Globing Lifts Revenue 39% to ¥11.5 Billion, Declares First Dividend and Moves to IFRS as AI Unit Turns Profitable

Globing Inc. (TSE: 277A) reported consolidated results for the fiscal year ended May 2026 (June 1, 2025 – May 31, 2026) under Japanese GAAP. Revenue rose 39.4% to ¥11,512 million, operating profit 47.9% to ¥4,142 million and ordinary profit 47.7% to ¥4,111 million. Net profit attributable to owners of the parent climbed 72.6% to ¥3,051 million, with earnings per share of ¥107.17 against ¥64.50 a year earlier and diluted EPS of ¥96.84. Comprehensive income rose 73.3% to ¥3,081 million. The growth comes on top of an exceptional prior year in which revenue nearly doubled, and it lifted the operating margin to 36.0% from 33.9% — an unusually high level even for a listed strategy consultancy. Return on equity stayed elevated at 44.2%, though below the 48.8% of FY5/2025 as the equity base expanded.

Consulting engine: mid-career hiring and long-term "Joint Initiative" accounts

The Consulting segment, which now accounts for the overwhelming majority of the business, generated external revenue of ¥11,107,797 thousand, up 35.2%, and segment profit of ¥5,051,498 thousand, up 34.6%. Management attributed the expansion to sustained mid-career recruitment of consultants, new client acquisition and the deepening of existing engagements. A particular driver was growth in what Globing calls JI (Joint Initiative) projects — programmes run with strategic accounts that are designed to build long-term, multi-year relationships rather than one-off advisory mandates. AI-related work billed through the consulting practice, including support for AI-enabled business transformation, also expanded during the year. Reporting segments were redefined in FY5/2026 and prior-year figures have been restated on the new basis, so the growth rates are comparable.

AI segment swings to profit as three co-developed products advance

The smaller AI segment was the standout in percentage terms. External revenue jumped 856.8% to ¥405,047 thousand and the unit posted segment profit of ¥234,270 thousand, reversing a segment loss of ¥101,862 thousand a year earlier. During the year Globing co-developed three products with major client companies: a spend-intelligence suite, a planning-support AI agent branded "Globing-kun", and an AI minutes and meeting-enhancement agent called "AI Gijicon", advancing each through proof-of-concept and requirements definition. The scope of consolidation narrowed by one company during the year, with X-AI.Labo Inc. removed. Macroeconomic conditions were mixed — Japan's economy continued a gradual recovery while high consumer prices and currency swings weighed on private consumption, and escalating US tariffs raised concerns about a global slowdown — but demand for DX support stayed firm, with consulting requirements growing around operational optimisation and generative-AI implementation.

Balance sheet strengthens; buybacks and time deposits drive cash out

Total assets rose ¥2,182,011 thousand to ¥10,949 million, led by cash and deposits up ¥1,081,451 thousand, contract assets up ¥427,885 thousand, lease deposits up ¥223,568 thousand, tangible fixed assets up ¥220,159 thousand and prepaid expenses up ¥159,170 thousand, partly offset by a ¥193,065 thousand decline in accounts receivable. Liabilities were almost static at ¥2,904,385 thousand, up just ¥6,619 thousand, as higher accrued expenses (+¥326,919 thousand), bonus provisions (+¥147,564 thousand) and asset retirement obligations (+¥87,077 thousand) were offset by a ¥423,520 thousand drop in income taxes payable. Net assets grew ¥2,175,392 thousand to ¥8,045 million on retained earnings of ¥3,051,788 thousand, lifting the equity ratio to 73.5% from 65.6% and book value per share to ¥282.12 from ¥200.22. Operating cash flow was ¥2,952 million (prior year ¥3,097,971 thousand), with pre-tax profit of ¥4,111,586 thousand and higher accrued expenses offset by ¥1,546,547 thousand of income taxes paid and a ¥210,061 thousand build in trade receivables and contract assets. Investing outflows widened to ¥2,553 million from ¥448,153 thousand, dominated by ¥2,000,000 thousand placed into time deposits plus ¥240,930 thousand of deposits for office expansion, ¥223,481 thousand of tangible asset purchases and ¥103,404 thousand of intangibles. Financing swung to a ¥1,328 million outflow from a ¥2,574,100 thousand inflow, reflecting ¥900,548 thousand of treasury share buybacks and ¥410,874 thousand spent acquiring subsidiary shares without a change in the consolidation scope. Cash and equivalents ended the year at ¥5,693 million, down ¥918,548 thousand. Shares issued were unchanged at 28,728,000, with 211,408 treasury shares held at year-end against none a year earlier; per-share data reflect two 1-for-5 stock splits carried out on September 20, 2024 and March 1, 2025.

First dividend in the company's history

Having paid nothing since its listing on the TSE Growth Market on November 29, 2024, Globing declared a year-end dividend of ¥16.10 per share for FY5/2026 — its first ever — with payments starting August 13, 2026. No interim dividend was paid, so the annual figure is also ¥16.10, representing total dividends of ¥459 million, a consolidated payout ratio of 15.0% and a dividend-on-equity ratio of 5.7%. For FY5/2027 the company guides to an interim dividend of ¥14.20 and a year-end dividend of ¥21.40, for an annual ¥35.60 — more than double the payout just declared — with the consolidated payout ratio stepping up from 15.0% to 30.0%. That is a clear signal that shareholder returns are being scaled alongside growth. The annual general meeting is scheduled for August 27, 2026, with the annual securities report to be filed on August 26.

Guidance rebased on IFRS: ¥16.1 billion of revenue targeted

From the FY5/2026 annual securities report Globing will voluntarily adopt IFRS in place of Japanese GAAP. Because the coming year's plan is drawn up on the new basis, the company presents FY5/2027 guidance without year-on-year percentage comparisons against the J-GAAP results just reported. On an IFRS basis it targets revenue of ¥16,100 million, operating profit of ¥4,830 million, pre-tax profit of ¥4,830 million and profit attributable to owners of the parent of ¥3,381 million, for basic EPS of ¥118.55. Taken at face value against the J-GAAP figures just reported, that plan implies roughly 40% further revenue growth and a modest step-up in operating profit, with the margin easing as the company continues to invest in headcount and AI product development. Investors comparing the two years should note that the accounting change alone can move reported figures, so the guidance is best read as a standalone IFRS baseline rather than as a like-for-like extension of the FY5/2026 results. Globing is led by Representative Director and CEO Kohei Tanaka, with Hideaki Tatebayashi as CFO.

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.