Nomura Research Institute (4307) Q2 2026 earnings summary

Executive summary

• Revenue and profit grew year-over-year, driven by robust domestic business, especially in Financial IT Solutions and IT Platform Services, while overseas business saw a decline in orders and profitability.

• AI-related project orders surged 80% YoY, with full-scale implementation of an AI-based development platform planned for the second half.

• The group continued to execute its Medium-term Management Plan (MTP2025), focusing on core business, digital transformation, global expansion, and management enhancements.

• Social DX use cases and digital workplace services expanded, broadening customer segments and service domains.

Financial highlights

• 1H FY Mar. 2026 revenue rose 5.4% YoY to ¥397,065 million; operating profit up 20.1% to ¥78,799 million; operating margin improved to 19.8%.

• Profit attributable to owners increased 17.3% YoY to ¥53,565 million; basic EPS rose to ¥93.53.

• Gross profit increased 9.9% to ¥148,017 million, with gross profit margin at 37.3% in 1H, up 1.5 points YoY.

• Free cash flow for 1H was ¥18,928 million, down 42.1% YoY.

• Total assets as of September 30, 2025, were ¥994,514 million, up 7.1% from March 31, 2025.

Outlook and guidance

• FY Mar. 2026 revenue forecast unchanged at ¥810 billion (+5.9% YoY); operating profit forecast at ¥150 billion (+11.2% YoY); profit attributable to owners forecast at ¥104 billion (+10.9% YoY).

• Annual dividend per share forecast raised to ¥74.00, with a payout ratio of 40.8%.

• Domestic business expected to continue expanding in project volume and profitability; structural reforms planned for overseas business in 2H.