OBIC Business Consultants (4733) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 FYE3/2026 rose 8.2% year-over-year to ¥12.15B, driven by strong cloud business growth and higher solution sales.

• Operating profit grew 7.5% year-over-year to ¥5.57B, while net profit rose 2.9% to ¥4.07B.

• Basic earnings per share increased to ¥54.19 from ¥52.65 year-over-year.

• Cloud ARR expanded 13.5% year-over-year, with cloud revenue up 21.7% and core cloud business up 27.9%.

• Strategic focus remains on accelerating cloud migration, expanding high-value SaaS offerings, and leveraging AI and security enhancements.

Financial highlights

• Annual Recurring Revenue (ARR) reached ¥41.6B as of June 2025, up from ¥36.7B a year earlier.

• Gross profit increased 10.6% year-over-year, with margin improving to 85.1% from 83.3%.

• Cash and deposits at quarter-end were ¥157,934M, down from ¥161,057M at the previous fiscal year-end.

• Net cash provided by operating activities was ¥1,049M, down from ¥1,969M year-over-year.

• Recurring revenue ratio increased to 84.8% as of June 2025.

Outlook and guidance

• Full-year net sales forecasted at ¥51,700M, up 10.0% year-over-year, with operating profit expected to rise 10.4% to ¥24,000M.

• Net profit for the fiscal year ending March 31, 2026, projected at ¥17,350M, up 7.2% year-over-year.

• Continued focus on cloud migration, leveraging government IT subsidies, and expanding high-value SaaS and BPaaS offerings.

• Ongoing investment in AI-driven automation, security, and compliance to support future growth.

• No revisions to previously announced earnings or dividend forecasts.