Fiscal Year Ending March 2026 Q3 Financial Summary [Japanese GAAP] (Consolidated)

Overview of Financial Results

The consolidated financial results for the third quarter of the fiscal year ending March 2026 showed net sales of 28.041 billion yen, a 4.4% increase year-over-year; operating income of 3.167 billion yen, a 2.2% decrease; ordinary income of 3.180 billion yen, a 1.9% decrease; and net income attributable to owners of the parent of 2.139 billion yen, a 1.6% increase. Although delays in large-scale cloud consulting projects and a shortage of engineers impacted net sales, growth in data management and AI infrastructure businesses along with the effects of consolidating subsidiaries led to an increase. Operating income declined due to increased office rental expenses accompanying business expansion despite reductions in outsourcing costs. The equity ratio remained healthy at 76.0%.

Segment Performance and Outlook

The business is divided into five segments: Cloud Solutions, Digital Solutions, Business Solutions, Platform & Operations Services, and Digital Learning. The Cloud Solutions segment saw a decline in sales due to delays in large projects, while the Digital Solutions segment increased sales driven by expansion in data analytics business. The Business Solutions segment experienced revenue growth supported by SAP system renewal and increased AI-related demand. The Platform & Operations Services segment recorded decreased sales, and although the Digital Learning segment increased sales, a decrease in certification training led to a decline in gross profit. The full-year earnings guidance remains unchanged, projecting net sales of 40 billion yen, a 10.1% increase year-over-year, and operating income of 5 billion yen, an 8.0% increase.