CNS Co (4076) Q4 2025 earnings summary

Executive summary

• FY2025 revenue rose 5.2% to ¥7,004 million, driven by digital transformation and AI-related projects; operating income fell 10.4% to ¥555 million and net income fell 7.4% to ¥427 million.

• Revenue reached 92.6% of forecast; gross profit, operating income, ordinary income, and net income reached 93.0%, 84.0%, 86.5%, and 87.2%, respectively.

• Segment performance was mixed: business system integration exceeded sales and gross profit targets, while system infrastructure and consulting underperformed.

• New consulting and digital services were launched, the U-Way brand expanded, and the consulting talent base was strengthened.

Financial highlights

• Revenue was ¥7,004 million vs. ¥6,657 million YoY; gross profit was ¥1,706 million vs. ¥1,639 million.

• Operating income was ¥555 million vs. ¥619 million, ordinary income ¥585 million vs. ¥650 million, and net income attributable to owners of the parent ¥427 million vs. ¥461 million.

• Forecast attainment: revenue 92.6%, gross profit 93.0%, operating income 84.0%, ordinary income 86.5%, and net income 87.2%.

• Gross margin was 24.4% vs. 24.6% YoY; operating margin was 7.9% vs. 9.3%; SG&A was ¥1,151 million, or 16.4% of sales, vs. ¥1,019 million and 15.3%.

• Year-end cash and equivalents were ¥2,966 million, up ¥32 million YoY.

Outlook and guidance

• FY2026 revenue is forecast to rise 17.8% to ¥8,253 million; operating income is expected to be flat at ¥557 million and net income at ¥427 million.

• Planned investment in talent and business expansion is expected to constrain profit growth.

• Priorities include a divisional structure and expansion in ERP, AI, and global business.