No.1 Co.,Ltd (TSE:3562) FY2026 Forecast: Strong Growth Driven by Cybersecurity Demand and Margin Expansion
No.1 Co.,Ltd (株式会社Ｎｏ.１), a leading developer and seller of information security equipment in Japan, reported robust full-year results for the 2026 fiscal year, driven by rising demand for cybersecurity solutions and improved operational efficiency. The company’s revenue and profitability metrics all rose sharply compared to the previous year, with operating profit and ordinary income showing particularly strong growth.
Key Numbers (JPY bn/M)
| Metric | FY2026 (Actual) | YoY Change |
|---|---|---|
| Revenue | 17.5 | +23.4% |
| Operating Profit | 1.33 | +28.1% |
| Ordinary Income | 1.39 | +34.5% |
| Net Profit | 0.713 | +24.3% |
| Operating Margin | 7.6% | — |
| Equity Ratio | 31.2% | — |
Business Overview No.1 Co.,Ltd specializes in the development and sale of information security equipment, with a focus on business support through IT and management solutions. The company is well positioned in a growing market driven by increased cybersecurity needs and the expansion of IT infrastructure across industries.
Analysis The company’s full-year results reflect a significant acceleration in performance, with all major profitability metrics rising sharply compared to the previous year. Notably, ordinary income (keijo rieki, Japan's recurring profit metric that includes non-operating income and expenses) increased by 34.5%, outpacing revenue growth and highlighting strong cost control and margin expansion.
The operating margin of 7.6% exceeds the industry average of 6.0%, indicating that No.1 Co.,Ltd is achieving higher profitability than its peers. This is likely due to a combination of rising demand for its cybersecurity products and the company’s ability to maintain a high-value product mix. The growth in operating profit (+28.1% YoY) further underscores the company’s ability to convert revenue into profit effectively.
However, the equity ratio has declined sharply from 51.2% to 31.2%, signaling a shift in the company’s capital structure. While this may reflect short-term changes in capital allocation or temporary financial impacts, investors should monitor the long-term implications for solvency and debt management.
Next Year Guidance The company has provided forward-looking guidance for the upcoming fiscal year, with the following targets:
| Metric | FY2027 (Forecast) | YoY Change (vs. FY2026 Actual) |
|---|---|---|
| Revenue | 21.2 | +20.9% |
| Operating Profit | 1.65 | +24.0% |
| Ordinary Income | 1.59 | +14.1% |