TIS (3626) Q1 2026 earnings summary

Executive summary

• Sales and operating income rose year-over-year, supported by robust IT investment demand, digital transformation, and productivity improvements.

• Operating margin improved to 11.7%, driven by higher gross profit margin and productivity gains.

• Orders received and order backlog increased, led by software development in Financial IT and Regional IT segments.

• TIS and INTEC have merged, with the new entity to be named TISI Inc., aiming to enhance corporate value and governance.

• Extraordinary income included a ¥1,354 million gain on sale of investment securities.

Financial highlights

• Net sales for Q1 FY2026 were ¥140,316 million, up 4.7% year-over-year.

• Operating income reached ¥16,353 million, a 16.3% increase year-over-year.

• Net income attributable to owners was ¥12,520 million, up 17.2% year-over-year.

• Gross profit increased 6.8% year-over-year to ¥38,568 million; gross profit margin improved to 27.5% (+0.6p year-over-year).

• Basic earnings per share for Q1 FY2026 was ¥54.02, up from ¥45.66 in Q1 FY2025.

Outlook and guidance

• FY2026 full-year forecast expects net sales of ¥582,000 million (+1.8%), operating income of ¥73,000 million (+5.7%), and net income of ¥49,000 million (-2.0%) due to lower extraordinary income.

• Operating margin is projected to rise to 12.5%, with ROE estimated at 14.5%.

• Dividend forecast for FY2026 is ¥76.00 per share, up from ¥70.00 in FY2025.

• Segment forecasts indicate continued growth in Offering Service, Business Process Management, Industrial IT, and Regional IT, while Financial IT is expected to decline due to project completions.

• No change to previously announced earnings forecast; focus remains on high value-added business and productivity initiatives.