Dentsu Soken (4812) Q3 2026 earnings summary

Executive summary

• Nine months ended Sep. 30, 2026: net sales ¥133,752 million (+10.4% YoY), operating profit ¥17,890 million (+9.9%) and parent-attributable profit ¥13,115 million (+11.9%).

• Higher sales across Financial Solutions, Business Solutions and Communication IT offset weaker consulting sales and higher expenses; nine-month operating margin held at 13.4%.

Financial highlights

• Nine-month gross profit was ¥47,997 million, up 9.6%; gross margin declined 0.3pt to 35.9%, while SG&A rose 9.4% to ¥30,107 million.

• Ordinary profit increased 9.9% to ¥18,559 million; comprehensive income rose 15.2% to ¥13,372 million.

• Q3 standalone sales rose 10.2% to ¥45,102 million, while operating profit fell 1.2% to ¥5,548 million and operating margin declined 1.4pt to 12.3%.

Outlook and guidance

• FY2026 forecast unchanged: sales ¥182,000 million (+10.4%), operating profit ¥25,500 million (+11.4%), ordinary profit ¥26,100 million (+10.5%), parent profit ¥18,000 million (+10.0%) and EPS ¥92.22.

• Forecast operating margin is 14.0%, up 0.1pt YoY; nine-month progress was 73.5% of sales and 70.2% of operating profit, versus 73.5% and 71.1% a year earlier.

• Q4 forecast: sales ¥48,247 million (+10.4%), operating profit ¥7,609 million (+15.1%) and operating margin 15.8%, up 0.7pt.

• FY2027 targets: sales ¥210 billion, operating profit ¥31.5 billion, operating margin 15.0%, ROE at least 18.0% and 6,000 employees.

• FY2026 year-end dividend forecast revised to zero in connection with the planned tender offer, conditional on successful completion.