Seven & i Holdings (3382) Q1 2027 earnings summary

Executive summary

• Q1 FY2026 saw strong growth in operating and net income, with operating income rising to ¥105,039 million and net income to ¥60,600 million, driven by both domestic and overseas convenience store operations, despite revenues from operations being impacted by deconsolidation and FX effects.

• Strategic initiatives focused on disciplined execution, embedding ROIC management, and building foundations for sustainable growth, with priorities including strengthening management information and leveraging global scale.

• Key growth drivers included fresh food differentiation, store network expansion, and new business ventures such as retail media.

• Comprehensive income swung to ¥126,675 million from a loss of ¥114,551 million in the prior year.

Financial highlights

• Q1 revenues from operations: ¥2,378.8 billion, up 2.4% year-over-year and 8.6% above plan, though some sources note a decline due to deconsolidation and FX impacts.

• Operating income: ¥105 billion, up 122.4% year-over-year; net income: ¥60.6 billion, up 95.3% year-over-year.

• EPS rose to ¥26.21, up from ¥18.97 in the prior year, aided by share buybacks totaling ¥600 billion.

• EBITDA for the quarter was ¥233.2 billion, up 38.0% year-over-year.

• Record high Q1 results, exceeding plan at all levels.

Outlook and guidance

• Full-year FY2026 forecast revised upward: revenues ¥10,430 billion (10.4% increase from previous guidance), operating income ¥425 billion, net income ¥278 billion, and EPS projected at ¥120.89.

• 1H FY2026 guidance also revised up, with revenues at ¥5,510 billion and operating income at ¥234 billion.

• Annual dividend forecast raised to ¥60.00 per share.

• Upward revisions driven by overseas segment fuel gross profit and FX assumptions; second-half forecast more conservative due to fuel market uncertainty and higher SG&A.

• Overseas CVS operations expected to drive majority of incremental growth.