Simplex (4373) Q1 2026 earnings summary

Executive summary

• Record-high quarterly revenue of ¥13.46bn, up 22.9% year-over-year, driven by System Integration, Operation Service, and Strategy/DX Consulting.

• Operating profit nearly doubled to ¥3.21bn, with margin improving to 23.9% from 14.8% a year ago.

• Profit attributable to owners of parent increased 101.2% year-over-year to ¥2.16bn.

• Upward revision of H1 and full-year forecasts due to strong Q1 results and favorable business conditions.

• Solid demand for digital transformation (DX) and IT solutions continues to drive revenue growth.

Financial highlights

• Gross profit rose 30.3% year-over-year to ¥5.92bn; gross margin improved to 44.0% from 41.5%.

• SG&A expenses increased 13.6% due to new employee costs and training; R&D expenses decreased 59.5% as resources shifted to client projects.

• Basic EPS was ¥38.01, up from ¥18.43 in the prior year period.

• Profit attributable to owners of parent increased 101.2% year-over-year to ¥2.16bn.

• Gross profit margin improved to 44.0% from 41.5% year-over-year.

Outlook and guidance

• Full-year revenue forecast revised upward by ¥1.0bn to ¥55.5bn; operating profit forecast raised by ¥0.7bn to ¥13.4bn.

• Profit attributable to owners of parent projected at ¥9.15bn for the year; basic EPS forecast at ¥159.48.

• Gross profit margin for the year expected to remain at 43.5%.

• H1 operating profit projected to exceed initial plan by ¥0.8bn; R&D expenses to be recorded at ¥0.5bn per quarter from Q2 onward.

• Revenue growth expected to be led by System Integration and Financial Retail.