TKC Corporation (9746) Q1 2026 earnings summary

Executive summary

• Consolidated turnover for the 1st quarter reached 24,190 million yen, up 38.0% year-over-year, with operating profit up 111.2% and net profit up 110.5%.

• Non-consolidated turnover rose 40.8% year-over-year to 23,218 million yen, with operating profit up 117.9%.

• Over 650,000 enterprises filed electronic income tax returns using the company's systems, and cloud adoption surpassed 50%.

• Major system migrations for municipalities were completed, and digital solutions for SMEs and large enterprises were expanded.

• Strong performance was driven by significant growth in the Local Governments Business Division and steady gains in the Accounting Firm Business Division.

Financial highlights

• Gross profit increased to 17,669 million yen from 12,711 million yen year-over-year.

• Consolidated ordinary profit increased 107.1% year-over-year to 8,536 million yen.

• Net assets rose to 111,544 million yen, with an equity ratio of 86.1%.

• EPS for the quarter was 115.34 yen, up from 53.88 yen a year earlier.

• Dividend forecast for the year is 110 yen per share, continuing a record of annual increases.

Outlook and guidance

• Full-year consolidated turnover is forecast at 85,500 million yen (+2.4% year-over-year), with ordinary profit projected at 17,100 million yen (+3.1%).

• Full-year operating profit is forecast at 16,600 million yen (+2.8%), and net profit at 12,150 million yen (+0.5%).

• Interim and year-end dividends are each planned at 55 yen per share.