DAIKO XTECH (8023) Q3 2026 earnings summary

Executive summary

• Nine-month revenue edged up 0.3% to ¥30,569 million as software services and recurring business offset lower prior-year large PC sales and restrained hardware and supplies sales.

• Gross profit increased 3.8% to ¥7,504 million, supported by higher-margin software solutions.

• Operating profit fell 22.2% to ¥864 million amid higher SG&A, personnel investment, unprofitable-project costs and rebranding expenses.

• Strategy centers on expanding high-value software and recurring businesses, digital transformation and modernization.

Financial highlights

• Nine-month revenue was ¥30,569 million (+0.3% YoY); gross profit was ¥7,504 million (+3.8%).

• Operating profit was ¥864 million (-22.2%), ordinary profit ¥938 million (-21.1%), and net income attributable to shareholders ¥574 million (-21.9%).

• Orders totaled ¥30,399 million (-2.8% YoY); order backlog was ¥9,514 million (-12.7%). Comparisons reflect changes to stock-business aggregation methods.

• SG&A rose 8.6% to ¥6,639 million, exceeding the ¥277 million increase in gross profit.

• EPS was ¥45.40 versus ¥56.52; comprehensive income rose 57.3% to ¥1,143 million.

Outlook and guidance

• FY26 targets: orders ¥43,200 million, revenue ¥43,000 million and gross profit ¥11,400 million; nine-month progress was 70.4%, 71.1% and 65.8%, respectively.

• Full-year operating profit forecast is ¥2,450 million and net income forecast ¥1,650 million; guidance was unchanged, with Q4 expected to be seasonally strong.

• Revenue target progress remained on track despite a Q1 delay; gross profit exceeded the prior-year quarter in Q2 and Q3, with recurring business supporting orders and backlog.

• CANVAS TWO targets FY28 revenue of ¥45,000 million and 6.7% operating margin; CANVAS THREE targets FY31 revenue of ¥50,000 million and 8.0% operating margin.