ITOCHU Techno-Solutions (4739) Q1 2026 earnings summary

Executive summary

• Achieved record highs in revenue and all income items for 1Q FY2025, with income items growing over 20% year-over-year.

• Orders received remained near previous record highs, and backlogs set a new 1Q record.

• IT investments remained strong across industries, driving 16 consecutive quarters of YoY revenue growth.

Financial highlights

• Revenue rose to ¥173.5 billion, up 11.2% year-over-year.

• Gross profit increased 20.2% YoY to ¥44.4 billion, with gross profit margin improving by 1.9 percentage points to 25.6%.

• Operating income grew 25.5% YoY to ¥13.4 billion, with margin up 0.9 points to 7.7%.

• Net profit attributable to shareholders rose 26.6% YoY to ¥9.8 billion.

• Orders received were ¥172.2 billion, nearly flat YoY, while backlogs increased 3.4% to ¥477.7 billion.

Outlook and guidance

• FY2025 revenue is projected at ¥825.0 billion, up 13.3% from FY2024.

• Operating income is forecast to rise 14.7% to ¥77.5 billion, with net profit expected to reach ¥55.0 billion.

• Focus on expanding cloud native, security, data & analytics, and advanced AI businesses.