ATLED (3969) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 FY2026 rose 8.4% year-over-year to ¥695 million, with cloud services up 31.2% and package sales down 12.2%.

• Operating income increased 4.4% to ¥223 million, and net income grew 1.8% to ¥142 million, absorbing higher costs through increased sales.

• Cloud demand continues to drive user growth and a shift from package to cloud offerings.

• The business environment remains uncertain due to global economic risks, but IT investment demand is robust, especially for workflow and DX solutions.

Financial highlights

• Gross profit for Q1 FY2026 was ¥451.9 million, up from ¥401.9 million in the prior year.

• Stock revenue ratio remains high, exceeding 80% of total sales, supporting stable business growth.

• Contract renewal rates for main products are above 99.8%.

• Operating margin for Q1 FY2026 was 32.1%.

• EPS for Q1 FY2026 was ¥19.02, compared to ¥18.68 in the prior year.

Outlook and guidance

• FY2026 targets record-high revenue, driven by cloud sales, with a planned 12.8% increase in cloud revenue and a 10.6% rise in operating profit.

• Full-year FY2026 revenue is forecast at ¥3,120 million (12.8% growth year-over-year), with net profit projected at ¥784 million (7.6% growth).

• Cloud ratio is expected to reach 56%, marking a transition to a SaaS-focused business.

• Interim and year-end dividends are planned at ¥17.00 per share each, totaling ¥34.00 for the year.

• Cost increases from hiring and software amortization are anticipated but will be offset by higher cloud sales.