Hikari Tsushin, Inc. (TSE: 9435), one of Japan's largest diversified corporate sales and distribution conglomerates, reported full-year results for the fiscal year ended March 31, 2026 on May 13, 2026. Consolidated revenue grew 7.0% year-on-year to ¥734,791 million, while operating profit advanced 11.1% to ¥116,664 million. Profit before tax rose a sharper 32.1% to ¥199,081 million, reflecting strong equity-method investment income of ¥26,850 million, and profit for the period attributable to owners of the parent climbed 28.5% to ¥151,014 million, up from ¥117,523 million a year earlier. Basic earnings per share rose to ¥3,440.12 from ¥2,671.18.
The results underscore Hikari Tsushin's resilient subscription-driven model. The company generates a substantial share of its revenue from multi-year recurring contracts — predominantly telecom service subscriptions (mobile and fixed-line agency), insurance products, and office-equipment leases — sold through its large nationwide field-sales force. This recurring base provides downside protection even as front-loaded contract acquisition costs weigh on near-term margins; the outperformance in profit before tax versus operating profit reflects the growing contribution from equity-method investees and other non-operating income streams built up over years of strategic investment.
Strong profit leverage on modest top-line growth
The 11.1% rise in operating profit on a 7.0% revenue gain points to positive operating leverage in Hikari Tsushin's business mix. The operating margin widened slightly to approximately 15.9% of revenue — one of the highest in Japan's corporate services distribution sector — from 15.3% in FY25. Total assets grew meaningfully to ¥2,853,866 million from ¥2,371,026 million, primarily reflecting the expansion of the group's investment portfolio. The equity ratio stood at 41.5%, up from 38.6%, while equity attributable to owners of the parent rose to ¥1,185,668 million, equivalent to book value per share of ¥27,056.17. Operating cash flow was ¥57,073 million for the year.
Dividend streak extended; FY27 guidance calls for continued growth
Hikari Tsushin has built one of Japan's longest unbroken dividend-growth records among mid-to-large cap companies. For FY26, the annual dividend totalled ¥751 per share (¥181 Q1 + ¥185 Q2 + ¥190 Q3 + ¥195 year-end), up from ¥661 in FY25 — a 13.6% increase. For FY27 (April 2026–March 2027), the company forecasts an annual dividend of ¥780 per share, extending the growth streak. On the income statement, FY27 guidance calls for revenue of ¥775,000 million (+5.5%) and operating profit of ¥130,000 million (+11.4%). Net profit attributable to owners is guided at ¥120,000 million (−20.5%), equivalent to EPS of ¥2,738.32 — the decline from the elevated FY26 level primarily reflects the normalisation of equity-method investment income and non-operating gains that boosted profit before tax and net profit in FY26 well above operating profit trends. The core operating business trajectory remains upward.
| Metric | FY2026 | FY2025 | YoY |
|---|---|---|---|
| Revenue (¥ million) | 734,791 | 686,553 | +7.0% |
| Operating profit (¥ million) | 116,664 | 105,036 | +11.1% |
| Profit before tax (¥ million) | 199,081 | 150,718 | +32.1% |
| Net profit attrib. to owners (¥ million) | 151,014 | 117,523 | +28.5% |
| Basic EPS (¥) | 3,440.12 | 2,671.18 | +28.8% |
| Total assets (¥ million) | 2,853,866 | 2,371,026 | +20.3% |
| Equity ratio | 41.5% | 38.6% | +2.9pp |
| Book value per share (¥) | 27,056.17 | 20,845.16 | +29.8% |
| Annual dividend (¥) | 751 | 661 | +13.6% |
| FY27 guidance — revenue (¥ million) | 775,000 | — | +5.5% |
| FY27 guidance — operating profit (¥ million) | 130,000 | — | +11.4% |
| FY27 guidance — net profit (¥ million) | 120,000 | — | −20.5% |
| FY27 guidance — EPS (¥) | 2,738.32 | — | — |
| FY27 dividend forecast (¥) | 780 | — | +3.9% |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.