Nomura Research Institute (4307) Q4 2026 earnings summary

Executive summary

• Revenue for FY March 2026 rose 6.5% year-over-year to ¥814.7 billion, surpassing the MTP2025 goal, driven by strong Financial IT Solutions and IT Platform Services segments.

• Operating profit fell 56.8% to ¥58.3 billion due to significant impairment losses in Australia (¥77 billion) and North America (¥20 billion), missing the operating profit target.

• Domestic operations achieved growth in both revenue and profit across all segments, supported by strong demand and productivity improvements.

• Profit attributable to owners of parent dropped 83.7% year-over-year to ¥15.3 billion.

• The company is entering the first year of MTP2028, focusing on domestic growth and profitability, with continued strong demand for modernization and AI utilization.

Financial highlights

• Operating profit for FY March 2026 was ¥58.3 billion, down 56.8% year-over-year; excluding impairment losses, operating profit was ¥156.7 billion, up 16.1%.

• Gross profit increased 9.0% to ¥300.2 billion; gross profit margin improved to 36.8% from 36.0% year-over-year.

• Profit attributable to owners of parent dropped 83.7% year-over-year to ¥15.3 billion; EPS fell to ¥26.62.

• Annual dividend per share increased to ¥77.00, with a payout ratio of 289.9%.

• ROE declined to 3.5% from 22.5% the previous year.

Outlook and guidance

• FY March 2027 revenue forecast is ¥850.0 billion (+4.3% YoY), with operating profit expected at ¥175.0 billion (+11.7% YoY, excluding impairment losses).

• Profit attributable to owners of parent is forecast at ¥119.0 billion (+8.3% YoY); annual dividend per share is forecast to increase to ¥84.00.

• Operating margin is projected to rise to 20.6%.

• Order backlog at the end of March 2026 was ¥470.6 billion, up 9.8% year-over-year.

• New medium-term plan (MTP2028) targets revenue of ¥950.0 billion and operating profit of ¥200.0 billion by FY2029.