TIS (3626) Q3 2026 earnings summary

Executive summary

• Net sales for the first nine months of FY2026 rose 4.7% year-over-year to ¥436.3 billion, with operating income up 12.1% to ¥54.8 billion and net income attributable to owners up 10.8% to ¥38.2 billion, driven by business expansion, strong IT investment demand, productivity improvements, and fewer unprofitable projects.

• Sales and operating income rose year-over-year for the first three quarters, supported by digital transformation and service offerings.

• Operating margin remained stable in the 12% range, with improved gross profit margin and effective control of unprofitable projects.

• Order intake increased moderately year-over-year, though order backlog declined due to lower software development in Financial IT and Industrial IT segments.

• Extraordinary income of ¥3.9 billion (mainly from gain on sale of investment securities) and extraordinary losses of ¥2.7 billion (mainly impairment losses) were recorded.

Financial highlights

• Net sales for the first three quarters reached ¥436.3 billion, up 4.7% year-over-year.

• Operating income was ¥54.8 billion, up 12.1% year-over-year; operating margin improved to 12.6%.

• Net income attributable to owners was ¥38.2 billion, up 10.8% year-over-year; net income to net sales ratio rose to 8.8%.

• Basic earnings per share for the nine months was ¥167.05, up from ¥148.13 year-over-year.

• Total assets as of December 31, 2025, were ¥524.1 billion, down ¥34.0 billion from March 31, 2025, mainly due to securities redemptions and treasury share acquisition.

Outlook and guidance

• Full-year performance is expected to align with the revised plan announced at the first-half results; no changes to the forecast.

• FY2026 full-year forecast: net sales ¥588.0 billion (+2.9%), operating income ¥75.0 billion (+8.6%), net income ¥50.0 billion (flat year-over-year), and EPS ¥220.70.

• Operating margin forecasted to rise to 12.8%; ROE expected at 14.8%.

• Dividend forecast for FY2026 is ¥76.00 per share (interim ¥38.00, year-end ¥38.00).

• Net income is projected to decline slightly due to smaller net extraordinary gains.