DIP Corporation (2379) Q1 2026 earnings summary

Executive summary

• Fiscal year theme is "GO MAJOR" with a focus on new business and initiatives, notably Spot Baitoru, which saw job postings rise 60%–1.6x and workers increase 130%–2.3x year-over-year in Q4 and Q1.

• Major organizational shift to a solution organization model began June 1, marking the largest change in 29 years, aimed at improving salesforce effectiveness and retention.

• AI technologies, including generative AI-powered job search and communication tools, are being leveraged for job matching and internal efficiency, reducing hundreds of thousands of working hours.

• Market share in media services expanded, outpacing overall market growth, especially in logistics and service sectors.

• Net income attributable to owners of parent was ¥2,294 million, down 18.2% year-over-year.

Financial highlights

• Q1 consolidated sales rose 3.3% year-over-year to ¥15,786 million, with sales growth rate accelerating from 1.5% in Q4 last year.

• Operating income declined 16.1% to ¥3,377 million due to ¥1.05 billion in upfront investment for Spot Baitoru promotions and system development.

• Excluding upfront investments, operating profit would have increased 10% year-over-year.

• DX Business segment profit surged 41.1%–41.3% year-over-year.

• Gross profit for the quarter was ¥13,746 million, with a gross margin of approximately 87%.

Outlook and guidance

• Full-year FY'26/2 sales forecast unchanged at ¥60,000 million (+6.4% year-over-year); operating income forecast at ¥12,000 million (-10.5% year-over-year).

• FY'27/2 targets: 8% sales growth and operating income exceeding ¥17 billion, driven by monetization of upfront investments.

• Dividend forecast maintained at ¥95 per share, with a payout ratio of 62% and total return ratio guideline of at least 62%.

• Net income attributable to owners of parent is forecast at ¥8,000 million, down 10.6% year-over-year.

• No changes have been made to the previously announced forecast.