SAKURA Internet (3778) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 FY 3/2026 rose 26.2% year-over-year to ¥7,492 million, a record high for the first quarter, driven by strong GPU infrastructure and cloud services demand.

• GPU infrastructure services sales surged 174.0% year-over-year to ¥1,363 million, while cloud services and other services also posted solid growth.

• Despite revenue growth, operating profit fell to -¥457 million due to increased costs from talent acquisition, depreciation, and delayed GPU revenue.

• Loss attributable to owners of parent was -¥324 million, compared to a ¥42 million profit a year ago.

• Strategic investments in talent and infrastructure are progressing, with a focus on Government Cloud certification and expanding generative AI services.

Financial highlights

• Net sales: ¥7,492 million (+26.2% YoY); GPU infrastructure services: ¥1,363 million (+174.0% YoY); cloud services: +9.8% YoY.

• Operating profit: -¥457 million (down from ¥231 million YoY); ordinary profit: -¥438 million; profit attributable to owners: -¥324 million.

• Gross profit margin declined to 20.6% from 28.6% YoY due to higher costs.

• Net income per share was ¥(8.11), down from ¥1.15 in the prior year.

• Annual Recurring Revenue (ARR) increased 11.1% YoY to ¥14,310 million.

Outlook and guidance

• Full-year net sales forecast revised to ¥36,500 million (up 16.2% YoY), reflecting the completion of a large generative AI project and temporary slowdown in GPU service sales.

• Operating profit forecast cut by 90.8% to ¥350 million; profit attributable to owners forecast at ¥200 million; net loss forecast for the full year is ¥800 million, with net income per share of ¥(19.99).

• Dividend forecast raised to ¥5.00 per share for the year, maintaining stable shareholder returns.

• Next fiscal year and beyond forecasts remain unchanged, with expectations for growth resumption as new initiatives take hold.