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 and are expected to drive future growth.

• Operational reforms and productivity improvements are being driven by AI tools, with a focus on sales efficiency and proposal quality.

• High-profile promotional activities, including partnerships with Shohei Ohtani and major sporting events, are being leveraged to boost brand value.

• Addressed unpaid wage issues in spot part-time jobs, leading industry response and gaining media and legal recognition.

Financial highlights

• Q3 FY'26/2 sales were ¥13,527 million, down 4.9% year-over-year; operating income was ¥2,644 million, down 21.4%; net income attributable to owners was ¥1,883 million, down 18.6%.

• For the nine months ended November 30, 2025, sales were ¥42,378 million (down 0.6%), operating income ¥8,085 million (down 25.7%), and net income ¥5,598 million (down 23.9%).

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

• DX Business sales fell 5.1% YoY in Q3; monthly-billed companies dropped 12.6%, but ARPU increased and stock sales ratio reached 79%.

• Gross profit for the nine months was ¥37,588 million, with a gross margin of 88.7%.

Outlook and guidance

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

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

• Dividend forecast for FY'26/2 is ¥95 per share, with a total return ratio of at least 62%.

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

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