one quarter's results requires confirmation of the timing of conversion from orders to sales and the product mix from Q2 onward. Q1 orders received were ¥85,784 million and the order backlog was ¥90,320 million, indicating strong leading indicators for revenue.

At the next earnings release, it will be necessary to check whether Q2 revenue and operating profit alone exceed the required levels above, and whether the full-year forecasts of ¥244,000 million in revenue and ¥60,000 million in operating profit are maintained or revised. The Q1 earnings presentation did not disclose progress against the full-year forecasts or the company's own assessment of the likelihood of meeting its plan, so it will also be important to see how specifically the company quantifies the revenue and profit levels required for the remainder of the year at the half-year stage.