| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥738.6B | ¥675.0B | +9.4% |
| Operating Income / Operating Profit | ¥155.6B | ¥150.1B | +3.7% |
| Ordinary Income | ¥176.5B | ¥124.1B | +42.2% |
| Net Income / Net Profit | ¥116.1B | ¥87.5B | +32.8% |
| ROE | 10.1% | 6.7% | - |
2026 Q1 results landed at Revenue ¥738.6B (YoY +¥63.6B +9.4%), Operating Income ¥155.6B (YoY +¥5.5B +3.7%), Ordinary Income ¥176.5B (YoY +¥52.4B +42.2%), Net Income ¥116.1B (YoY +¥28.7B +32.8%). While topline growth outpaced Operating Income expansion, a material improvement in non-operating income pushed final profit higher. By region, AsiaPacific (Revenue +21.3%, profit +28.8%) and Europe (Revenue +22.6%, profit +32.9%) drove strong growth; Japan was essentially flat (+0.1%), while Americas showed revenue growth with profit decline (Revenue +3.6%, profit -19.7%). Operating margin was 21.1%, narrowing about 110bp YoY but remaining at a high level. Non-operating income of ¥21.1B, including ¥13.4B of foreign exchange gains, elevated Ordinary Income to about 13.4% above Operating Income. Progress against Full Year guidance is: Revenue 24.5%, Operating Income 27.6%, Ordinary Income 32.0%, Net Income 31.7%, modestly ahead of a standard Q1 cadence (25%).
【Revenue】 Revenue ¥738.6B (YoY +9.4%) was driven by double-digit growth in AsiaPacific (share 42.9%, +21.3%) and Europe (27.1%, +22.6%). AsiaPacific was ¥316.97B, the largest segment; Europe rose to ¥200.07B from ¥163.18B prior year. Japan (30.0%, +0.1%) was ¥221.24B, essentially flat, and Americas (24.6%, +3.6%) was ¥181.56B with low growth. Gross margin was 77.4% (Gross Profit ¥571.6B), an improvement of about 170bp from 75.7% last year, reflecting a high-margin, subscription-led model. Improvements in regional mix (shift to higher-growth regions) and a favorable FX tailwind supported revenue growth.
【Profitability / P&L】 Operating Income ¥155.6B (+3.7%) lagged revenue growth, driven by an increase in SG&A to ¥416.1B (56.3% of sales). SG&A rose by about ¥55B from ¥360.8B (53.4% of sales) in the prior year, outpacing revenue growth of +9.4% and worsening operating leverage. Operating margin was 21.1%, down about 110bp from 22.2% a year earlier. Ordinary Income ¥176.5B (+42.2%) materially outperformed the operating line, aided by non-operating income of ¥21.1B including ¥13.4B FX gains (prior year non-operating items were net expense ¥34.4B including FX losses ¥28.9B). The swing in non-operating items of roughly ¥55B was the main driver of the increase in Ordinary Income. Profit before tax was ¥177.4B (+44.9%); after deducting income taxes of ¥61.3B (effective tax rate 34.6%) and adjustments attributable to non-controlling interests, Net Income was ¥116.1B (+32.8%). Extraordinary items were immaterial (Extraordinary Gains ¥0.9B, Extraordinary Losses ¥1.6B). In summary, the pattern was modest operating profit growth with strong final profit expansion driven by non-operating improvements.
Japan (Revenue ¥221.24B, Operating Income ¥44.74B) stagnated with Revenue +0.1%, Operating Income down -6.2%, margin 20.2% (prior 21.6%). Americas (Revenue ¥181.56B, Operating Income ¥26.59B) delivered Revenue +3.6% but Operating Income -19.7%, margin 14.6% (prior 18.9%) — a significant decline. Europe (Revenue ¥200.07B, Operating Income ¥39.26B) achieved Revenue +22.6% and Operating Income +32.9%, margin improved to 19.6% (prior 18.1%). AsiaPacific (Revenue ¥316.97B, Operating Income ¥50.10B) posted Revenue +21.3% and Operating Income +28.8%, margin 15.8% (prior 14.9%). Contribution to consolidated Operating Income: AsiaPacific 32.2%, Japan 28.8%, Europe 25.2%, Americas 17.1%. Intersegment adjustments were -¥5.1B (prior +¥0.8B), suggesting impacts from changes in transaction terms. The regional portfolio is shifting toward higher-growth AsiaPacific and Europe, while mature markets Japan and Americas are lagging.
