ATLED (3969) Q2 2027 earnings summary

Executive summary

• AgileWorks sales recovery and cloud growth supported H1 FY2027 revenue of ¥1,649 million and operating profit of ¥556 million, both higher YoY; full-year forecasts call for continued growth.

• ARR rose ¥146 million from Q1 end to ¥2,789 million at Q2 end, reaching 106.9% of plan.

Financial highlights

• H1 net sales were ¥1,649 million, 106.9% of plan; full-year progress was 50.6%.

• H1 operating profit was ¥556 million, up 15.4% YoY and 109.2% of plan; full-year progress was 47.6%.

• Operating margin was 33.8%, 0.7 percentage points above plan.

• H1 ordinary profit was ¥573 million, up 17.7% YoY; net income was ¥376 million, up 16.5%.

• Basic EPS was ¥50.22 for H1, versus ¥43.12 in the prior-year period.

Outlook and guidance

• FY2027 net sales forecast is ¥3,260 million, up 12.3% YoY and a record-high level since listing.

• FY2027 operating profit is forecast at ¥1,170 million, up 11.4%; ordinary profit is forecast at ¥1,170 million, up 10.2%.

• FY2027 net income is forecast at ¥783 million, up 9.3%; basic EPS is forecast at ¥104.58.

• Cloud revenue is planned to grow 23.1% YoY and reach 63% of revenue, led by cloud migration and new customer wins.

• Personnel, depreciation and cloud infrastructure costs are expected to rise; cloud-service growth and infrastructure efficiency initiatives are intended to offset cost pressure.