FY2027 Q1: net income is ahead of schedule, with the quality of earnings to be assessed in the first half

Net income attributable to owners of the parent was ¥280,832 million in FY2027 Q1, up ¥173,544 million from ¥107,288 million in the year-earlier period. With the full-year forecast at ¥530,000 million, Q1 alone reached 53.0% of the full-year plan. On a simple calculation, ¥249,168 million in additional profit will be needed from Q2 onward to achieve the full-year forecast.

However, profit growth was greater below the operating level. Revenue increased 14.0% from ¥768,641 million in the year-earlier period to ¥876,628 million, while operating profit rose only 3.2%, from ¥129,750 million to ¥133,919 million. Since net income increased by substantially more than both revenue and operating profit, it will be important to determine whether the difference arose from non-operating gains and losses, equity-method investment gains and losses, gains and losses on the sale of subsidiaries and equity-method investments, valuation gains and losses, or the tax burden.

Net income attributable to owners of the parent was ¥447,265 million in the fiscal year ended March 2026, making the FY2027 full-year forecast of ¥530,000 million equivalent to an 18.5% year-on-year increase. Although first-quarter earnings progress is strong, the repeatability of earnings over the remaining 3 quarters will differ substantially depending on whether this reflects an improvement in underlying earnings power or includes volatile factors such as the sale and valuation of investments and equity-method gains and losses.

At the next interim results announcement, it will be important to review not only year-on-year operating profit and net income, but also the factors behind the change in net income on a monetary basis. In particular, whether the temporary investment gains and losses recorded in Q1 continue into Q2, whether operating profit also improves, and whether the ¥530.0 billion full-year forecast is maintained will be specific decision points for assessing earnings sustainability.