Computer Engineering & Consulting (9692) Q1 2027 earnings summary

Executive summary

• Achieved record highs in sales, operating income, orders received, and order backlog for the fiscal year ended January 31, 2026, driven by large-scale government projects, robust ICT investment, and growth in security services and digital transformation solutions.

• Sales increased 17.2% year-over-year; operating income rose 9.6% to 29.7% depending on the reporting period; net income attributable to owners of parent grew up to 28.8%.

• Completed treasury stock repurchase and increased annual dividend to 70 yen, with further dividend increases and share repurchases planned for FY2027.

Financial highlights

• Net sales: ¥65,882 million (+17.2% YoY); operating income: ¥7,338 million (+9.6% YoY); net income: ¥5,201 million (+28.8% YoY).

• Gross profit margin declined to 25.6% (from 27.3%); operating margin at 11.1% (down 0.8pt YoY).

• Orders received: ¥72,671 million (+28.4% YoY); order backlog: ¥22,952 million (+42.0% YoY).

• Total assets increased 18.2% to ¥62,210 million, mainly due to higher product inventory.

• Quarterly net income per share was 50.99 yen, up from 39.54 yen in the prior year.

Outlook and guidance

• FY2027 forecast: Net sales ¥68,000 million (+3.2%), operating income ¥7,750 million (+5.6% to +7.7%), net income ¥5,600 million (+7.7% to +17.4%).

• Annual dividend forecast raised to up to 85 yen; share repurchases scheduled.

• Continued investments in HR, R&D, and capital expenditures to support medium- to long-term growth.