CrossCat Co., Ltd. (TSE: 2307), an independent Japanese systems-integration and IT services company serving credit, financial, public-sector, manufacturing, telecom and retail clients, reported consolidated results for the first quarter of the fiscal year ending March 2027 — the three months from April 1 to June 30, 2026 — under Japanese GAAP. Net sales rose 17.4% to ¥4,645 million, operating profit jumped 41.6% to ¥484 million and ordinary profit climbed 40.7% to ¥520 million. Net profit attributable to owners of the parent advanced a more modest 7.5% to ¥325 million, with basic earnings per share of ¥23.25 against ¥21.55 a year earlier.
Credit and lottery contracts power systems integration
The systems-integration (SI) business, which supplies roughly six-sevenths of group revenue, lifted net sales 17.1% to ¥4,014 million and gross profit 24.8% to ¥1,041 million. Credit-sector work grew 29.6% on the back of a large prime contract, financial-sector revenue rose 17.9% as insurance-agency system projects performed strongly, and work tied to public sports betting and the sports-promotion lottery surged 205.9% after a large contract win. Group gross profit rose 18.5% to ¥1,139 million and the cost-of-sales ratio improved by 0.2 percentage points.
DX revenue grows but margin compresses
The digital-transformation (DX) segment grew net sales 19.1% to ¥630 million as cloud-related services held up on firm DX demand and orders for data-utilisation platforms expanded. Gross profit, however, fell 22.9% to ¥97 million, reflecting up-front investment to scale the cloud business and one-off additional costs on a specific project. That drag, together with the absence of the prior year's below-the-line gains, is why net profit rose only 7.5% despite the 42% operating-profit jump; comprehensive income was essentially flat at ¥323 million, down 0.3%.
Balance sheet strengthens
Total assets stood at ¥9,463 million at the end of June, down from ¥10,846 million at the March fiscal year-end, while net assets edged down to ¥6,460 million from ¥6,656 million. With the balance sheet contracting faster than equity, the equity ratio improved sharply to 68.3% from 61.4%.
Final year of "Growing Value 2026"
FY3/27 is the closing year of the medium-term plan "Growing Value 2026," launched in April 2024 and built on five basic strategies: shifting to a value-delivery model, expanding asset-based business, strengthening the customer base, strengthening people and organisational capability, and group management that leverages each company's strengths. Management frames the plan under a vision of "sustainable corporate-value growth and contribution to society as an independent information-services company." CrossCat has posted record revenue and record profit at every level for five consecutive years and cleared the plan's profitability financial targets and KPIs in its second year. Demand for IT services remains firm on DX investment using cloud and generative AI, though a shortage of IT talent continues to constrain supply.
Guidance and dividend left unchanged
Despite the strong start, the company kept its forecasts intact. First-half guidance calls for net sales of ¥8,800 million (+7.0%), operating profit of ¥938 million (+6.5%), ordinary profit of ¥946 million (+3.5%) and net profit of ¥640 million (−3.8%), with EPS of ¥45.73. For the full year it guides net sales of ¥17,900 million (+3.4%), operating profit of ¥2,150 million (+6.8%), ordinary profit of ¥2,190 million (+7.2%) and net profit of ¥1,540 million (+1.9%), with EPS of ¥110.03. The annual dividend forecast is unchanged at ¥39.00, paid as a year-end dividend only, up from ¥37.00 for FY3/26.
| Metric | Q1 FY3/27 | Q1 FY3/26 | YoY |
|---|---|---|---|
| Net sales (¥ million) | 4,645 | 3,957 | +17.4% |
| Gross profit (¥ million) | 1,139 | 961 | +18.5% |
| Operating profit (¥ million) | 484 | 342 | +41.6% |
| Ordinary profit (¥ million) | 520 | 369 | +40.7% |
| Net profit attrib. to owners (¥ million) | 325 | 302 | +7.5% |
| Basic EPS (¥) | 23.25 | 21.55 | +7.9% |
| SI segment — net sales (¥ million) | 4,014 | 3,428 | +17.1% |
| SI segment — gross profit (¥ million) | 1,041 | 834 | +24.8% |
| DX segment — net sales (¥ million) | 630 | 529 | +19.1% |
| DX segment — gross profit (¥ million) | 97 | 126 | -22.9% |
| FY3/27 guidance — net sales (¥ million) | 17,900 | — | +3.4% |
| FY3/27 guidance — operating profit (¥ million) | 2,150 | — | +6.8% |
| FY3/27 guidance — net profit (¥ million) | 1,540 | — | +1.9% |
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.