The durability of the Q1 upward revision will depend on whether Japan's pull-forward demand continues into FY2027-H1.

In FY2027-Q1, consolidated revenue rose 18.0% year on year to ¥44,621 million, while operating profit increased 45.3% to ¥3,429 million. By segment, Japan generated revenue of ¥22,858 million and operating profit of ¥1,850 million, representing increases of 19.7% and 210.0%, respectively. Overseas revenue also rose 16.1% to ¥21,762 million, but operating profit fell 6.3% to ¥1,526 million, indicating that consolidated profit growth is highly dependent on Japan.

Following the Q1 results, the company raised its full-year forecasts to ¥172,000 million in revenue, ¥12,100 million in operating profit, ¥11,600 million in ordinary profit and ¥7,700 million in net income attributable to owners of the parent. Based on FY2026 results, simple Q1 progress rates are 25.9% for revenue, 28.3% for operating profit, 28.0% for ordinary profit and 33.0% for net income. These are not progress rates disclosed by the company, however, but figures calculated by dividing the three-month results for April to June by the full-year forecasts, and therefore do not reflect seasonality or a potential demand reversal in the second half.

The comparable period, FY2026-H1, generated revenue of ¥78,248 million and operating profit of ¥5,101 million. Accordingly, to confirm year-on-year revenue and profit growth in FY2027-H1, the company must exceed at least ¥78,248 million in revenue and ¥5,101 million in operating profit. Of particular importance will be whether Japan's Q1 operating profit of ¥1,850 million is maintained in Q2 and whether the impact of the new printer and the reversal of demand pulled forward ahead of price revisions emerge.

At the next results announcement, the achievability of the full-year forecasts should be assessed not only on a consolidated basis but also by separating revenue and operating profit in Japan and overseas operations. If only Japan outperforms while overseas profit continues to fall short, the Q1 upward revision should be viewed as being supported by temporary domestic growth rather than a sustained improvement in consolidated profit.