FY2027-Q1: a period to confirm continued revenue growth alongside operating profit growth

In FY2026, revenue rose 11.4% year on year to ¥71,389 million, setting a new record high. Operating profit, however, increased only 0.1% to ¥12,033 million, ordinary profit rose 5.2% to ¥12,892 million, and net income attributable to owners of the parent increased only 0.9% to ¥9,571 million. Operating profit growth has virtually stalled relative to revenue growth, and the full-year operating margin declined 1.9 percentage points, from 18.8% in the previous fiscal year to 16.9%.

The company’s FY2027 plan calls for revenue of ¥73,500 million, operating profit of ¥12,500 million, ordinary profit of ¥12,900 million and net income attributable to owners of the parent of ¥9,600 million. Operating profit is expected to increase only 3.9% from the FY2026 result and net income just 0.3%, suggesting that the plan prioritizes revenue expansion and maintaining earnings levels rather than significant profit growth. Because quarterly company forecasts have not been disclosed, a simple one-quarter allocation gives Q1 reference figures of ¥18,375 million in revenue, ¥3,125 million in operating profit, ¥2,400 million in net income and ¥4,150 million in EBITDA. These are mechanical benchmarks that do not reflect seasonality and are not the company’s quarterly forecasts.

In the previous year’s FY2026-Q1, revenue was ¥18,742 million, operating profit was ¥3,386 million and quarterly net income attributable to owners of the parent was ¥2,577 million. FY2025-Q1 revenue was ¥15,659 million and operating profit was ¥3,632 million, so in FY2026-Q1 revenue increased 19.7% while operating profit declined, indicating that revenue expansion did not translate into earnings. In the next Q1, it will be necessary to confirm whether revenue and operating profit can at least exceed the prior-year Q1 results of ¥18,742 million and ¥3,386 million, respectively, and whether changes in SG&A expenses or the gross margin are limiting operating profit growth.

In terms of disclosure, the FY2026 earnings presentation showed full-year results and forecasts, but did not provide quarterly revenue and profit plans for FY2027-Q1 or progress targets reflecting seasonality. Accordingly, the next earnings release should be reviewed for revenue, operating profit, ordinary profit and net income, as well as segment progress rates, gross margin and the factors behind changes in SG&A expenses. Even if operating profit reaches ¥3,125 million in Q1, a year-on-year decline would suggest that achieving the full-year plan may be weighted toward the second half, which will need to be considered.