Serverworks Co., Ltd. (TSE: 4434), a Japanese cloud-integration specialist focused on Amazon Web Services, reported consolidated results for the first quarter of the year ending February 28, 2027 under Japanese GAAP. Revenue rose 29.4% to ¥11,933 million, operating profit nearly doubled, up 99.6% to ¥398 million, ordinary profit climbed 92.0% to ¥391 million, and net profit attributable to owners of the parent jumped 185.1% to ¥324 million from a year-earlier trough. Basic earnings per share were ¥43.81, up from ¥14.70.
AI demand supercharges the cloud market
The company said Japan's cloud market remains on a steep growth path, with the rapid advance of generative-AI models — including what it described as the early-2026 "Anthropic shock" — sharply lifting demand for the compute resources and data platforms that AI workloads require. As a pure-play cloud business, Serverworks positioned that shift as a tailwind, deepening its strategic collaboration with AWS around consulting, platform build-out, operation and security, and rolling out new generative-AI services. Consolidated subsidiary G-gen continued to expand, adding to group scale.
Margin recovery after a weak base
The near-doubling of operating profit came against an unusually soft year-earlier quarter, when profit had fallen sharply. Comprehensive income rose 33.1% to ¥522 million. Total assets stood at ¥21,895 million and net assets at ¥10,085 million, for an equity ratio of 46.0%.
Full-year guidance unchanged
Serverworks maintained its full-year FY2/2027 forecast, guiding revenue of ¥47,184 million (+17.9%), operating profit of ¥1,310 million (+109.5%), ordinary profit of ¥1,398 million (+82.5%) and net profit of ¥904 million, with EPS of ¥117.88. The company plans an annual dividend of ¥30.00, up from ¥25.00.
| Metric | Q1 FY2/2027 | Q1 FY2/2026 | YoY |
|---|---|---|---|
| Revenue (¥ billion) | 11.93 | 9.22 | +29.4% |
| Operating profit (¥ million) | 398 | 199 | +99.6% |
| Ordinary profit (¥ million) | 391 | 204 | +92.0% |
| Net profit attrib. to owners (¥ million) | 324 | 113 | +185.1% |
| Basic EPS (¥) | 43.81 | 14.70 | +198.0% |
| FY27 operating profit guidance (¥ billion) | 1.31 | 0.63 | +109.5% |
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.