First-half revenue growth is on plan, but ¥1,654 million in operating profit must be generated in the second half

Revenue for the six months from January through June 2026 was ¥8,200.431 million, up 57.3% year on year, while operating profit was ¥1,646.375 million, up 41.6%. Profit before tax was ¥1,462.717 million and profit attributable to owners of the parent was ¥860.632 million, up 35.7% and 35.3%, respectively, from the same period a year earlier. Although the increase in revenue and profit was strong, operating profit growth of 41.6% lagged revenue growth of 57.3%, making the next point to confirm whether profit growth is keeping pace with revenue growth.

The full-year forecasts are revenue of ¥14,500 million, operating profit of ¥3,300 million, profit before tax of ¥3,000 million and profit attributable to owners of the parent of ¥1,900 million. At the end of the first half, progress was 56.6% for revenue, 49.9% for operating profit, 48.8% for profit before tax and 45.3% for profit attributable to owners of the parent. Revenue was clearly above the halfway point, while the profit measures were around 50% or below. On a simple calculation, meeting the full-year forecasts requires the company to generate ¥6,299.569 million in revenue, ¥1,653.625 million in operating profit, ¥1,537.283 million in profit before tax and ¥1,039.368 million in profit attributable to owners of the parent in the second half.

In the previous fiscal year ending December 2025, cumulative revenue through the third quarter was ¥8,402 million and operating profit was ¥1,811 million. These represented approximately 70.4% and 77.3%, respectively, of full-year revenue of ¥11,938 million and operating profit of ¥2,344 million. However, the number of consolidated subsidiaries increased by 6 in 2025, so a simple year-on-year comparison is affected by the difference in the scope of consolidation resulting from M&A. Accordingly, the third quarter should not be assessed against the prior-year progress rates as a direct target. Instead, it will be necessary to assess how much profit is accompanying the build-up in revenue, including the impact of M&A.

The company attributes its performance to steady order intake for technology, SaaS and various professional services, as well as contributions from group companies that became consolidated subsidiaries through M&A in the previous fiscal year. However, it has not disclosed order intake, order backlog or the revenue and profit increases by driver. In the third quarter, we will review cumulative revenue progress, operating profit progress, contributions from M&A subsidiaries and upfront investment in the AI and Technology areas, and assess whether maintaining the full-year forecasts is supported by the underlying performance.