Cube System (2335) Q3 2026 earnings summary

Executive summary

• Net sales for 3Q FY March 2026 reached ¥13,759 million, up 0.8% year-over-year, driven by strong demand for DX promotion and cloud migration, with operating profit up 27.7% to ¥1,136 million and ordinary profit up 29.7% to ¥1,159 million.

• Profit attributable to owners of parent increased 19.0% year-over-year to ¥1,077 million, with EPS at ¥71.25, up from ¥60.13 in the prior period.

• The Sler Business remained stable, End-User Business saw a slight decrease, and Service-Providing Business increased significantly.

• Orders received and order backlog increased by 1.4% and 5.0% year-over-year, respectively, reflecting steady demand for system development.

Financial highlights

• Net sales: ¥13,759 million (+0.8% YoY); Operating profit: ¥1,136 million (+27.7% YoY); Ordinary profit: ¥1,159 million (+29.7% YoY); Profit attributable to owners of parent: ¥1,077 million (+19.0% YoY).

• Operating margin improved to 8.3% from 6.5% year-over-year.

• Gross margin increased to 23.7% from 21.1% year-over-year; gross profit rose to ¥3,261 million from ¥2,884 million, and cost of sales decreased to ¥10,497 million.

• Earnings per share for 3Q FY March 2026 was ¥71.25.

• Extraordinary income totaled ¥496 million, mainly from gains on revision of retirement benefit plan and sale of investment securities.

Outlook and guidance

• Full-year forecast remains unchanged: net sales ¥19,500 million, operating profit ¥1,750 million, ordinary profit ¥1,760 million, profit attributable to owners of parent ¥1,220 million.

• Progress rates toward full-year forecasts: net sales 70.6%, operating profit 65.0%, ordinary profit 65.9%, profit attributable to owners of parent 88.3%.

• Full-year EPS forecasted at ¥81.03.

• Dividend forecast raised to ¥42.00 per share for the year ending March 31, 2026, with a target payout ratio of 50%.