CNS Co (4076) Q2 2026 earnings summary

Executive summary

• Q2 FY May 2026 revenue rose 11.6% YoY to ¥3,753 million; operating profit increased 55.0% to ¥350 million, and net income attributable to parent shareholders rose 68.7% to ¥273 million.

• All three segments grew sales and gross profit, supported by robust IT demand, DX/AI projects, stronger unit prices, and a higher share of high-margin projects.

• Strategic partnerships expanded in DX/AI and ERP, and the headquarters relocation supported collaboration and business growth.

Financial highlights

• Revenue was ¥3,753 million, up ¥389 million YoY; gross profit rose 18.6% to ¥952 million.

• Operating profit reached ¥350 million (+55.0%); ordinary profit was ¥360 million (+49.7%); net income attributable to parent shareholders was ¥273 million (+68.7%).

• Gross margin improved to 25.4% from 23.9%, while higher gross profit absorbed increased SG&A, including office relocation costs.

• Operating profit increased ¥124 million to ¥350 million, supported by a stronger gross profit contribution and higher-margin project mix.

Outlook and guidance

• FY May 2026 revenue forecast remains ¥8,253 million (+17.8% YoY); operating profit guidance was raised 18.1% versus the initial forecast to ¥658 million.

• Revised full-year forecasts include gross profit of ¥1,940 million, ordinary profit of ¥675 million, and net income of ¥483 million.

• Revised EPS forecast is ¥166.21; FY operating margin is projected at 8.0%, versus 7.9% in FY May 2025.

• Stage 2 targets are ¥10 billion revenue and 10.0% operating margin by FY May 2027; Stage 3 targets are ¥15 billion and 12.0% by FY May 2030.