OBIC Business Consultants (4733) Q3 2026 earnings summary

Executive summary

• Net sales for Q3 FYE3/2026 increased by 9.0% year-over-year to ¥37,877 million, with operating profit up 8.5% to ¥17,270 million and net profit rising 7.2% to ¥12,561 million, driven by strong cloud business growth and recurring revenue expansion.

• Basic earnings per share for the period was ¥167.10, up from ¥155.93 in the prior year.

• Cloud ARR grew 12.0% year-over-year, with core cloud business ARR CAGR at 45% and total cloud revenue CAGR at 35%.

• Dividend policy updated: year-end dividend for March 2026 raised from ¥53 to ¥58 per share, with a projected payout ratio of 48%.

Financial highlights

• Gross profit for the nine months was ¥32,089 million, up from ¥29,041 million year-over-year, with gross margin at 84.7%.

• Ordinary profit reached ¥18,328 million, an 8.8% increase from the previous year.

• Cash and cash equivalents at period end were ¥160,166 million, down from ¥161,047 million at the start of the period.

• Net cash provided by operating activities was ¥9,246 million, while investing activities used ¥2,383 million and financing activities used ¥7,743 million.

• Recurring revenue ratio reached 83.9% for 1Q-3Q FYE3/2026.

Outlook and guidance

• Full-year forecast for fiscal year ending March 31, 2026: net sales of ¥51,700 million (+10.0% YoY), operating profit of ¥24,000 million (+10.4% YoY), ordinary profit of ¥25,000 million (+8.5% YoY), and net profit of ¥17,350 million (+7.2% YoY).

• Basic earnings per share forecasted at ¥230.79 for the full year.

• Continued focus on cloud migration, digitalization, and AI-driven solutions to sustain growth.

• Dividend payout ratio expected to remain around 48%, with annual dividend forecast revised upward to ¥111.00 per share.