iSoftStone Information Technology (301236) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 reached ¥8.12 billion, up 15.79% year-over-year, but net loss widened to ¥349.89 million from ¥197.69 million a year ago.

• Net loss attributable to shareholders, both including and excluding non-recurring items, increased significantly due to higher transformation investments and seasonal factors.

Financial highlights

• Operating income: ¥8.12 billion, up 15.79% year-over-year.

• Net loss attributable to shareholders: ¥349.89 million, compared to ¥197.69 million loss last year.

• Basic and diluted EPS: -¥0.35, down from -¥0.21 year-over-year.

• Net cash flow from operating activities: -¥3.44 billion, a further decline from -¥1.84 billion last year.

• Total assets at quarter-end: ¥32.70 billion, up 19.29% from year-end 2025.

• Shareholders’ equity: ¥13.35 billion, up 28.53% from year-end 2025.

Outlook and guidance

• Increased losses attributed to higher investment in transformation to adapt to AI-driven industry changes and seasonal holiday effects.