Cybozu, Inc. (TSE: 4776), the Tokyo-based cloud-software company behind the kintone low-code application platform, the Garoon enterprise portal, and Cybozu Office groupware, opened its FY2026 fiscal year (ending December 2026) with a strong first quarter. For the three months to March 31, 2026, consolidated revenue rose 17.0% year-on-year to ¥10,246 million, up from ¥8,759 million a year earlier, while operating profit advanced 15.3% to ¥3,014 million from ¥2,614 million. Ordinary profit climbed 22.1% to ¥3,084 million, and profit attributable to owners of the parent grew 21.6% to ¥2,191 million from ¥1,802 million. Earnings per share reached ¥47.39, up from ¥39.00 a year ago.
The results extend Cybozu's track record of steady double-digit top-line growth, underpinned by its subscription-based business model. Comprehensive income for the quarter came in at ¥1,620 million, down 14.3% from the prior year, reflecting movements in other comprehensive income items rather than any weakness in the core operating business — where every key profit line posted double-digit gains.
Cloud subscriptions drive recurring revenue
Cybozu's growth engine remains its cloud (SaaS) portfolio, led by kintone — a low-code platform that lets non-engineers build custom business applications without traditional programming. Together with the Garoon enterprise portal and the long-established Cybozu Office groupware suite, the product line is sold predominantly on a recurring subscription basis, giving Cybozu a high proportion of stable, contracted revenue that compounds as the installed base of paying organizations expands. The 17.0% revenue increase reflects continued net additions of subscribers and steady expansion within existing accounts, as Japanese enterprises and public-sector bodies accelerate digital transformation and migrate legacy on-premise workflows to the cloud. The subscription model also smooths quarterly volatility: revenue recognized in any period is largely a function of the contracted base carried forward, making the business comparatively resilient.
Balance sheet remains conservatively funded
Total assets stood at ¥27,023 million at the end of the first quarter, down from ¥30,140 million at the prior-year comparison point, while net assets were ¥17,586 million. The equity ratio remained robust at 64.9%, underscoring a conservatively financed balance sheet with limited reliance on debt — a typical profile for an asset-light SaaS business that converts subscription revenue into cash efficiently. The reduction in total assets primarily reflects the timing of cash distributions and working-capital movements rather than any deterioration in the underlying franchise.
Dividend raised to ¥50; full-year guidance reaffirmed
Reflecting confidence in its earnings trajectory, Cybozu raised its FY2026 year-end dividend forecast to ¥50 per share, up from ¥40 the prior year. For the full year ending December 2026, the company guides for revenue of ¥42,168 million (+12.7%), operating profit of ¥10,514 million (+4.1%), ordinary profit of ¥10,732 million (+3.9%), and net profit attributable to owners of ¥7,445 million (+5.1%), equivalent to EPS of ¥160.99. The first-quarter operating profit of ¥3,014 million represents roughly 29% of the full-year operating-profit target, leaving the company comfortably on track. The more modest growth implied in the profit guidance — relative to the 12.7% revenue target — reflects continued investment in sales, marketing, and product development to capture share in Japan's expanding cloud-software market.
| Metric | Q1 FY2026 | Q1 FY2025 | YoY |
|---|---|---|---|
| Revenue (¥ million) | 10,246 | 8,759 | +17.0% |
| Operating profit (¥ million) | 3,014 | 2,614 | +15.3% |
| Ordinary profit (¥ million) | 3,084 | 2,527 | +22.1% |
| Net profit attrib. to owners (¥ million) | 2,191 | 1,802 | +21.6% |
| EPS (¥) | 47.39 | 39.00 | +21.5% |
| Comprehensive income (¥ million) | 1,620 | 1,890 | −14.3% |
| Total assets (¥ million) | 27,023 | 30,140 | −10.3% |
| Equity ratio | 64.9% | — | — |
| Annual dividend forecast (¥) | 50 | 40 | +25.0% |
| FY2026 guidance — revenue (¥ million) | 42,168 | — | +12.7% |
| FY2026 guidance — operating profit (¥ million) | 10,514 | — | +4.1% |
| FY2026 guidance — net profit (¥ million) | 7,445 | — | +5.1% |
| FY2026 guidance — EPS (¥) | 160.99 | — | — |
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.