Soliton Systems (3040) Q2 2026 earnings summary

Executive summary

• Revenue and all profit indicators reached record highs for the interim period, driven by strong sales of proprietary products and services, especially in IT security.

• Net sales for the six months ended June 30, 2026, rose 15.1% year-over-year to ¥10,022 million, with operating profit up 124.0% to ¥1,777 million and profit attributable to owners of parent up 150.8% to ¥1,447 million.

• Comprehensive income increased 173.8% year-over-year to ¥1,439 million for the period.

• Upward revision of full-year guidance, expecting to achieve medium-term targets one year ahead of schedule.

Financial highlights

• Interim revenue: ¥10,022 million (+15.1% YoY); gross profit: ¥5,018 million (+29.9% YoY); gross margin: 50.1%.

• Operating profit: ¥1,777 million (+124.0% YoY); operating margin: 17.7%.

• Ordinary profit: ¥1,882 million (+140.8% YoY); net profit attributable to shareholders: ¥1,447 million (+150.8% YoY).

• Basic earnings per share for the period was ¥78.06, compared to ¥31.13 in the prior year.

• Equity-to-asset ratio improved to 52.7% from 50.5% at year-end 2025.

Outlook and guidance

• Full-year 2026 forecast: net sales of ¥22,300 million (+12.8% YoY), operating profit of ¥3,900 million (+37.1%), ordinary profit of ¥3,950 million (+32.7%), and profit attributable to owners of parent of ¥2,670 million (+16.2%).

• Basic earnings per share for the full year forecasted at ¥144.01.

• Annual dividend forecast increased from ¥60 to ¥72 per share, marking the seventh consecutive year of dividend growth.

• Aims to achieve 2027 medium-term plan targets by 2026.