OBIC Business Consultants (4733) Q1 2027 earnings summary

Executive summary

• Q1 FY2027 saw strong double-digit growth in revenue and profit, driven by robust cloud adoption and high contract retention rates.

• Net sales for the three months ended June 30, 2026, rose 13.8% year-over-year to ¥13,831 million, with operating profit up 18.1% and net profit up 19.7%.

• Strategic focus on cloud migration, AI enhancement, and security underpinned operational priorities.

• Basic earnings per share increased to ¥64.89 from ¥54.19 year-over-year.

Financial highlights

• Net sales rose 13.8% year-over-year to ¥13.8B, with operating profit up 18.1% to ¥6.6B.

• Gross profit increased 14.4% to ¥11.8B, and operating margin improved to 47.6%.

• Annual Recurring Revenue (ARR) grew 14.4% year-over-year to ¥47.6B.

• Operating profit reached ¥6,577 million, up 18.1% year-over-year; ordinary profit was ¥7,129 million, up 20.8%.

• Net cash provided by operating activities increased to ¥3,275 million from ¥1,049 million year-over-year.

Outlook and guidance

• Full-year net sales forecast for FY ending March 31, 2027, is ¥57,500 million, up 11.9% year-over-year.

• Operating profit is projected at ¥12,479 million, up 11.8%, and net profit at ¥19,350 million, up 6.7%.

• Continued expansion of cloud migration initiatives, especially ahead of end-of-support for on-premises products.

• Ongoing investment in AI and security to drive future growth and operational efficiency.

• Basic earnings per share forecast for the full year is ¥257.39.