Revenue on plan, profit ahead, but H1 repeatability is the focus

Revenue in Q1 of the fiscal year ending March 2027 was ¥226,259 million, while operating profit was ¥36,545 million. Against full-year forecasts of ¥957,000 million for revenue and ¥130,300 million for operating profit, progress was 23.6% and 28.0%, respectively. Q1 represents one-quarter of the full year. Revenue was 1.4 percentage points below the calendar-year pace, while operating profit was 3.0 percentage points ahead.

On the profit side, quarterly profit attributable to owners of the parent was ¥25,757 million, representing 28.3% progress against the full-year forecast of ¥91,000 million. The operating margin was 16.2%, up 0.3 percentage points from 15.9% in the same period of the previous year. The improvement in margins despite revenue declining 2.3% year on year and operating profit declining 1.1% is important in assessing the profit level for the first half.

The comparable period, the six months ended September 2025, recorded revenue of ¥439,111 million and operating profit of ¥59,859 million. In FY2027-H1, it will be necessary to confirm whether revenue turns to year-on-year growth and whether operating profit exceeds the ¥59,859 million recorded in the previous first half. Q1 progress alone does not provide sufficient first-half results, including seasonality, to determine whether the full-year targets will be achieved.

At the next earnings announcement, the focus will be on whether the full-year forecasts of ¥957,000 million for revenue and ¥130,300 million for operating profit are maintained, and whether the 16.2% Q1 operating margin is maintained through the first half. In particular, consolidated results and segment profit will both be reviewed to determine whether the company is shifting from a pattern in which only profit is ahead while revenue remains below the previous year to profit growth accompanied by a recovery in revenue.