AI drives a profit surge
Serverworks Co., Ltd. (TSE: 4434) reported consolidated results for the first half of FY2/2027, March 1 to August 31, 2026, on October 15, 2026 under Japanese GAAP. Net sales rose 32.0% to ¥24,731 million and gross profit 63.6% to ¥2,614 million. Operating profit climbed to ¥924 million from ¥90 million and ordinary profit to ¥991 million from ¥121 million. Net profit attributable to owners of the parent was ¥806 million, or ¥108.67 per share, against a ¥903 million loss in the year-earlier half, which carried ¥843 million of special losses.
The company says rapid advances in generative AI, including what it called the Anthropic shock in early 2026, are a strong tailwind for a pure cloud business, since AI needs vast computing resources and robust data platforms. Enquiries about AI projects have surged; it has gained AWS's AI competency, signed a reseller agreement with Anthropic, PBC, and says it has the most AWS Top Engineers in Japan in the AI and security categories. Subsidiary G-gen is growing its Google Cloud business.
Sales by service
The group reports a single cloud segment. Resale of AWS and other cloud usage, which makes up most of sales, rose 32.9% to ¥22,319 million, as large customers' AWS spending grew, accounts increased and bigger integration projects brought larger cloud bills, alongside partner funds from AWS and Google; the company has also taken on more strategically discounted deals to win accounts. Cloud integration sales grew 28.4% to ¥1,387 million on migrations from on-premises systems, and managed services (MSP), its most profitable line, rose 19.3% to ¥1,005 million.
Balance sheet and cash flow
Total assets rose to ¥24,867 million from ¥20,258 million at the end of February, as advance payments, receivables and investment securities grew, and net assets to ¥11,166 million, helped by gains on securities holdings; the equity ratio eased to 44.8% from 48.0%. Operating cash flow was ¥1,814 million, and cash and equivalents ended the half at ¥7,036 million.
Revised outlook and dividend
Serverworks revised its FY2/2027 forecast on the same day to net sales of ¥51,995 million (+30.0%), operating profit of ¥1,665 million (+166.3%), ordinary profit of ¥1,852 million (+141.8%) and net profit of ¥1,538 million. It set an interim dividend of ¥15, payable from November 11, and plans a ¥15 year-end payment, for an annual total of ¥30 against ¥25.
| Metric | H1 FY2/2027 | H1 FY2/2026 | Change |
|---|---|---|---|
| Net sales (¥ million) | 24,731 | 18,736 | +32.0% |
| Gross profit (¥ million) | 2,614 | 1,597 | +63.6% |
| Operating profit (¥ million) | 924 | 90 | +922.0% |
| Ordinary profit (¥ million) | 991 | 121 | +718.5% |
| Net profit attrib. to owners of parent (¥ million) | 806 | −903 | loss to profit |
| EPS (¥) | 108.67 | −117.08 | loss to profit |
| Comprehensive income (¥ million) | 1,553 | −874 | loss to profit |
| Cloud integration — revenue (¥ million) | 1,387 | — | +28.4% |
| Resale — revenue (¥ million) | 22,319 | — | +32.9% |
| Managed services (MSP) — revenue (¥ million) | 1,005 | — | +19.3% |
| Total assets (¥ million) | 24,867 | 20,258 | +22.8% |
| Net assets (¥ million) | 11,166 | 9,735 | +14.7% |
| Equity ratio | 44.8% | 48.0% | −3.2 pt |
| FY2/2027 guidance — revenue (¥ million) | 51,995 | — | +30.0% |
| FY2/2027 guidance — operating profit (¥ million) | 1,665 | — | +166.3% |
| FY2/2027 guidance — ordinary profit (¥ million) | 1,852 | — | +141.8% |
| FY2/2027 guidance — net profit (¥ million) | 1,538 | — | n.m. |
| Annual dividend per share (¥) | 30.00 | 25.00 | +20.0% |
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.