For FY2027-H1, the pace of reaching operating profit of ¥8,957 million will be the focus, more so than revenue.

Q1 revenue was ¥6,907 million, up 554.5% year on year. Progress against the full-year forecast of ¥26,752 million was 25.8%, slightly above the simple quarterly run-rate of 25%. Operating profit, by contrast, was ¥1,937 million, representing only 21.6% of the full-year forecast of ¥8,957 million. The roughly 4.2-point lag in profit progress relative to revenue progress is the first variance to verify in FY2027-H1.

Q1 consolidated operating margin was approximately 28.0%, calculated by dividing operating profit of ¥1,937 million by revenue of ¥6,907 million. The full-year plan calls for revenue of ¥26,752 million, operating profit of ¥8,957 million and an operating margin of 33.5%, implying a mechanically calculated operating margin of approximately 35.4% over the remaining period. This is not a figure the company has explicitly set as a quarterly target, but it is the mechanical level required to reach the full-year plan from the Q1 results and provides a benchmark for gauging how well the high-margin consulting and healthcare businesses continue in the second half.

In FY2026, revenue was ¥15,517 million and operating profit was ¥1,601 million. The FY2027 plan assumes substantial growth, with revenue up 72.4% and operating profit up 459.5% year on year. It includes not only growth in existing businesses but also contributions from consolidated subsidiaries, changes to the business-segment structure and the ramp-up of the AI business. Accordingly, the next results should be assessed not only on the company-wide revenue growth rate but also by identifying which segments drove the improvement in operating margin.

At the next interim results, revenue, operating profit and operating margin for the six months to Q2 should be reviewed together with progress against the full-year forecast. As a mechanical benchmark, revenue of ¥13,376 million and operating profit of ¥4,478.5 million represent 50% of the full-year plan, but these are not company targets adjusted for seasonality, so performance should not be judged solely on whether they are met. More important is whether operating profit is growing faster than revenue, how much the upfront costs of the nail and AI businesses are offsetting profit from the high-margin businesses, and whether the forecasts or their assumptions have been revised.