EM Systems Co., Ltd. (TSE: 4820), an Osaka-based developer of IT systems for dispensing pharmacies and medical clinics — including receipt-computer billing systems and cloud-based medical software — reported its first-quarter results for the fiscal year ending December 31, 2026 on May 14, 2026. The consolidated, Japanese-GAAP figures showed a sharp pullback across every headline line, as the company lapped an exceptionally strong year-earlier quarter that had benefited from a wave of system-replacement demand. Revenue fell 24.9% year-on-year to ¥5,039 million, operating profit dropped 85.9% to ¥216 million, ordinary profit declined 77.2% to ¥388 million, and net profit attributable to owners of the parent fell 86.4% to ¥155 million from ¥1,139 million a year earlier. Basic EPS came in at ¥2.24, down from ¥16.48 in the prior-year quarter.
The steep declines are best understood against the prior-year base. In Q1 FY2025, revenue had surged 20.5% and operating profit had more than doubled (+112.8%) as pharmacy and clinic customers accelerated system upgrades. Against that elevated comparison, the current quarter represents a return toward a more normalised run-rate rather than a structural deterioration in the underlying business. Comprehensive income for the quarter was ¥267 million (−76.6%), down from ¥1,140 million a year earlier.
New subsidiary joins the consolidation
EM Systems noted a material change in its scope of consolidation during the quarter, adding one new subsidiary — Conduct Co., Ltd. — with no companies removed. The addition broadens the group's footprint in healthcare IT and is expected to contribute to the platform across future quarters, though its first-quarter impact on the headline numbers was limited given the timing of the consolidation.
Balance sheet remains solidly capitalised
Total assets stood at ¥26,313 million at quarter-end, down from ¥27,506 million at the prior year-end, while net assets eased to ¥19,178 million from ¥20,432 million. The equity ratio remained robust at 72.5%, only modestly below the 73.9% recorded at the end of FY2025, underscoring the company's conservative, cash-rich capital structure. Book value per share was ¥275.57, compared with ¥293.77 at the prior year-end, with shareholders' equity of ¥19,075 million.
Dividend reset; full-year guidance points to a softer year
EM Systems revised its dividend plan, guiding to an interim dividend of ¥5.00 per share for FY2026, against ¥17.00 paid at the interim point in FY2025 (which carried a ¥22.00 year-end dividend for a ¥39.00 annual total). For the full year, management forecasts revenue of ¥22,762 million (−3.8%), operating profit of ¥3,316 million (−9.8%), ordinary profit of ¥3,939 million (−8.7%), and net profit attributable to owners of ¥2,193 million (−10.6%), equivalent to full-year EPS of ¥31.69. The first-half (cumulative) outlook calls for revenue of ¥10,273 million (−15.4%) and operating profit of ¥447 million (−78.5%), implying that the bulk of full-year profit is expected to be weighted toward the second half. Both the earnings and dividend forecasts were revised from previously published guidance.
| Metric | Q1 FY2026 | Q1 FY2025 | YoY |
|---|---|---|---|
| Revenue (¥ million) | 5,039 | 6,714 | −24.9% |
| Operating profit (¥ million) | 216 | 1,533 | −85.9% |
| Ordinary profit (¥ million) | 388 | 1,701 | −77.2% |
| Net profit (¥ million) | 155 | 1,139 | −86.4% |
| Basic EPS (¥) | 2.24 | 16.48 | −86.4% |
| Comprehensive income (¥ million) | 267 | 1,140 | −76.6% |
| Total assets (¥ million) | 26,313 | 27,506 | −4.3% |
| Net assets (¥ million) | 19,178 | 20,432 | −6.1% |
| Equity ratio | 72.5% | 73.9% | −1.4pp |
| Book value per share (¥) | 275.57 | 293.77 | −6.2% |
| FY2026 guidance — revenue (¥ million) | 22,762 | — | −3.8% |
| FY2026 guidance — operating profit (¥ million) | 3,316 | — | −9.8% |
| FY2026 guidance — ordinary profit (¥ million) | 3,939 | — | −8.7% |
| FY2026 guidance — net profit (¥ million) | 2,193 | — | −10.6% |
| FY2026 guidance — EPS (¥) | 31.69 | — | — |
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.