【Profitability】Operating margin 21.1% fell about 110bp from 22.2% but remains high; gross margin 77.4% (prior 75.7%) improved, sustaining a high-margin model. ROE 10.1% is decomposed as Net Profit Margin 15.7% × Asset Turnover 0.185 × Leverage 3.49x, with Net Profit Margin improvement driving ROE above prior-year levels. 【Cash Quality】Operating Cash Flow (OCF) ¥295.8B is 2.55x Net Income ¥116.1B, and OCF/EBITDA is 1.34x, indicating strong cash backing of profits. Accrual ratio -4.5% (as % of Net Income) signals high earnings quality. Days Sales Outstanding (DSO) roughly equates to ~278 days given Accounts Receivable ¥560.9B divided by Revenue, which signals prolonged collections; however, YoY AR reduction of ¥201.9B (-26.5%) shows marked improvement in collections. 【Investment Efficiency】Total Asset Turnover 0.185x (annualized 0.74x) is low due to an asset-heavy structure. ROIC estimate: Operating Income ¥155.6B ÷ Invested Capital (Equity ¥1,145B + Interest-bearing debt ¥0) ≒ 13.6%, indicating strong returns. 【Financial Health】Equity Ratio 28.7% (prior 31.1%) raises questions on capital quality; D/E ratio 2.49x is high leverage and a point of concern. Current ratio 114.3% and Quick ratio 110.6% provide minimum safety. Cash & deposits ¥2,153B (54.0% of total assets) are ample, supporting short-term resilience.
Operating Cash Flow ¥295.8B (YoY +57.4%) exceeded Operating Income ¥155.6B plus Depreciation & Amortization ¥65.7B, reflecting contributions from working capital improvements. Subtotal before working capital movements was ¥347.1B (prior ¥233.5B); decreases in Accounts Receivable of ¥223.6B (prior ¥170.4B) were a positive contributor. Inventory increase -¥0.2B and decrease in Accounts Payable -¥1.3B were minor. After income tax payments -¥58.7B and others, final OCF was ¥295.8B. Investing Cash Flow was -¥192.4B, with main items CapEx -¥3.2B and Intangible Asset investment -¥58.7B, totaling ¥61.9B of growth investment. Free Cash Flow was ¥103.4B (OCF + Investing CF), consistent with draft analysis. Financing Cash Flow was -¥282.8B, driven by dividend payments -¥234.4B and share buybacks -¥50.0B; proceeds from disposal of treasury stock ¥1.6B and payments to non-controlling interests ¥22.8B were offsets. Free Cash Flow ¥103.4B was lower than total shareholder returns ¥284.4B (dividends + buybacks), and the gap of about ¥181B was funded by cash drawdown. Cash decreased by -¥153.3B (after FX impact +¥26.1B), leaving ending cash ¥2,151B; no immediate liquidity concern.
Recurring earnings are supported by a high gross margin of 77.4% and a subscription base, providing stability and sustainable profit generation at the operating level. However, the substantial YoY increase in Net Income was mainly due to improvements in non-operating items: non-operating income ¥21.1B (2.9% of Revenue), including FX gains ¥13.4B. The prior year had FX losses ¥28.9B and net non-operating expense ¥34.4B, so the swing of ~¥55B in non-operating items drove the +42.2% increase in Ordinary Income. FX effects are likely temporary, so sustainability is limited if normalized over the full year. Extraordinary items (e.g., valuation losses on available-for-sale securities ¥1.6B) were minor. OCF at 2.55x Net Income and AR reduction of ¥223.6B strengthened cash generation from working capital. Comprehensive Income ¥123.0B exceeded Net Income ¥116.1B, with FX translation adjustment +¥9.0B being a positive contributor. The gap between Ordinary Income ¥176.5B and Net Income ¥116.1B (~34%) is primarily due to tax burden (effective tax rate 34.6%), and does not indicate an abnormal divergence.
Full Year guidance (Revenue ¥3,015B, Operating Income ¥564B, Ordinary Income ¥551B, Net Income ¥366B) shows Q1 progress at Revenue 24.5%, Operating Income 27.6%, Ordinary Income 32.0%, Net Income 31.7%. Operating and bottom-line results are somewhat front-loaded relative to a standard Q1 cadence of 25%, but deviations are within ±7pp and not materially divergent. Full Year Operating Income guidance implies a YoY decline of -2.4%, contrasting with Q1 Operating Income +3.7%. This suggests a conservative stance incorporating SG&A increases in H2, normalization of FX benefits, and slower growth. Ordinary Income is forecast up +2.1% for the full year, while Q1 showed +42.2%, likely driven by temporary FX tailwinds. Net Income progress of 31.7% is above standard but expected to converge to guidance due to higher tax burden and normalization of non-operating items in H2. No guidance revisions were announced this quarter; the company maintains a cautious posture.
