Nomura Research Institute (4307) Q3 2026 earnings summary

Executive summary

• Revenue and profit increased year-over-year, driven by strong domestic demand and improved profitability, especially in Financial IT and IT Infrastructure/Platform segments.

• Overseas business performance declined due to weak order intake, with structural reforms underway.

• Operating profit rose 16.0% to ¥118,780 million, with margin at 19.7% (up 1.7 points), reflecting improved profitability and absence of prior year one-time costs.

• Profit attributable to owners of parent increased 15.9% YoY to ¥83,201 million.

• The company continued to execute its Medium-term Management Plan, focusing on core business expansion, digital transformation, global growth, and management platform enhancement.

Financial highlights

• 3Q FY March 2026 revenue rose 6.0% YoY to ¥602.3 billion; operating profit up 16.0% to ¥118.8 billion.

• Gross profit increased 9.0% YoY to ¥224,069 million; gross profit margin rose to 37.2% from 36.2% YoY.

• Total comprehensive income surged 26.8% to ¥99,814 million.

• Cash and cash equivalents at period end were ¥108,663 million, down ¥59,933 million from the previous fiscal year.

• Free cash flow decreased 55.7% YoY to ¥25,207 million, mainly due to higher investments in intangible assets.

Outlook and guidance

• Full-year FY March 2026 revenue forecast unchanged at ¥810.0 billion, up 5.9% YoY; operating profit forecast at ¥150.0 billion, up 11.2% YoY.

• Profit attributable to owners of parent is expected to reach ¥104,000 million (up 10.9%), with basic EPS of ¥181.51.

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

• Domestic order environment expected to remain solid; overseas business undergoing structural reform.