Broadleaf (3673) Q1 2026 earnings summary

Executive summary

• Achieved record first-quarter results since FY2021, with revenue for 1Q FY2026 rising 15.9% year-over-year to ¥5,516 million, driven by strong cloud services growth and robust demand for digital transformation and operational efficiency among customers.

• Operating profit surged 141.8% year-over-year to ¥853 million, with profit attributable to owners up 175.1% to ¥540 million.

• Cloud migration initiatives progressed steadily, with enhanced support for major customers and a focus on high-value-added services.

• Cloud services sales increased 36.5% year-over-year, offsetting a 16.1% decline in packaged system sales as customers transition to cloud solutions.

• Business environment remains favorable, though potential risks from Middle East instability and broader geopolitical tensions are being monitored.

Financial highlights

• Revenue for 1Q FY2026 was ¥5,516 million, up 15.9% year-over-year; operating profit rose 141.8% to ¥853 million.

• Gross profit increased 20.2% year-over-year to ¥3,749 million; net profit attributable to owners was ¥540 million, up 175.1%.

• Basic earnings per share increased to ¥5.98 from ¥2.19 year-over-year.

• Recurring revenue grew 16.0% year-over-year, maintaining a high recurring revenue ratio of 72.4%.

• Cloud services revenue surged 36.5% year-over-year, while packaged system revenue declined 16.1%.

Outlook and guidance

• Full-year FY2026 revenue forecast remains at ¥23,500 million, up 12.9% year-over-year; operating profit expected to reach a record ¥4,800 million.

• Only cost structure was revised in forecasts; revenue and profit targets unchanged.

• Dividend forecast for FY2026 is ¥15.00 per share, with a payout ratio of 42.4%.

• Medium-term targets project revenue of ¥32,000 million and operating profit of ¥13,000 million by FY2028.

• Interim (2Q cumulative) guidance: revenue of ¥10,400 million (+5.9% YoY), operating profit of ¥1,100 million (+42.6% YoY).