SERAKU (6199) Q1 2026 earnings summary

Executive summary

• Net sales for 1Q FY26 were ¥6,252.9 million, up 0.9% year-over-year, but operating profit fell 24.3% to ¥582.3 million due to increased recruitment, education, and sales structure investments.

• Ordinary profit declined 24.3% to ¥587.3 million, and profit attributable to parent decreased 25.8% to ¥356.9 million.

• The Japanese IT sector saw steady demand for DX and generative AI, but industry-wide IT personnel shortages persisted.

• Progress rates for FY26 targets are 22.8% for net sales and 20.4% for operating profit.

Financial highlights

• Gross profit was ¥1,610.6 million, down 6.0% year-over-year, with gross profit margin decreasing due to higher cost of sales.

• SG&A expenses rose 8.9% year-over-year.

• Net income per share was ¥26.93, compared to ¥35.61 in the prior year.

• Comprehensive income dropped 25.9% year-over-year to ¥355.9 million.

• Total assets increased to ¥14,078.7 million from ¥13,324.3 million at the previous fiscal year-end; equity ratio was 63.9%.

Outlook and guidance

• No revisions to the previously announced earnings forecasts for the fiscal year ending August 31, 2026.

• FY26 plan targets net sales of ¥27,400 million (+10.6% YoY), operating profit of ¥2,850 million (+11.7% YoY), and profit attributable to owners of parent at ¥1,870 million (+9.4% YoY).

• The year is positioned as a foundation-building phase for transformation into an AI service company.

• DPS for FY26 is expected to increase by ¥0.50, reflecting performance-linked dividends and treasury share retirement.