Cube System (2335) Q1 2027 earnings summary

Executive summary

• Demand for modernization, cloud migration, and cybersecurity continues to drive strong IT investment.

• Resource optimization and expansion into AI and new services are ongoing priorities.

• Net sales for the quarter ended June 30, 2026, were ¥4,552 million, up 0.1% year-over-year.

• Operating profit declined 11.8% year-over-year to ¥355 million, with margin down to 7.8%.

• Profit attributable to owners of parent rose 10.9% year-over-year to ¥222 million.

Financial highlights

• Gross profit for the quarter was ¥1,066 million, down from ¥1,120 million year-over-year.

• Ordinary profit decreased 13.8% year-over-year to ¥355 million.

• Comprehensive income for the quarter was ¥155 million, down from ¥285 million year-over-year.

• Total assets as of June 30, 2026, were ¥14,264 million, down from ¥14,901 million as of March 31, 2026.

• Gross margin was 23.4%, down from 24.6% in the prior year.

Outlook and guidance

• Full-year net sales outlook remains at ¥20,000 million, with 1Q progress at 22.8%.

• Operating profit forecast unchanged at ¥1,800 million, with 1Q progress at 19.7%.

• Profit attributable to owners of parent is forecast at ¥1,500 million, down 4.1% year-over-year.

• Full-year EPS is expected to be ¥98.83.

• Planned annual dividend for FY March 2027 is ¥46 per share, targeting a 50% payout ratio.