Kyoshin Co., Ltd. FY2026 Outlook: Guidance Points to Rebound in Revenue and Profitability

Kyoshin Co., Ltd. (株式会社京進), a leading provider of educational services in Kyoto and Shiga Prefectures, reported full-year results for the 2026 fiscal year (ending February 2026), showing a decline in revenue and operating profit amid challenging industry conditions. However, management has outlined a more optimistic outlook for the coming year, with projected increases in both revenue and profitability.

Key Numbers (JPY)

Metric FY2026 (Full Year) YoY Change
Revenue JPY 20.3bn N/A
Operating Profit JPY 481M N/A
Ordinary Income JPY 470M N/A
Net Profit JPY 69M N/A
Operating Margin 2.4% N/A
Equity Ratio 17.7% 17.7%

Business Overview Kyoshin operates a network of learning centers, including individual tutoring franchises, Japanese and English conversation classes, and childcare and nursing services. The company is positioned in a highly competitive and evolving market, where demographic shifts and technological innovation are reshaping demand.

Analysis Kyoshin’s full-year revenue declined from JPY 26.455bn in the previous fiscal year to JPY 20.286bn, reflecting the broader impact of declining birth rates and intensified competition in the education sector. Operating profit also fell to JPY 481M from JPY 508M, although ordinary income rose to JPY 470M from JPY 343M, indicating improved cost management. Net profit, however, dropped to JPY 69M from JPY 93M, signaling ongoing profitability challenges.

Despite these headwinds, the company has signaled a turnaround in its outlook. Management has not revised its financial results, and the guidance for the next fiscal year suggests a significant rebound in performance. The guidance includes a projected increase in revenue to JPY 28.505bn, along with higher operating profit (JPY 785M), ordinary income (JPY 558M), and net profit (JPY 200M). These figures represent a marked improvement from the current year’s results.

Next Year Guidance | Metric | FY2027 Guidance (JPY) | YoY Change (vs. FY2026) | |----------------------|------------------------|--------------------------| | Revenue | JPY 28.505bn | N/A | | Operating Profit | JPY 785M | N/A | | Ordinary Income | JPY 558M | N/A | | Net Profit | JPY 200M | N/A |

Revenue target: JPY 28.5bn — ambitious given the current year’s decline, suggesting management is confident in its ability to reverse the trend through market expansion and new business initiatives. The operating profit target implies