CMC Corporation (2185) Q2 2026 earnings summary

Executive summary

• Net sales for the first half of FY2026 rose 14.6% year-over-year to ¥10,235 million, driven by strong growth in the Manuals segment and resilient digital transformation initiatives in the Knowledge segment, despite global headwinds.

• Operating profit increased 56.3% year-over-year to ¥1,824 million, supported by QCD initiatives and favorable foreign exchange impacts.

• Net income attributable to shareholders rose 44.5% year-over-year to ¥1,416 million.

• The company continues to invest in digital transformation, AI-driven business models, and customer experience enhancements.

• Renovated Tongaru Labo facility to enhance digital technology experiences and support business transformation for clients.

Financial highlights

• Net sales reached ¥10,235 million, up 14.6% year-over-year and 2.4% above forecast.

• Operating profit was ¥1,824 million, 30.4% above forecast.

• Ordinary profit grew 40.6% year-over-year to ¥2,085 million; profit attributable to owners of parent up 44.5% to ¥1,416 million.

• EPS improved from ¥74.28 to ¥109.61 year-over-year.

• Gross profit margin expanded to 38.9%, and operating profit margin improved to 17.8% from 13.1% year-over-year.

Outlook and guidance

• Full-year guidance remains unchanged: net sales forecast at ¥20,000 million (+9.6% YoY), operating profit at ¥3,000 million (+11.3% YoY), and EPS at ¥169.97.

• ROE expected at 9.8% for FY2026, slightly down from 10.2% in FY2025.

• Net income for the full year is projected at ¥2,200 million (+2.3% YoY).

• No changes have been made to previously announced guidance.