Q1 is broadly on track for the full-year plan, but growth is concentrated in Life & Industrial

FY2027-Q1 revenue was ¥457,318 million, up 15.0% year on year, while operating profit was ¥20,024 million, up 47.9%. With full-year forecasts of ¥1,925,000 million in revenue and ¥80,000 million in operating profit, Q1 progress rates were 23.8% for revenue and 25.0% for operating profit. Although quarterly seasonality and the consolidation periods of acquired companies need to be taken into account, the results as of Q1 do not appear to be materially behind the company’s plan.

By segment, Information Solutions revenue was ¥207,520 million, up just 0.5% year on year, while operating profit rose 23.3% to ¥6,226 million. Life & Industrial drove the group’s overall revenue and profit growth, with revenue of ¥212,189 million, up 57.3%, and operating profit of ¥14,605 million, up 56.7%. Electronics revenue fell 33.4% to ¥37,608 million, but operating profit increased 3.2% to ¥9,327 million.

In FY2026, revenue rose 5.0% to ¥1,805,033 million, while operating profit fell 21.1% to ¥67,108 million. As FY2027 guidance calls for revenue growth of 6.6% and operating profit growth of 19.2%, it will be important to see whether the Q1 operating profit progress rate of 25.0% is maintained through the first half. In particular, it is necessary to distinguish whether Q1 profit growth reflects acquisition effects and temporary consolidation factors in Life & Industrial, or includes improved profitability in existing businesses.

The Q1 financial summary did not disclose current-period or year-earlier operating margins, and no cash flow statement was prepared, so profitability and cash generation cannot yet be assessed together. In FY2027-H1, we will look for year-on-year revenue and profit changes across all 3 segments, whether the strong growth in Life & Industrial continues, whether the improvement in Information Solutions’ profit margin broadens, and how much of the decline in Electronics is offset by the other segments.