Creo (9698) Q1 2027 earnings summary

Executive summary

• Revenue for the first quarter was ¥3,333 million, a 0.3% decrease year-over-year, while operating profit rose 60.7% to ¥132 million and net profit attributable to shareholders increased 59.1% to ¥84 million.

• The IT services market remains robust, driven by digitalization and AI adoption, especially in HR-related solutions.

• The company is focusing on productivity reforms using AI and expanding HR service offerings.

Financial highlights

• Operating profit increased by ¥49 million year-over-year, and net profit by ¥31 million.

• Gross margin improved as operating profit outpaced the slight revenue decline.

• EPS for the quarter was ¥10.99, up from ¥6.90 in the prior year.

• Total assets at quarter-end were ¥10,029 million, down from ¥10,554 million at the previous year-end.

• Net assets decreased to ¥7,312 million from ¥7,742 million.

Outlook and guidance

• Full-year revenue is forecast at ¥15,100 million, up 3.6% year-over-year, with operating profit of ¥1,240 million and net profit of ¥820 million.

• No changes have been made to previously announced guidance.

• Dividend forecast is ¥56 per share for the year.