Business Brain Showa-Ota (9658) Q4 2026 earnings summary

Executive summary

• Orders received rose 5.6% year-over-year to 42,646 million yen, and revenue increased 8.5% to 42,100 million yen, with business profit up 18.4% to 3,399 million yen.

• Consulting and System Development performed strongly, while BPO & Managed Services saw revenue growth but limited profit due to challenges in launching new projects.

• Upfront investments are being accelerated, especially in AI utilization, to adapt to rapid environmental changes and realize long-term growth targets.

• Profit attributable to owners of parent increased 21.0% year-over-year to 2,987 million yen.

• Orders backlog reached 13,545 million yen, up 4.2% year-over-year.

Financial highlights

• Revenue: 42,100 million yen (up 8.5% year-over-year).

• Business profit: 3,399 million yen (up 18.4% year-over-year).

• Profit attributable to owners of parent: 2,987 million yen (up 21.0% year-over-year).

• ROE improved to 10.0%, nearing the medium-term target of 12%.

• Cash and cash equivalents at year-end were 11,730 million yen, up 1,822 million yen year-over-year.

Outlook and guidance

• FY2026 revenue forecast: 43,600 million yen (+3.6% year-over-year); business profit forecast: 3,430 million yen (+0.9%).

• Profit is expected to decline slightly due to increased upfront investment, with a focus on AI and R&D.

• Annual dividend forecast to rise by 2 yen to 47 yen per share.

• Profit attributable to owners of parent forecast to decrease 4.6% to 2,848 million yen.