AI investment reached the mid-cap integrators
KSK Co., Ltd. (TSE: 9687) published consolidated results for the three months to June 30, 2026 on July 31, 2026 under Japanese GAAP. Revenue rose 9.7% to ¥6,684 million, operating profit 9.2% to ¥923 million and ordinary profit 10.2% to ¥965 million. The operating margin held at 13.8% against 13.9%.
Net profit attributable to owners of the parent rose only 1.1% to ¥649 million, and earnings per share 0.9% to ¥107.08 — a far smaller step than the lines above it, because the year-earlier quarter's net profit had itself surged 335.7%. Comprehensive income edged down 1.0% to ¥688 million.
The company describes an information-services industry in which the rapid advance and practical adoption of AI has expanded corporate demand for system investment aimed at business reform and competitiveness — specifically system development anticipating AI use in operations, data-platform construction and cloud environments, alongside continued spending on information security and IT-infrastructure upgrades. It also names the constraint: securing people with advanced expertise in AI, cloud and cybersecurity, and coping with rising personnel costs.
All three segments grew, and profit grew faster than revenue in two
IT Solutions was the strongest on profit, growing revenue 14.0% to ¥1,575 million and segment profit 23.7% to ¥491 million. System Core grew revenue 13.4% to ¥1,229 million and profit 18.9% to ¥352 million. Network Services, the largest of the three at more than half of group revenue, grew revenue 6.9% to ¥3,878 million and profit 5.5% to ¥999 million — the slowest grower, but still the biggest single contributor to segment profit.
A balance sheet that shrank, and unchanged guidance
Total assets fell 8.7% to ¥23,838 million from the March 31, 2026 year-end while net assets fell only 2.2% to ¥18,201 million — so the equity ratio jumped to 75.5% from 70.4%, a 5.1-point rise in a single quarter. A balance sheet contracting faster than equity is what that combination describes.
Full-year FY3/2027 guidance was left unchanged: revenue of ¥28,100 million (+9.1%), operating profit of ¥3,100 million (+13.1%), ordinary profit of ¥3,300 million (+14.6%) and net profit of ¥2,300 million (+5.4%), for earnings per share of ¥378.92. The annual dividend forecast is ¥190.00, paid entirely at year-end with no interim, up from ¥181.00 for FY3/2026. With ¥923 million of the ¥3,100 million operating-profit target booked, 29.8% is in hand after one quarter — comfortably ahead of a straight-line pace.
| Metric | Q1 FY3/2027 | Q1 FY3/2026 | Change |
|---|---|---|---|
| Net sales (¥ million) | 6,684 | 6,095 | +9.7% |
| Operating profit (¥ million) | 923 | 845 | +9.2% |
| Operating margin | 13.8% | 13.9% | -0.1 pt |
| Ordinary profit (¥ million) | 965 | 876 | +10.2% |
| Net profit attrib. to owners of parent (¥ million) | 649 | 642 | +1.1% |
| Comprehensive income (¥ million) | 688 | 695 | -1.0% |
| EPS (¥) | 107.08 | 106.10 | +0.9% |
| System Core — revenue (¥ million) | 1,229 | 1,084 | +13.4% |
| System Core — segment profit (¥ million) | 352 | 296 | +18.9% |
| IT Solutions — revenue (¥ million) | 1,575 | 1,381 | +14.0% |
| IT Solutions — segment profit (¥ million) | 491 | 397 | +23.7% |
| Network Services — revenue (¥ million) | 3,878 | 3,629 | +6.9% |
| Network Services — segment profit (¥ million) | 999 | 947 | +5.5% |
| Total assets (¥ million) | 23,838 | 26,110 | -8.7% |
| Net assets (¥ million) | 18,201 | 18,609 | -2.2% |
| Equity ratio | 75.5% | 70.4% | +5.1 pt |
| FY3/2027 guidance — revenue (¥ million) | 28,100 | — | +9.1% |
| FY3/2027 guidance — operating profit (¥ million) | 3,100 | — | +13.1% |
| FY3/2027 guidance — ordinary profit (¥ million) | 3,300 | — | +14.6% |
| FY3/2027 guidance — net profit (¥ million) | 2,300 | — | +5.4% |
| FY3/2027 guidance — EPS (¥) | 378.92 | — | — |
| Annual dividend per share (¥) | 190.00 | 181.00 | +5.0% |
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.