Financial Results Explanation for Fiscal Year Ending March 2026

Overview of FY2026 Performance

In FY2026, continued investment by key clients in technological development led to increased revenue of \u00a5137.686 billion (up 3.5% YoY) and operating income of \u00a519.93 billion (up 5.7% YoY). Net income attributable to owners of the parent reached \u00a515.051 billion, exceeding the announced forecast by \u00a511 million, mainly due to gains from real estate sales. The engineering solutions business achieved steady capacity utilization, resulting in revenue and profit growth, while the engineer placement business recorded a decrease in revenue and profit, but maintained a high operating profit margin of 35%.

FY2027 Business Outlook and Future Prospects

For FY2027, revenue is projected to increase to \u00a5140.8 billion (up 2.3% YoY), while operating income is expected to reach \u00a5205 billion (up 3.0% YoY), due to increased selling, general, and administrative expenses from strengthened recruitment. Net income is forecasted at \u00a513.9 billion, a decline attributed to the abolition of the productivity promotion tax system and the disappearance of one-off special gains. With a PBR exceeding 3 times, dividends will be paid in full and a reduction in dividend payout is expected aligned with the profit decline.