Software Service (3733) Q2 2026 earnings summary

Executive summary

• Revenue for the six months ended April 2026 increased 20.8% year-over-year to ¥24,334 million, driven by strong demand for medical information systems and hardware sales.

• Operating profit declined 2.2% year-over-year to ¥4,180 million due to higher procurement costs for semiconductors and a greater proportion of hardware sales.

• Net income attributable to shareholders decreased 7.7% year-over-year to ¥2,752 million.

• The company operates a single segment focused on medical information systems.

Financial highlights

• Gross profit was ¥5,729 million, nearly flat year-over-year despite higher sales.

• Cash and cash equivalents at period-end were ¥16,926 million, up ¥874 million from the previous year-end.

• Operating cash flow was ¥6,644 million, up from ¥4,965 million in the prior year period.

• Investment cash outflow was ¥1,388 million, mainly for securities and fixed assets.

• Financing cash outflow was ¥4,381 million, primarily for dividends and share buybacks.

Outlook and guidance

• The company expects continued demand for medical information systems, especially electronic medical records and DX-related solutions.

• Ongoing cost pressures from semiconductor prices and hardware procurement are anticipated.

• The company is investing in office infrastructure to support future personnel growth.