DIP Corporation (2379) Q1 2026 earnings summary

Executive summary

• Q1 sales increased by 3.3% year-over-year to ¥15,786 million, driven by growth in personnel recruiting and DX businesses, while operating income declined 16.1% due to upfront investments in Spot Baitoru, AI initiatives, and system development.

• Market share in media services expanded, especially in logistics and service sectors, with continued focus on user-first labor solutions and digital transformation, including generative AI-powered job search and communication tools.

• Excluding upfront investments, operating profit would have increased by 10% year-over-year, reflecting steady growth in existing businesses.

• Net income attributable to owners of parent was ¥2,294 million, down 18.2% year-over-year.

Financial highlights

• Q1 sales: ¥15,786 million (+3.3% YoY); operating income: ¥3,377 million (-16.1% YoY); net income: ¥2,294 million (-18.2% YoY).

• Gross profit for the quarter was ¥13,746 million, with a gross margin of approximately 87%.

• Personnel expense ratio decreased by 2.8 percentage points due to a 5% reduction in employees and higher productivity.

• Advertising and promotion expense ratio increased by 6.8 percentage points due to Spot Baitoru promotions.

• Basic earnings per share for the quarter was ¥43.86, compared to ¥51.44 a year earlier.

Outlook and guidance

• Full-year FY'26/2 sales forecast unchanged at ¥60,000 million (+6.4% YoY); operating income forecast at ¥12,000 million (-10.5% YoY); net income forecast at ¥8,000 million (-10.6% YoY).

• FY'27/2 targets: 8% sales growth and operating income exceeding ¥17 billion, driven by monetization of upfront investments.

• Dividend forecast maintained at ¥95 per share, with a payout ratio of 62% and a total return ratio of at least 62%.

• No changes have been made to the previously announced forecast.