Human Technologies (5621) Q2 2027 earnings summary

Executive summary

• H1 FY2027 revenue rose 13.3% YoY to ¥4,094m and operating income rose 14.9% to ¥834m; growth reflected customer-base expansion and service enhancements.

• Customer and paid-ID growth moderated due to prior-year billing changes and removal of unused IDs, not cancellations.

• Progress reached 47.8% of revenue guidance and 54.3% of operating-income guidance.

Financial highlights

• H1 ordinary income was ¥845m, up 15.6% YoY; net income was ¥600m, up 12.9%.

• KOT SaaS revenue rose 12.3% to ¥3,651m; excluding the prior-year billing-model change effect, growth was 19.4%.

• Other revenue increased 22.4% to ¥442m, supported by steady time-clock terminal sales.

• Personnel expense rose 7.9% to ¥1,303m, but fell to 31.8% of revenue from 33.4%; outsourcing expense rose 29.9% to ¥784m.

• Gross profit was ¥2,585m versus ¥2,409m a year earlier; H1 EPS was ¥62.62.

Outlook and guidance

• FY2027 guidance is unchanged: revenue ¥8,569m (+14.3%), operating income ¥1,537m (+12.2%), ordinary income ¥1,547m and net income ¥1,113m.

• Guidance includes ¥290m of strategic investment in AI and security to improve service value and support sustainable growth.

• The ~30% operating-margin target shifted from FY2028 to FY2030 as strategic investment is prioritized; the target direction is unchanged.

• FY2027 EPS is forecast at ¥116.11; annual dividend forecast is ¥35 per share, including no interim dividend.