Full-year forecast calls for flat revenue and lower operating profit, with first-half run-rate progress in focus

FY2026 ended with revenue of ¥16,653 million, operating profit of ¥7,263 million and net income attributable to owners of the parent of ¥4,313 million. By contrast, the company's FY2027 forecast is revenue of ¥16,643 million, operating profit of ¥6,895 million, ordinary profit of ¥7,095 million and net income of ¥4,539 million. While revenue is expected to remain broadly flat, operating profit is forecast to decline by ¥368 million, or 5.1%. On a simple calculation, the operating margin is also expected to fall by approximately 2.2 percentage points, from 43.6% in FY2026 actual results to 41.4% in the FY2027 forecast.

FY2027-Q1 actual results were revenue of ¥4,084 million, operating profit of ¥1,707 million, ordinary profit of ¥1,764 million and net income of ¥1,199 million, representing year-on-year increases of 3.3%, 1.8%, 3.1% and 4.5%, respectively. Progress against the full-year forecast was 24.5% for revenue and 24.8% for operating profit, close to the simple benchmark at the point when one quarter of the year had elapsed. The company has not revised its full-year forecasts, and the start can currently be viewed as being in line with plan.

For the upcoming cumulative second quarter, ¥8,322 million in revenue and ¥3,448 million in operating profit, equivalent to 50% of the full-year forecast, will serve as simple run-rate benchmarks. However, quarterly fluctuations may arise from the timing of revenue recognition for product implementations, regulatory amendment-related responses and election-related projects, so falling below 50% alone should not immediately be judged as a failure to meet the plan. The important points are whether the company explains specific projects or cost plans indicating a second-half bias, and whether operating profit progress falls materially behind revenue progress.

In the FY2027 forecast, only net income is expected to increase, rising 5.2% from the previous year's actual result to ¥4,539 million. At the next results announcement, it will be important to confirm how much of the reversal of the investment securities valuation loss recorded in the previous fiscal year is incorporated into the reason net income is expected to increase despite lower operating profit. The annual dividend forecast is ¥77, an increase of ¥4 from the FY2026 actual dividend of ¥73, so the combination of the earnings forecast and shareholder returns policy also warrants attention.