SAKURA Internet Inc. (TSE: 3778), the Osaka-based cloud and internet-infrastructure provider that operates Japan's largest data-centre campus at Ishikari in Hokkaido, reported consolidated results for the first quarter of the year to March 2027 (1 April – 30 June 2026) under Japanese GAAP. Revenue rose 48.6% to ¥11,134 million, which the company described as a record for a first quarter. Operating profit was ¥1,230 million, against an operating loss of ¥457 million a year earlier; ordinary profit was ¥1,258 million (from a ¥438 million ordinary loss); and profit attributable to owners of the parent was ¥855 million (from a ¥324 million loss). Basic earnings per share were ¥21.38, versus a loss per share of ¥8.11. Comprehensive income was ¥861 million, against negative ¥277 million.
GPU revenue overtakes the cloud business
The swing was driven almost entirely by one service line. GPU infrastructure services revenue rose 245.9% to ¥4,718 million, which the company attributed to the NVIDIA H200 and B200 accelerators it added last fiscal year and to high utilisation of its existing H100 fleet. That line is now larger than the core cloud business: cloud services revenue rose 7.5% to ¥3,975 million on steady growth of the "Sakura no Cloud" platform. Physical infrastructure services fell 11.7% to ¥709 million as housing and dedicated-server usage declined, while other services rose 6.4% to ¥1,733 million, helped by large contract wins at group companies. The group reports a single business segment, internet infrastructure.
The capex bet turns
The result marks a clear inflection from the picture JapanStockPulse reported in April, when the company closed FY3/2026 with a full-year operating loss of ¥403 million as roughly ¥24.6 billion of GPU-cloud capital spending pulled depreciation forward faster than revenue arrived. Depreciation is still climbing — it reached ¥2,950 million in the quarter, up from ¥1,535 million a year earlier — and management noted that costs rose on aggressive investment in GPUs and in headcount. This time, though, revenue growth more than absorbed them.
Management framed the demand backdrop as steadily expanding generative-AI and cloud consumption, with the cloud and internet-infrastructure market it serves continuing to grow on legacy-system modernisation and wider AI adoption. Alongside its existing customer base, the group said it is winning new customers on the back of its formal adoption as a Government Cloud provider and the expansion of its generative-AI services, positioning itself as a one-stop provider spanning systems integration, development, cloud and internet infrastructure, maintenance, operations and customer support.
Ishikari build-out keeps the balance sheet expanding
Total assets grew 6.2% to ¥87,546 million from ¥82,451 million at the March year-end, an increase of ¥5,095 million that the company attributed mainly to tangible fixed assets from the expansion of Ishikari data-centre infrastructure and to cash held against those payments. Total liabilities rose 8.5% to ¥56,557 million, reflecting borrowings and lease obligations taken on for the same build-out. Net assets increased 2.2% to ¥30,989 million on retained earnings, but the equity ratio slipped to 35.1% from 36.5% as liabilities grew faster. No quarterly cash-flow statement was prepared for the period.
Guidance revised after the quarter beat plan
Because first-quarter results progressed ahead of the original forecast, the company revised both its half-year and full-year projections. For the first half it now guides revenue of ¥22,500 million (+43.9%), operating profit of ¥2,200 million, ordinary profit of ¥2,200 million and net profit of ¥1,400 million, with EPS of ¥34.97. For the full year it guides revenue of ¥45,500 million (+28.9%), operating profit of ¥2,500 million, ordinary profit of ¥2,300 million and net profit of ¥1,500 million (+594.4%), with EPS of ¥37.46. The shape of that guidance is notably back-end cautious: with ¥1,230 million already booked in the first quarter, the full-year operating-profit target implies roughly ¥1,270 million across the remaining nine months — consistent with further depreciation from the GPU fleet landing through the rest of the year.
The dividend forecast was left unchanged. The company plans an annual dividend of ¥5.50 for FY3/2027 (¥0.00 interim plus ¥5.50 at year-end), up from the ¥5.00 paid for FY3/2026.
| Metric | Q1 FY3/2027 | Q1 FY3/2026 | YoY |
|---|---|---|---|
| Revenue (¥ million) | 11,134 | 7,492 | +48.6% |
| Operating profit (¥ million) | 1,230 | −457 | swing to profit |
| Ordinary profit (¥ million) | 1,258 | −438 | swing to profit |
| Profit attrib. to owners (¥ million) | 855 | −324 | swing to profit |
| Basic EPS (¥) | 21.38 | −8.11 | swing to profit |
| Cloud services revenue (¥ million) | 3,975 | — | +7.5% |
| GPU infrastructure revenue (¥ million) | 4,718 | — | +245.9% |
| Physical infrastructure revenue (¥ million) | 709 | — | −11.7% |
| Other services revenue (¥ million) | 1,733 | — | +6.4% |
| Depreciation (¥ million) | 2,950 | 1,535 | ~1.9× higher |
| Total assets (¥ million) | 87,546 | 82,451 | +6.2% |
| Equity ratio | 35.1% | 36.5% | −1.4pp |
| FY3/2027 revenue guidance (¥ million) | 45,500 | — | +28.9% |
| FY3/2027 net profit guidance (¥ million) | 1,500 | — | +594.4% |
| FY3/2027 annual dividend forecast (¥) | 5.50 | 5.00 | +10.0% |
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.