The Q1 upward revision is the starting point; H1 will show progress toward the full-year plan

FY2027 Q1 revenue was ¥819.8 billion, up 14.5% year on year; Non-GAAP operating profit was ¥74.7 billion, up 34.7%; and Non-GAAP net profit was ¥60.9 billion, up 38.6%. Operating profit under the earnings summary was ¥58,770 million, while quarterly profit attributable to owners of the parent was ¥49,698 million. The difference from Non-GAAP operating profit was approximately ¥15.9 billion, and the difference from Non-GAAP net profit was approximately ¥11.2 billion. At the next results announcement, it will be necessary to confirm not only profit growth excluding adjustment items, but also whether the improvement has extended to IFRS-based profit.

The full-year forecasts were raised at the Q1 results announcement from FY2026 year-end forecasts of ¥3,500 billion revenue, ¥420 billion Non-GAAP operating profit and ¥285 billion Non-GAAP net profit to ¥3,540 billion, ¥430 billion and ¥290 billion, respectively. The increases were ¥40 billion for revenue, ¥10 billion for operating profit and ¥5 billion for net profit. However, the Q1 materials state that the new consolidation of CSG has not been incorporated into the current full-year forecasts. The main driver of the upward revision was therefore progress in the existing businesses, while CSG remains a potential additional upside factor.

Dividing Q1 results by the full-year forecasts gives progress rates of approximately 23.2% for revenue, 17.4% for Non-GAAP operating profit and 21.0% for Non-GAAP net profit. Because the company has not disclosed an H1 forecast or the quarterly allocation of profit, reaching 50% in H1 cannot be treated as the company's plan. However, monitoring revenue of ¥1,770 billion, operating profit of ¥215 billion and net profit of ¥145 billion as benchmarks will help distinguish whether the weighting toward the second half reflects ordinary seasonality or deferred profit recognition.

At the next results announcement, the focus will be on cumulative H1 revenue, Non-GAAP operating profit and Non-GAAP net profit, as well as the reconciliation to GAAP operating profit. In particular, the Q1 materials did not disclose progress against the full-year forecasts, assumptions incorporated into the forecasts such as foreign-exchange rates and project recognition timing, or the order backlog. Even if the full-year forecasts are maintained, a more specific explanation will be needed as to whether the shortfall in H1 will be dependent on the second half or can be covered by improved profitability in the existing businesses.