Q1 FY2027 Financial Summary (Japanese GAAP) (Consolidated)

Overview of results

For the first-quarter cumulative period of this fiscal year, net sales were 1,730,576 thousand yen, up 6.7% year over year, and operating income was 135,649 thousand yen, turning to positive. The IT & Consulting segment maintained solid utilization, with AI-centered service expansion. The Outsourcing segment saw some contract reductions, but efficiency improvements at the mother centers contributed to margin improvement. By segment, IT & Consulting generated net sales of 1,051,981 thousand yen and operating income of 287,560 thousand yen; Outsourcing generated net sales of 678,595 thousand yen and operating income of 128,576 thousand yen. Quarterly net income attributable to owners of the parent was 81,245 thousand yen.

Outlook and financial position

Total assets were 3,555,507 thousand yen, net assets 1,699,173 thousand yen, and the equity ratio stood at 46.7%. Cash and deposits increased, while accounts receivable and contract assets decreased, causing total assets to decline. There is no change to the dividend forecast or to the full-year consolidated earnings forecast from the previous release. With a growth strategy in the business domains, the company expects continued growth focusing on IT consulting and AI-related services.