DIP Corporation (2379) Q3 2026 earnings summary

Executive summary

• Sales and profits declined year-over-year in Q3 FY'26/2 due to a shift to a solutions-based organization, increased client transition tasks, and sluggish recruiting services sales, but high single-digit sales growth is targeted for Q4.

• Investments in Spot Baitoru, AI-driven services, head office expansion, and new graduate recruitment contributed to higher costs, while operational reforms and productivity improvements are being driven by AI tools.

• Compliance initiatives, including addressing unpaid wage issues and introducing compensation for last-minute job cancellations, have led industry response and positive media coverage.

• High-profile marketing campaigns, including those featuring Shohei Ohtani and major sponsorships, generated significant ad value and engagement.

• Expansion of incentive plans for directors and employees, including restricted stock and ESOP trust schemes.

Financial highlights

• Q3 FY'26/2 sales were ¥13,527 million, down 4.9% year-over-year; nine-month sales were ¥42,378 million, down 0.6% year-over-year.

• Operating profit for Q3 was ¥2,644 million, down 21.4% year-over-year; nine-month operating income was ¥8,085 million, down 25.7%.

• Media Services sales decreased 5.2% YoY; number of contracted companies fell 7.5% YoY, but contract unit price rose 2.4% YoY.

• DX Business sales fell 5.1% YoY in Q3; nine-month sales were ¥5,021 million (down 0.3%), with segment profit up 15.3%.

• Cash and cash equivalents at period end were ¥7,873 million, down from ¥15,156 million at the previous year-end.

Outlook and guidance

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

• FY'27/2 targets: 8% sales growth, operating income to exceed ¥17 billion, driven by monetization of Spot Baitoru and AI products.

• No changes have been made to previously announced forecasts.

• Year-end dividend forecast maintained at ¥95 per share, with a total return ratio of at least 62%.

• Targeting high single-digit sales growth in Q4 as sales activity volume and headcount recover.