CNS Co (4076) Q2 2025 earnings summary

Executive summary

• Revenue for the six months ended November 30, 2024, increased 2.0% year-over-year to ¥3,364 million, driven by growth in digital transformation and big data businesses.

• Operating income declined 30.0% year-over-year to ¥226 million due to higher personnel costs and increased outsourcing fees.

• Net income attributable to shareholders fell 26.4% year-over-year to ¥162 million, reflecting increased labor costs and a rise in SG&A ratio.

• The company continues to invest in DX, AI, and consulting capabilities, while facing a tight IT labor market.

Financial highlights

• Revenue: ¥3,364 million (+2.0% YoY); Operating income: ¥226 million (−30.0% YoY); Ordinary income: ¥240 million (−28.7% YoY); Net income: ¥162 million (−26.4% YoY).

• EPS for the period was ¥55.82, down from ¥75.82 in the prior year.

• Gross margin declined as personnel expenses rose by approximately 11%, increasing labor cost ratio by 2.6 points YoY.

Outlook and guidance

• Full-year revenue forecast remains unchanged at ¥7,562 million (+13.6% YoY), with operating income projected at ¥660 million (+6.6% YoY) and net income at ¥489 million (+6.2% YoY).

• No revision to previously announced guidance; management states business progress is on track.