Segue Group Co., Ltd. Raises Earnings Forecast on Strong Software Sales

Segue Group Co., Ltd. Raises Earnings Forecast on Strong Software Sales

Segue Group Co., Ltd. (TSE:3968) has raised its earnings guidance for the fiscal year ending December 2026, citing better-than-expected performance in recurring support services and proprietary software sales.

The company maintained its revenue forecast at JPY 30.0bn but significantly upgraded profit expectations across all metrics. Operating profit rose 13.0% to JPY 2.60bn, while ordinary income (keijo rieki)—a Japan-specific metric capturing non-operating items—increased 13.1% to the same level. Net profit attributable to parent company shareholders climbed 14.0% to JPY 1.60bn, with earnings per share (EPS) rising 17.7% to JPY 45.44/share.

Management attributed the upward revision to stronger-than-anticipated sales of recurring support services and the company’s proprietary RevoWorks software platform. While revenue tracking in line with plan, gross margin expansion from these higher-margin offerings drove the profit lift. The company plans to invest aggressively in growth initiatives during the second half but expects full-year profit to exceed prior guidance.

The revision underscores improving operational leverage in Segue Group’s software-as-a-service (SaaS) and support service segments. The company maintained its dividend policy unchanged, targeting a 50% payout ratio. International investors should note that the ordinary income figure includes financial income and expenses beyond core operations, distinguishing it from operating profit metrics used in Western accounting standards.

Source: Original filing (TDnet) | 日本語版

This article is for informational purposes only and does not constitute investment advice. Always verify against the original filing.