ITOCHU Techno-Solutions (4739) Q1 2027 earnings summary

Executive summary

• Orders received surged over 50% year-over-year, with backlogs reaching a record high of nearly 600 billion yen in 1Q FY2026.

• Revenue and all income items achieved record 1Q highs, with operating income and net profit both sustaining over 20% YoY growth for the fourth consecutive year.

• Growth was driven by robust IT investment demand across industries, high-value-added businesses, and improved operational efficiencies.

Financial highlights

• Revenue rose to 198.4 billion yen, up 14.4% YoY; gross profit increased 13.1% to 50.2 billion yen.

• Operating income grew 26.7% YoY to 17.0 billion yen, with margin improving to 8.6%.

• Net profit attributable to shareholders climbed 27.1% YoY to 12.5 billion yen.

• Orders received jumped 54.3% YoY to 265.8 billion yen; backlogs up 25.4% to 599.1 billion yen.

Outlook and guidance

• FY2026 plan targets revenue of 890.0 billion yen (+12.1% YoY), operating income of 94.0 billion yen (+17.0%), and net profit of 65.0 billion yen (+7.5%).

• Focus on accelerating proprietary asset-based services, expanding AI-related businesses, and improving operational efficiency through AI.