Orders grew; the margin did not
transcosmos inc. (TSE: 9715) published consolidated results for the three months to June 30, 2026 on July 31, 2026 under Japanese GAAP. Revenue rose 7.1% to ¥101,163 million, which the company attributes to actively expanding the BPO and CX services it sells to help client companies transform their management and operations, and to the order growth that followed.
Profit moved the other way at every level. Operating profit fell 8.0% to ¥3,386 million — an operating margin of 3.3% against 3.9% — with management citing growth investment and the contraction of a large global contract. Ordinary profit fell further, 17.0% to ¥3,661 million, and net profit attributable to owners of the parent fell 16.3% to ¥2,847 million, for earnings per share of ¥76.00 against ¥90.85. Comprehensive income was the exception, up 228.3% to ¥3,350 million against an unusually low ¥1,020 million base.
Three segments, one of them carrying the profit
The parent company's own outsourcing services grew revenue 4.3% to ¥64,944 million on higher BPO and CX orders, and its segment profit rose 12.8% to ¥2,065 million as higher utilisation and progress in price negotiations improved profitability. That is the one part of the group where profit grew, and it now supplies the majority of group operating profit.
Domestic affiliates grew revenue 18.5% to ¥12,424 million — the fastest of the three — as a BPO subsidiary widened the scope of its contracts, but segment profit fell 11.3% to ¥789 million on lower profitability at a listed subsidiary. Overseas affiliates grew revenue 9.8% to ¥27,447 million on higher sales at the Korean and Greater China subsidiaries, yet segment profit fell 44.4% to ¥533 million — this is where the shrinking large global contract lands.
Balance sheet and unchanged guidance
Total assets fell 2.1% to ¥219,052 million from the March 31, 2026 year-end, a decline of ¥4,812 million driven mainly by lower cash and deposits after debt repayment. Net assets fell 1.5% to ¥137,185 million, yet the equity ratio still edged up to 57.6% from 57.3%, and book value per share eased to ¥3,366.46 from ¥3,423.25.
Full-year FY3/2027 guidance was left unchanged: revenue of ¥410,000 million (+4.1%), operating profit of ¥16,800 million (+1.5%), ordinary profit of ¥17,800 million (−6.2%) and net profit of ¥13,500 million (+3.2%), for earnings per share of ¥360.26. The annual dividend forecast is ¥145.00 — paid entirely at year-end, with no interim — up from ¥140.00 for FY3/2026. With ¥3,386 million of the ¥16,800 million operating-profit target booked, 20.2% is in hand after one quarter, so the unchanged guidance requires the remaining three quarters to more than make up the first quarter's decline.
| Metric | Q1 FY3/2027 | Q1 FY3/2026 | Change |
|---|---|---|---|
| Net sales (¥ million) | 101,163 | 94,439 | +7.1% |
| Operating profit (¥ million) | 3,386 | 3,683 | -8.0% |
| Operating margin | 3.3% | 3.9% | -0.6 pt |
| Ordinary profit (¥ million) | 3,661 | 4,412 | -17.0% |
| Net profit attrib. to owners of parent (¥ million) | 2,847 | 3,404 | -16.3% |
| Comprehensive income (¥ million) | 3,350 | 1,020 | +228.3% |
| EPS (¥) | 76.00 | 90.85 | -16.3% |
| Total assets (¥ million) | 219,052 | 223,865 | -2.1% |
| Net assets (¥ million) | 137,185 | 139,293 | -1.5% |
| Equity ratio | 57.6% | 57.3% | +0.3 pt |
| FY3/2027 guidance — revenue (¥ million) | 410,000 | — | +4.1% |
| FY3/2027 guidance — operating profit (¥ million) | 16,800 | — | +1.5% |
| FY3/2027 guidance — ordinary profit (¥ million) | 17,800 | — | -6.2% |
| FY3/2027 guidance — net profit (¥ million) | 13,500 | — | +3.2% |
| FY3/2027 guidance — EPS (¥) | 360.26 | — | — |
| Annual dividend per share (¥) | 145.00 | 140.00 | +3.6% |
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.