PCA (9629) Q2 2026 earnings summary

Executive summary

• Net sales for the first half of FY2026 rose 4.2% year-over-year to ¥8,223M, driven by strong cloud services growth and new business initiatives, but profitability declined due to higher costs and strategic investments.

• Operating profit declined 11.9% year-over-year to ¥1,211M, impacted by a 10.2% increase in development-related expenses.

• Profit attributable to owners of parent decreased 16.8% year-over-year to ¥759M.

• Strategic M&A included the acquisition of Tyrell Systems Inc. to accelerate development and business synergies.

• New product launches and AI initiatives, such as PCA Hub Expense Management and an AI chatbot, supported digital transformation and operational efficiency.

Financial highlights

• Net sales: ¥8,223M (+4.2% YOY); operating profit: ¥1,211M (-11.9% YOY); profit attributable to owners: ¥759M (-16.8% YOY); ordinary profit: ¥1,206M (-14.3% YOY); comprehensive income: ¥672M (-53.2% YOY).

• Gross profit margin declined by 350 bps to 62.2%; operating profit margin fell by 270 bps to 14.7%.

• Cloud service sales rose 15.0% YOY, now 63.0% of total sales; maintenance service sales fell 14.3% YOY.

• Subscription & maintenance revenue accounted for over 80% of total revenue.

• Earnings per share: ¥37.90 (down from ¥45.59 YOY).

Outlook and guidance

• FY2026 full-year net sales forecast revised down to ¥17,539M (-0.8% vs. initial), with operating profit forecast at ¥2,543M (-9.9% vs. initial).

• Operating profit expected to decline 5.9% YOY due to increased development and personnel costs.

• Dividend forecast maintained at ¥95 per share, with a payout ratio of 115.4%.

• Full-year ordinary profit forecast: ¥2,530M (down 5.9% YOY); profit attributable to owners: ¥1,649M (down 5.3% YOY); EPS forecast: ¥82.26.