Cube System (2335) Q2 2026 earnings summary

Executive summary

• Net sales for 1H FY March 2026 reached ¥9,142 million, up 1.3% year-over-year, driven by strong demand for DX and cloud migration projects.

• Operating profit rose 37.0% to ¥730 million, with improved margins and reduced personnel expenses due to a change in retirement benefit discount rates.

• Ordinary profit increased 39.7% year-over-year to ¥738 million.

• Profit attributable to owners of parent declined 16.2% to ¥555 million, with earnings per share falling to ¥36.78 from ¥44.01.

• The Sler and End-User Businesses remained stable, while the Service Providing Business expanded.

Financial highlights

• Gross margin improved to 23.8% from 20.7% in the prior year.

• Gross profit increased to ¥2,178 million from ¥1,869 million year-over-year, while SG&A expenses rose to ¥1,447 million.

• Extraordinary income declined to ¥139 million from ¥411 million, mainly due to a prior-year gain on revision of retirement benefit plan.

• Comprehensive income dropped to ¥503 million from ¥839 million year-over-year.

• Cash and cash equivalents at end of period rose to ¥6,518 million.

Outlook and guidance

• Full-year net sales forecast remains at ¥19,500 million, with a 46.9% progress rate at 1H.

• Operating profit forecast is ¥1,750 million (41.8% progress), and profit attributable to owners of parent is ¥1,220 million (45.5% progress).

• Annual dividend forecast is ¥42.00 per share.

• IT investment demand expected to stay strong, but uncertainty remains due to policy and market fluctuations.