Nomura Research Institute (4307) Q2 2027 earnings summary

Executive summary

• H1 revenue reached ¥429,906m (+8.3% YoY) and operating profit ¥88,272m (+12.0%), both first-half records; profit attributable to owners of parent rose 12.0% to ¥60,014m.

• Strong Financial IT Solutions and IT Platform Services performance, alongside AI-driven production innovation, supported growth.

• FY2027 forecasts were raised to revenue of ¥870bn and operating profit of ¥180bn; MTP2028 prioritizes AI transformation, digital security and social co-creation.

Financial highlights

• H1 gross profit rose 9.0% to ¥161,396m; gross margin was 37.5%, up 0.3 percentage points, and operating margin was 20.5%, up 0.7 points.

• Profit before tax rose 12.9% to ¥89,703m; basic and diluted EPS were ¥106.61.

• Q2 revenue rose 9.0% to ¥219,450m, operating profit increased 12.1% to ¥46,561m and profit attributable to owners rose 11.7% to ¥30,799m.

• Operating cash flow was ¥94,534m and free cash flow ¥122,201m, versus ¥18,928m a year earlier.

Outlook and guidance

• FY2027 forecast: revenue ¥870bn (+6.8%), operating profit ¥180bn (+14.9%), operating margin 20.7%, profit attributable to owners ¥123bn (+12.0%) and EPS ¥218.50 (+14.0%).

• Versus April, revenue guidance rose ¥20bn, operating profit ¥5bn and parent-attributable profit ¥4bn; profit before tax is forecast at ¥182bn.

• Segment revenue forecasts changed: Financial IT Solutions +¥19bn to ¥484bn; IT Platform Services +¥5bn to ¥87bn; Consulting -¥4bn to ¥66bn; Industrial IT Solutions unchanged at ¥230bn.

• Current-FY revenue plus order backlog reached ¥724.1bn at Q2, up 8.8% YoY; realization rate increased 3.5 points to 85.2%.