Funai Soken Holdings Incorporated (TSE: 9757), Japan's leading mid-market management consulting and business advisory group, published its first-quarter results for the fiscal year ending December 2026 on May 13, 2026. Consolidated net sales for the three months ended March 31, 2026 rose 2.2% year-on-year to ¥7,944 million, continuing a steady top-line expansion trajectory. However, the operating profit line contracted, falling 9.0% to ¥2,100 million against ¥2,307 million in the prior-year quarter, as cost investments and a softer near-term consulting engagement mix weighed on margins. Ordinary profit declined 8.0% to ¥2,136 million. Earnings per share stood at ¥15.31 (diluted: ¥15.11), on a basis adjusted for the 1-for-2 stock split carried out on January 1, 2026.
Net profit attributable to owners of the parent surged to ¥1,391 million from just ¥79 million in Q1 FY2025 — a dramatic recovery that reflects an exceptionally low comparison base from the prior year, when a large non-recurring charge had compressed the bottom line. Comprehensive income for the quarter reached ¥1,459 million, compared with ¥71 million in the year-earlier period. The balance sheet remains robust: total assets stood at ¥31,350 million, net assets at ¥25,352 million, and the equity ratio at a conservatively strong 78.2%, up from 72.4% at the prior fiscal year-end.
Consulting demand intact; cost base and project timing weigh on margins
Funai Soken Holdings operates through its flagship Funai Soken Inc. subsidiary, one of Japan's best-known small and mid-sized business consultancies, alongside logistics consulting, digital transformation, and human resources services. The group's client base spans owner-managed manufacturers, retailers, and service businesses across Japan that rely on Funai Soken's practice-based consulting model to drive productivity and succession planning. The Q1 revenue advance of 2.2% signals ongoing demand for advisory services, but the 9-percentage-point drop in operating profit points to timing-related costs — typically front-loaded consultant hiring and training in the first quarter of a new fiscal year — rather than a structural weakening of the consulting pipeline. Management has not revised guidance, which implies confidence that the operating profit shortfall will be recovered through the remaining quarters.
Dividend maintained; H1 and full-year guidance unchanged
Funai Soken Holdings confirmed its full-year dividend forecast of ¥48 per share (¥24 interim + ¥24 year-end) for FY2026. The prior fiscal year's annual dividend was ¥85 per share on a pre-split basis, equivalent to ¥42.50 per share after adjusting for the January 2026 stock split — making the FY2026 forecast of ¥48 a meaningful increase in per-share payout terms. For the first half (H1, January–June 2026), the company guides for net sales of ¥17,500 million (+9.1%) and operating profit of ¥4,700 million (+0.3%). For the full fiscal year ending December 2026, guidance is net sales of ¥37,000 million (+11.0%), operating profit of ¥9,100 million (+3.3%), ordinary profit of ¥9,100 million (+2.9%), and net profit of ¥6,550 million (+0.4%), equivalent to a full-year EPS of ¥72.07.
Stock split and base-effect dynamics shape the year
The 1-for-2 share split effective January 1, 2026 means that prior-period EPS and dividend figures have been retroactively restated at half their nominal value when the company presents comparative data. FY2025 Q1 EPS on the restated basis was just ¥0.85, making the Q1 FY2026 figure of ¥15.31 look like a massive year-on-year leap — but this purely reflects the unusually low earnings in Q1 FY2025 rather than an acceleration in the underlying business. Investors following Funai Soken will likely focus on the operating profit trend (−9.0% in Q1) and the H1 and full-year guidance cadence as the more reliable signals of business momentum. With Q1 operating profit at ¥2,100 million against an H1 target of ¥4,700 million, the company needs roughly ¥2,600 million in Q2 to hit its half-year goal — a quarterly level that would be broadly in line with recent run rates if the cost headwinds ease.
| Metric | Q1 FY2026 | Q1 FY2025 | YoY |
|---|---|---|---|
| Net sales (¥ million) | 7,944 | 7,775 | +2.2% |
| Operating profit (¥ million) | 2,100 | 2,307 | −9.0% |
| Ordinary profit (¥ million) | 2,136 | 2,321 | −8.0% |
| Net profit attrib. to owners (¥ million) | 1,391 | 79 | n.m. |
| EPS (¥, split-adjusted) | 15.31 | 0.85 | n.m. |
| Diluted EPS (¥) | 15.11 | 0.84 | n.m. |
| Comprehensive income (¥ million) | 1,459 | 71 | n.m. |
| Total assets (¥ million) | 31,350 | 34,493 | −9.1% |
| Net assets (¥ million) | 25,352 | 25,788 | −1.7% |
| Equity ratio | 78.2% | 72.4% | +5.8pp |
| Annual dividend forecast (¥) | 48 | 42.50* | +12.9% |
| FY guidance — net sales (¥ million) | 37,000 | — | +11.0% |
| FY guidance — operating profit (¥ million) | 9,100 | — | +3.3% |
| FY guidance — net profit (¥ million) | 6,550 | — | +0.4% |
| FY guidance — EPS (¥) | 72.07 | — | — |
* FY2025 annual dividend of ¥85 per share (pre-split) restated at ¥42.50 per share to reflect the January 2026 1-for-2 stock split.
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.