SAKURA Internet (3778) Q3 2026 earnings summary

Executive summary

• Net sales reached ¥24,024 million, up 12.3% year-over-year, driven by strong growth in cloud and GPU infrastructure services.

• Profitability declined due to front-loaded investments in equipment, talent, and increased service costs, resulting in an operating loss of ¥1,117 million and a loss attributable to owners of ¥551 million.

• Large-scale government and public sector projects contributed significantly to revenue growth in Other services.

• Ordinary loss was ¥799 million, despite subsidy income.

Financial highlights

• Net sales: ¥24,024 million (+12.3% YoY); Operating profit: -¥1,117 million (down from ¥2,585 million YoY); Ordinary profit: -¥799 million; Profit attributable to owners: -¥551 million.

• Gross profit declined to ¥5,038 million from ¥7,316 million YoY; comprehensive income was negative ¥607 million.

• Annual Recurring Revenue (ARR) increased 9.6% YoY to ¥15,061 million.

• Cost of sales rose 34.8% YoY, gross profit margin declined from 34.2% to 21.0%.

• Basic earnings per share dropped to ¥(13.77) from ¥42.40 YoY.

Outlook and guidance

• Full-year net sales forecast at ¥36,500 million (+16.2%), with operating profit expected to recover to ¥350 million.

• Revenue growth expected from new B200 GPU installations and large-scale project acquisitions in Q4.

• Dividend forecast for FY 3/2026 is ¥5.00 per share, up from ¥4.00 in FY2025.