OBIC Business Consultants (4733) Q2 2026 earnings summary

Executive summary

• Net sales for 1H FY2026 rose 9.6% year-over-year to ¥24,931 million, with operating profit up 10.4% to ¥11,160 million and net profit up 8.4% to ¥8,273 million.

• Achieved strong growth in cloud business, with ARR up 12.3% year-over-year and cloud revenue up 20.4% year-over-year, driven by SaaS expansion and high contract retention rates.

• Basic earnings per share increased to ¥110.05 from ¥101.53 year-over-year.

• Cloud solutions, especially core business and Bugyo Cloud Edge, led sales growth, while on-premises sales declined as expected due to the shift to cloud.

Financial highlights

• Annual Recurring Revenue (ARR) reached ¥42.5 billion as of September 2025, up from ¥37.9 billion a year earlier.

• Gross profit for the period was ¥21,060 million, up from ¥19,028 million year-over-year.

• Ordinary profit increased 10.7% year-over-year to ¥11,945 million.

• Cloud ARPU increased 13.2% year-over-year to ¥562,000.

• Recurring revenue ratio improved to 83.7% in 1H FY2026, with recurring revenue CAGR at 19.0% from 2022 to 2025.

Outlook and guidance

• Full-year forecast for fiscal year ending March 31, 2026: net sales ¥51,700 million (+10.0% YoY), operating profit ¥24,000 million (+10.4% YoY), net profit ¥17,350 million (+7.2% YoY), and basic EPS ¥230.79.

• Business strategy focuses on accelerating cloud migration, expanding Bugyo V ERP Cloud sales, digitalizing peripheral operations, BPaaS growth, and enhancing AI and security.

• End of support for Bugyo 11 series in April 2027 to drive further cloud migration.

• Continued investment in AI-driven automation, security, and compliance to maintain competitive advantage.

• No revisions to previously announced earnings or dividend forecasts.