TKC Corporation (9746) Q2 2026 earnings summary

Executive summary

• Consolidated turnover for the 2nd quarter reached 46,825 million yen, up 19.4% year-over-year, with operating profit at 11,126 million yen (+28.2%) and net profit at 7,961 million yen (+26.1%), achieving record highs driven by one-time revenue from local government system migrations and core business expansion.

• Significant growth in the Local Governments Business Division due to completion of standardization and Gov-Cloud migrations for 164 municipalities.

• The business foundation continues to expand, with growth in cloud-based services and recurring revenue initiatives for both accounting firms and local governments.

Financial highlights

• Turnover: 46,825 million yen (+19.4% YoY), operating profit: 11,126 million yen (+28.2%), ordinary profit: 11,437 million yen (+29.0%), net profit: 7,961 million yen (+26.1%), and interim net profit per share: 156.16 yen.

• Non-consolidated turnover was 44,599 million yen (+20.9% YoY), with operating profit at 10,944 million yen (+31.9%) and net profit at 8,088 million yen (+29.4%).

• Dividend for the 60th term is projected at 110 yen per share, marking 11 consecutive years of increases.

• Treasury stock acquisitions totaled 1.5 million shares during the period, with a total acquisition cost of approximately 5.9 billion yen.

Outlook and guidance

• Full-year consolidated turnover forecast for the 60th term is 85,500 million yen (+2.4% YoY), with operating profit projected at 16,600 million yen (+2.8%), ordinary profit at 17,100 million yen (+3.1%), and net profit at 12,150 million yen (+0.5%).

• Dividend forecast: 55 yen per share for both interim and year-end, total 110 yen per share.

• Guidance for the next two terms projects stable or modest growth in turnover and ordinary profit, but income is expected to decrease in the next fiscal year as one-time migration demand subsides.

• No changes to previously disclosed forecasts.