Soliton Systems (3040) Q3 2026 earnings summary

Executive summary

• Nine-month revenue and major profit measures reached records; operating income exceeded the prior full-year record, driven by IT Security growth and a higher mix of proprietary products and services.

• IT Security led growth, while Video Communications and Eco New Business Development recorded segment losses.

Financial highlights

• 9M revenue was ¥15,926m, up 14.5% YoY; gross profit was ¥7,855m, up 21.7%, and gross margin rose to 49.3% from 46.4%.

• 9M operating income was ¥2,925m, up 56.9% YoY; operating margin improved to 18.4% from 13.4%.

• Ordinary income was ¥3,043m, up 59.1%; net income attributable to owners of the parent was ¥2,226m, up 57.3%.

• Basic EPS was ¥120.06 versus ¥76.36 YoY; comprehensive income was ¥2,227m versus ¥1,327m.

• Sales growth of ¥2,021m exceeded the ¥623m increase in cost of sales; SG&A rose ¥337m to ¥4,930m.

Outlook and guidance

• FY2026 guidance remains revenue of ¥22,300m and operating income of ¥3,900m, with operating margin of 17.5%; 9M progress was 71.4% and 75.0%, respectively.

• Forecast ordinary income is ¥3,950m and parent-attributable profit ¥2,670m; forecast basic EPS is ¥144.01. Earnings forecasts were unchanged from the latest announcement.

• FY2026 guidance is expected to reach prior FY2027 medium-term targets one year early; FY2027–FY2028 targets are due for review at FY2026 year-end.

• Growth priorities include proprietary products and services, recurring revenue, appropriate pricing, AI-driven productivity gains, and improved profitability.