ATLED (3969) Q3 2026 earnings summary

Executive summary

• Revenue for the third quarter/nine months ended December 31, 2025, increased by 4.7% year-over-year to ¥2,161 million, with operating income up 2.2% and net income up 2.4%.

• Growth was primarily driven by increased cloud sales, offsetting declines in package software sales.

• The business environment remains uncertain due to geopolitical risks and global economic concerns, but IT investment demand is robust.

Financial highlights

• Third quarter/nine-month revenue: ¥2,161 million (+4.7% YoY); operating income: ¥770 million (+2.2% YoY); net income: ¥512 million (+2.4% YoY).

• Ordinary profit for the period was ¥775 million, up 2.8% year-over-year.

• Gross profit margin remained strong, with gross profit at ¥1,390 million on sales of ¥2,161 million.

• EPS for the period was ¥68.49, compared to ¥66.91 in the prior year.

• Stock sales accounted for over 80% of total revenue, with high contract renewal rates (AgileWorks: 99.81%, Xpoint Cloud: 99.83%).

Outlook and guidance

• Full-year revenue is projected to reach ¥3,500 million or ¥3,120 million, with cloud sales as the main growth driver.

• Cloud sales ratio is expected to reach 56% in FY2026, marking a strategic shift toward SaaS.

• Operating income for the full year is forecast at ¥1,170 million, up over 10% year-over-year.

• Net profit for the full year is projected at ¥784 million, up 7.6%, with EPS of ¥104.71.

• Company plans to accelerate cloud migration ahead of the end of extended support for legacy products in March 2027.