SAKURA Internet (3778) Q4 2026 earnings summary

Executive summary

• Net sales reached a record high of 35,301 million yen for FY 3/2026, up 12.4% year-over-year, driven by GPU infrastructure, cloud services, and large government projects.

• Significant investments in equipment and talent led to an operating loss of -403 million yen, compared to a profit of 4,145 million yen last year, due to increased human resources, depreciation, and service costs.

• Ordinary profit dropped 97.4% year-over-year to 105 million yen, mainly supported by non-operating subsidy income.

• Profit attributable to owners of parent fell 92.6% year-over-year to 216 million yen.

• Officially selected as the only domestic provider for Japan's Government Cloud, expanding public sector opportunities.

Financial highlights

• Net sales: 35,301 million yen (+12.4% YoY); Operating profit: -403 million yen (down from 4,145 million yen); Ordinary profit: 105 million yen; Profit attributable to owners: 216 million yen.

• Annual recurring revenue (ARR) for Q4 FY 3/2026 was 15,391 million yen, up 9.3% YoY.

• GPU infrastructure services sales rose 20.3% YoY; Cloud services up 9.4% YoY; Other services up 19.6% YoY.

• Gross profit margin declined to 22.5% from 35.8% due to higher costs; gross profit was 7,956 million yen.

• Cash and cash equivalents at year-end decreased to 15,394 million yen, down 47.8%.

Outlook and guidance

• FY 3/2027 net sales forecast: 45,000 million yen (+27.5% YoY); Operating profit expected to recover to 1,500 million yen; ordinary profit 1,200 million yen; net income 850 million yen.

• GPU infrastructure services projected to grow 125.9% YoY to 18,400 million yen; Cloud services to 17,600 million yen (+14.9% YoY).

• Dividend per share planned to increase from 5.00 yen to 5.50 yen.

• Focus on stable operation of existing GPU resources and selective new investments based on market conditions.

• Continued expansion in public and enterprise domains, leveraging government cloud adoption.