BIPROGY (8056) Q1 2027 earnings summary

Executive summary

• Q1 FY March 2027 revenue fell to ¥91,464 million, down 5.6% year-over-year, with operating profit at ¥6,817 million, down 20.4%, due to product procurement delays from internal system integration, deferring about ¥6.0 billion in revenue.

• Gross profit rose 2.5% to ¥24,390 million, and gross margin improved by 2.1 points to 26.7%.

• Orders and order backlogs rose significantly, with orders up 25.8% and backlog up 29.2% year-over-year, driven by large-scale AI-related projects and steady accumulation across segments.

• System services and outsourcing showed improved profitability, while product sales and support services declined.

Financial highlights

• Q1 revenue: ¥91.5B, down ¥5.4B (-5.6%) year-over-year; gross profit: ¥24.4B, up ¥0.6B (+2.5%).

• Operating profit: ¥6.8B, down ¥1.8B (-20.4%); profit attributable to owners: ¥4.5B, down ¥1.3B (-23.1%).

• Adjusted operating profit: ¥6.7B (7.3% margin), down from ¥7.8B (8.1%).

• Orders: ¥119.9B (+25.8%); order backlogs: ¥177.7B (+29.2%).

• Free cash flow for Q1 was ¥10,421 million, down from ¥16,745 million in the prior year.

Outlook and guidance

• Full-year FY March 2027 forecast unchanged: revenue ¥470.0B (+8.4%), operating profit ¥48.4B (+13.6%), profit attributable to owners ¥32.2B (+3.2%).

• Dividend per share forecast: ¥140 (up ¥10 year-over-year).

• IT investment demand remains strong, with growth expected in focus areas.