Dividend guidance for FY-end is undecided and not disclosed. Interim dividend payments during the period totaled ¥234.4B, presumed to reflect timing differences based on prior-year earnings. A simple payout ratio against Q1 Net Income ¥116.1B would be about 202% (anomalous), but quarterly payout ratios are only indicative and full-year profit basis is appropriate for evaluation. Share buybacks of ¥50.0B were executed, bringing total shareholder returns to ¥284.4B. Returns materially exceeded Free Cash Flow ¥103.4B, with the shortfall (~¥181B) financed by drawing down ample cash reserves (¥2,153B). While cash levels remain high and short-term sustainability is not a concern, adjustments toward FCF-aligned return levels would be desirable over the full year. Treasury shares outstanding after buyback/disposal are 111.3 million shares, representing 7.9% of the issued share count of 140.9 million shares.
High leverage and liquidity risk: D/E ratio 2.49x is well above industry average and signals reduced financial flexibility. Current ratio 114.3% is only at minimum safety; seasonal working capital swings or large investments could pressure short-term liquidity. Cash ¥2,153B (69.3% of current assets) provides a cushion, but continued shareholder returns exceeding FCF could accelerate cash depletion.
FX volatility and non-operating earnings volatility: The large YoY increase in Ordinary Income (+42.2%) was mainly driven by FX gains ¥13.4B and improvements in non-operating items, limiting sustainability. Prior-year FX losses ¥28.9B produced net non-operating expense ¥34.4B, demonstrating that swings of about ¥55B can materially affect Net Income. Variability in full-year FX levels and global interest rate movements could reduce predictability of Ordinary and Net Income.
Regional mix and SG&A efficiency: Low growth in Japan and Americas (+0.1% and +3.6%) with profit declines (Japan -6.2%, Americas -19.7%) constrain consolidated Operating Income growth. SG&A ¥416.1B (56.3% of sales) rose about ¥55B YoY, outpacing revenue growth and worsening operating leverage. Even in high-growth regions, front-loaded investment or intensified price competition could prolong SG&A pressure and depress sustainable operating margins.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 21.1% | 6.2% (4.2%–17.2%) | +14.9pt |
| Net Profit Margin | 15.7% | 2.8% (0.6%–11.9%) | +12.9pt |
Profitability metrics are clearly top-tier within the industry; Operating and Net Profit margins materially exceed medians.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 9.4% | 20.9% (12.5%–25.8%) | -11.5pt |
Growth lags the industry median, indicating relatively slower expansion within the IT & Communications sector.
※Source: Company compilation
Structural shift in regional portfolio: High growth in AsiaPacific and Europe (+21–23%) is driving consolidated revenue growth and improving regional mix. The combination of stagnating Japan/Americas and expanding high-growth regions underscores reliance on deepening presence and cross-sell execution in those markets for medium-term growth. AsiaPacific is the largest contributor to Operating Income (32.2%), evidencing a shift in business portfolio weight.
Non-operating factors and quality of earnings: The large increases in Ordinary Income (+42.2%) and Net Income (+32.8%) were primarily due to non-operating improvements including FX gains ¥13.4B, far outpacing operating profit growth of +3.7%. FX effects are likely transitory; sustainable profit growth depends on improving operating leverage. Conversely, OCF at 2.55x Net Income demonstrates strong cash backing of earnings, and AR compression improved working capital and cash generation, supporting earnings quality on the cash side.
Balance between shareholder returns and capital allocation: Total returns ¥284.4B (Dividends ¥234.4B + Buybacks ¥50.0B) exceeded FCF ¥103.4B and were funded from cash reserves. While cash is ample (¥2,153B), continued returns beyond FCF under a D/E 2.49x leverage profile could erode financial flexibility. There is room to adjust returns toward levels consistent with FCF across the full year; dividend policy (FY-end undecided) and pace of buybacks merit monitoring.
This report was auto-generated by AI analyzing XBRL financial filing data. It is not a recommendation to invest in any specific security. Industry benchmarks are compiled by the firm from public filings as reference information. Investment decisions should be made at your own responsibility and, where necessary, after consulting a professional advisor.