Nomura Research Institute (4307) Q4 2025 earnings summary

Executive summary

• FY March 2025 revenue reached ¥764.8 billion (up 3.8% YoY), operating profit was ¥134.9 billion (up 12.0%), and net income attributable to owners was ¥93.8 billion (up 17.7%).

• Strong progress toward Medium-Term Plan 2025, with robust growth in Financial IT Solutions and improved profitability from production innovation.

• All major business segments contributed to growth, with Consulting and IT Platform Services showing the highest percentage increases.

• Domestic business exceeded initial targets, driven by AI utilization and consulting, while overseas revenue declined 4.3% YoY to 14.7% of total revenue.

• Dividend per share increased to ¥63.00, with a payout ratio of 38.6%.

Financial highlights

• Revenue rose 3.8% YoY to ¥764.8 billion; operating margin improved to 17.6% from 16.3%.

• EPS increased to ¥163.57 (up ¥26.66 YoY); ROE reached 22.5% (up 2.5 points).

• Gross profit margin improved to 36.0%; free cash flow was ¥82.6 billion, down 7.0% YoY.

• EBITDA margin improved to 24.5%.

• Order backlog at year-end grew 7.9% YoY to ¥428.6 billion.

Outlook and guidance

• FY March 2026 revenue forecast at ¥810.0 billion (+5.9% YoY), operating profit at ¥150.0 billion (+11.2%), and net income at ¥104.0 billion (+10.9%).

• Operating margin expected to rise to 18.5%; EPS forecast at ¥181.78.

• Dividend per share projected to increase to ¥74.00, with payout ratio reaching 40.8%.

• Capital expenditure planned at ¥58.0 billion, with ¥17 billion allocated to AI-related initiatives.