FY2027-Q1: Revenue increased across all 6 areas; focus shifts to sustaining strong HR growth and overall growth

FY2027-Q1 revenue was ¥3,844 million, up 16.5% year on year, while operating profit was ¥285 million, up 18.9%. The earnings presentation showed revenue of ¥800 million for Strategy & Domain, ¥642 million for Digital & DX, ¥824 million for HR, ¥777 million for Finance & M&A, ¥759 million for Brand & PR, and ¥40 million for Other, with all 6 areas reporting higher revenue year on year. Growth rates for the areas were 17.6%, 13.4%, 27.8%, 9.2%, 15.7%, and 1.4%, respectively, with HR recording the strongest growth.

In FY2026, the previous full fiscal year, all 6 areas also delivered higher revenue. HR grew 29.7% year on year, Digital & DX grew 10.1%, and Finance & M&A grew 12.6%. Accordingly, the key point in Q1 is not simply whether group-wide revenue increased, but whether demand that has continued from the previous fiscal year in HR, DX, and M&A is spreading across a broader range of areas, including Brand & PR and Strategy & Domain. Other revenue was small at ¥40 million in Q1 and increased only 1.4% year on year, so it will also be necessary to check whether this area declines again in the second half.

The full-year targets are revenue of ¥17,200 million, operating profit of ¥1,900 million, and net income attributable to owners of the parent of ¥1,155 million. A basic initial checkpoint against the full-year targets will be whether the company can secure revenue of ¥8,600 million and operating profit of ¥950 million in the first half. However, the company materials do not specify Q1 progress against the full-year targets or the revenue required over the remaining period. In FY2027-H1, it will therefore be important to see whether progress against the full-year targets is disclosed in addition to revenue by area.

Profit by area has not been disclosed, so the extent to which higher revenue in HR and Digital & DX contributes to operating profit cannot be directly verified externally. In the next earnings release, it will be necessary to check whether year-on-year comparisons across the 6 areas use the same classification, the extent of growth in the existing business excluding contributions from acquired companies, and whether profit by area or at least the direction of area-level margins is disclosed.