Nomura Research Institute (4307) Q1 2027 earnings summary

Executive summary

• Revenue for the three months ended June 30, 2026, rose 7.5% year-over-year to JPY 210,455 million, driven by robust project activity in Financial IT and IT Infrastructure, with AI-driven modernization projects leading growth.

• Operating profit increased 12.0% to JPY 41,711 million, with an operating margin of 19.8% (up 0.8 points year-over-year).

• Profit attributable to owners of parent grew 12.4% to JPY 29,214 million, and basic EPS was JPY 51.42 (up from JPY 45.43).

• The group advanced its Medium-term Management Plan (2026-2028), focusing on AI-driven business transformation, digital security, and social co-creation services.

Financial highlights

• Gross profit increased 10.0% year-over-year to JPY 78,713 million, and gross profit margin rose to 37.4% from 36.6% YoY.

• EBITDA margin improved to 26.0% (up 0.6 points year-over-year).

• Free cash flow surged 215.0% YoY to JPY 97,787 million.

• Cash and cash equivalents at period end were JPY 131,784 million, down JPY 44,492 million from the prior year.

Outlook and guidance

• Full-year revenue forecast for FY ending March 31, 2027, is JPY 850 billion (+4.3% YoY), operating profit at JPY 175 billion (+11.7% YoY), and EPS at JPY 209.46 (+9.3% YoY).

• Dividend per share forecast at JPY 84.00, up JPY 7.00 YoY; payout ratio targeted at 39.5%.

• Revenue and operating profit are progressing slightly above plan; full-year earnings forecast remains unchanged.