SMS (2175) Q1 2026 earnings summary

Executive summary

• Achieved year-over-year growth in sales and profits for Q1 FY03/26, with net sales up 7.1% to ¥18,672 million and profit attributable to owners of parent up 24.6%, driven by Career and Kaipoke businesses while Overseas Business declined.

• Significant profit increase resulted from controlled expense growth and reduced hiring, aligning with initial plans.

• The company continues to address Japan's aging society through information infrastructure, focusing on medical care, elderly/disability care, healthcare, and senior life.

• Marked steady progress toward full-year FY03/26 guidance, continuing a 22-year streak of sales growth since establishment.

Financial highlights

• Net sales: ¥18,672 million (up 7.1% YoY).

• Operating income: ¥3,616 million (up 21% YoY).

• Ordinary income: ¥4,785 million (up 16.3% YoY).

• Net income: ¥3,940 million (up 25% YoY).

• Basic earnings per share: ¥47.17 (up from ¥36.71 YoY).

Outlook and guidance

• On track to achieve FY03/26 guidance, targeting continued sales and profit growth; full-year forecast: net sales ¥67,544 million (up 10.8%), operating profit ¥7,287 million (up 15.0%), ordinary profit ¥9,468 million (up 13.3%), net income ¥7,029 million (up 16.1%), EPS ¥84.14.

• No change to previously announced earnings or dividend forecasts.

• Medium-term targets include 15%+ CAGR in EPS and 20% ROE by FY03/31.

• Dividend payout ratio set at 30% with a progressive dividend policy.