Future Corporation Grows H1 Profit 13% — Then Cuts Its Year-End Dividend to Zero

AI is changing what clients buy

Future Corporation (TSE: 4722) published consolidated first-half results for FY12/2026 on July 29, 2026, covering January 1 to June 30, 2026 under Japanese GAAP. Revenue rose 7.5% to ¥38,322 million, EBITDA 3.2% to ¥9,045 million, operating profit 3.8% to ¥7,379 million and net profit attributable to shareholders 13.0% to ¥5,165 million. Earnings per share reached ¥58.24 against ¥51.58.

Management's read of the market is unusually pointed. It argues that the rapid spread of generative AI is changing how companies build systems and where they put IT budgets, producing a qualitative shift in demand for conventional development and general-purpose IT services — and that a sorting is likely between firms whose generic services AI can replace and firms that use AI to offer something new. Future positions itself as the latter, aiming to be, in its own phrase, the number-one company at putting AI into social use.

A banking-system win anchors the core

IT Consulting & Services lifted revenue 9.1% to ¥34,660 million and segment profit 4.3% to ¥7,580 million. The anchor is Future Architect's cloud-based next-generation core banking system, newly selected by SBI Shinsei Bank, whose design phase is progressing as planned; grand-design engagements for management reform also started at trading houses, beverage makers and other industries. On the AI side the company launched a FutureBANK AI HUB tied to its FutureBANK lending system and opened a research unit, Future AI Science Laboratories, to bridge frontier AI research and commercial deployment.

Within the segment the subsidiaries diverged. Revamp grew revenue on global-expansion and platform work in DX plus group synergies, but profit fell as hiring costs rose. Future In Space grew revenue on new development projects but also lost profit to recruitment spending. FutureOne and Future Artisan both grew revenue and profit — the former on its InfiniOne package in industry-specific sales including steel, the latter on PLM and BOM projects plus AI-driven efficiency. Future Secure Wave was the exception, with revenue and profit both down as some orders slipped into the second half.

The small segment finally turns

Business Innovation saw revenue fall 5.9% to ¥3,645 million but swung from a ¥67 million operating loss to ¥67 million of profit. YOCABITO cut revenue by curating its product range but improved gross margin through a shift to higher-profitability lines and lower fixed costs. Tokyo Calendar grew on advertising, events and its Tokyo Calendar Date online service; Livlits grew on systems for sports teams and theme parks, new work with professional baseball and J.League clubs, and the commercialisation of a data-measurement service for amateur teams. Curiosity fell as luxury-hotel interior projects were cancelled or delayed by construction-cost inflation.

A strong balance sheet — and a dividend cut

Total assets were nearly flat at ¥97,702 million, up ¥210 million. Net assets rose 5.9% to ¥66,437 million, lifting the equity ratio 3.6 points to 68.0% and book value per share to ¥748.73 from ¥707.69.

Full-year guidance is unchanged: revenue of ¥80,600 million (+6.1%), EBITDA of ¥21,200 million (+8.2%), operating profit of ¥17,500 million (+8.2%) and net profit attributable to shareholders of ¥11,800 million (+0.7%), for earnings per share of ¥133.05.

The dividend went the other way. The interim dividend of ¥24.00 per share — up from ¥23.00 — will be paid from September 14, but the company revised its year-end dividend forecast to ¥0.00, published in a separate notice the same day. That leaves the annual dividend at ¥24.00 against ¥46.00 for FY12/2025, a 47.8% reduction. The earnings release itself gives no reason and refers readers to that notice.

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.