Nomura Research Institute (4307) Q1 2026 earnings summary

Executive summary

• Revenue grew 4.1% year-over-year to JPY 195,770 million in 1Q FY March 2026, led by Financial IT and IT Infrastructure, while Industrial IT saw a decline due to weak overseas business and FX effects.

• Operating profit increased 14.1% year-over-year to JPY 37,246 million, with operating margin rising to 19.0%.

• Profit attributable to owners of parent grew 17.3% year-over-year to JPY 26,000 million; basic EPS was ¥45.43.

• Progress toward full-year forecasts is on track, supported by robust demand for Consulting and IT Solutions.

• The company continues to execute its Medium-term Management Plan, focusing on core business, DX, global expansion, and management enhancements.

Financial highlights

• Operating profit increased to JPY 37,246 million, up 14.1% year-over-year; profit before tax rose 18.5% to JPY 37,978 million.

• Gross profit increased 5.8% year-over-year to ¥71,571 million; gross profit margin improved to 36.6% from 36.0%.

• Free cash flow rose 57.8% year-over-year to JPY 31,041 million.

• Cash and cash equivalents at period end increased 15.9% year-over-year to JPY 176,277 million.

• EBITDA margin improved to 25.3%, up 1.7 points year-over-year.

Outlook and guidance

• FY March 2026 revenue forecast remains at JPY 810.0 billion, up 5.9% year-over-year; operating profit forecast at JPY 150.0 billion, up 11.2%.

• EPS expected to rise 11.1% to ¥181.78; annual dividend per share forecast at ¥74.00, payout ratio 40.8%.

• No revisions to segment revenue forecasts; Consulting expected to grow 12.7%, Industrial IT Solutions 8.4%.

• Profit attributable to owners of parent forecast at ¥104,000 million, up 10.9%.