TechMatrix (3762) Q1 FY2027 Earnings Deep Dive Report

TechMatrix Corporation’s Q1 FY2027 (April–June 2026) earnings results mark a record-breaking start, with both revenue and profit at every level reaching all-time highs for a first quarter . The company’s long-standing strategy to transition toward a stock-based business model is bearing fruit, demonstrating both a robust earnings foundation and high growth potential.

This report extracts 10 key topics from the disclosed earnings supplementary materials, providing a comprehensive analysis of the overall performance, segment-specific details, order structure, and the company’s strategic positioning in the era of generative AI.

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1. Earnings Highlights: Key Performance Indicators and Record Results

Consolidated results for the first quarter of the fiscal year ending March 2027 showed significant year-on-year growth in both revenue and profit. The company successfully captured business opportunities across all segments, led by its core Information Infrastructure business.

[Why this slide is important]

This slide is the most critical data point, summarizing TechMatrix’s solid management performance and the milestone reached by its stock-based business model for the quarter. Not only did revenue increase by 19.0% YoY to 18,885 million yen and operating profit by 26.4% YoY to 1,606 million yen —both record highs for a Q1—but it also confirms that various KPIs reflecting the quality of the business structure remain at high levels.

Of particular note is that the stock ratio (standalone + PSP) has reached 84.6% . Since the majority of revenue is derived from recurring subscriptions and maintenance/operation services, the company has established a highly predictable earnings structure with minimal quarterly volatility. Furthermore, the number of patients whose images are stored in "NOBORI" in the medical field has reached 74.05 million , with 500 million examination records stored , illustrating the steady expansion of its platform foundation.

Q1 Consolidated P&L Summary (YoY)

• Revenue : 18,885 million yen ( +19.0% / +3,021 million yen YoY )
• Operating Profit : 1,606 million yen ( +26.4% / +335 million yen YoY )
• Operating Margin : 8.5% ( +0.5 percentage points YoY )
• Profit Before Tax : 1,622 million yen ( +26.9% / +344 million yen YoY )
• Profit Attributable to Owners of Parent : 1,060 million yen ( +24.3% / +207 million yen YoY )

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2. Segment Performance and Factor Analysis

TechMatrix’s business is composed of three segments: "Information Infrastructure," "Application Services," and "Medical Systems." All segments achieved revenue growth this quarter.

① Information Infrastructure (73.6% of total revenue)

• Revenue : 13,905 million yen ( +20.9% YoY )
• Operating Profit : 1,492 million yen ( +19.1% YoY )
• Overview : In addition to steady demand for cloud-based security products, cross-selling of AI-driven SOC (Security Operation Center) automation solutions progressed. The accumulation of multi-year subscription contracts and improved operating profits at group companies (Firmus, Cross-Head, OCH) contributed significantly to the growth in revenue and profit.

② Application Services (13.6% of total revenue)

• Revenue : 2,574 million yen ( +11.8% YoY )
• Operating Profit : 47 million yen (compared to a 44 million yen loss in the same period last year; a turnaround of +92 million yen )
• Overview : Demand for the cloud-based contact center CRM system "FastHelp" remained very strong. The increase in the stock ratio within total revenue, driven by new order intake, combined with effective control of SG&A expenses relative to revenue growth, contributed to the return to profitability. By sector, Business Solutions (BS) and Contact Center (CRM) saw significant expansion.

③ Medical Systems (12.7% of total revenue)

• Revenue : 2,405 million yen ( +16.7% YoY )
• Operating Profit : 66 million yen ( +6.2% YoY )
• Overview : Revenue grew steadily due to a combination of medical information cloud services, the PHR app "NOBORI," and renewal projects for on-premise Medical Image Management Systems (PACS). Despite the inclusion of losses from Medomain (currently in an investment phase) and increased personnel and investment costs, the expansion of cloud service revenue absorbed these impacts, maintaining profit growth YoY.

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3. Order Intake, Order Backlog, and Stock Business Growth

Order intake and order backlog, which serve as leading indicators for performance, also showed strong momentum.

• Consolidated Order Intake : 22,913 million yen ( +11.5% YoY )
• Consolidated Order Backlog : 109,545 million yen ( +18.0% YoY )

In particular, the fact that the consolidated order backlog has surpassed the 100 billion yen mark (exceeding 109.5 billion yen) is a crucial change that underpins long-term future performance.

[Why this slide is important]

This slide demonstrates that all three segments recorded double-digit growth in order backlog YoY . It is clear at a glance that the growth in the total backlog is not due to a bias in a specific business, but rather the result of company-wide accumulation of subscription business (strengthening of the stock business).

By segment, Information Infrastructure stands at 81,229 million yen (+16.5% YoY) , Application Services at 8,237 million yen (+25.6% YoY) , and Medical Systems at 20,077 million yen (+21.5% YoY) . Looking specifically at the breakdown of the order backlog for TechMatrix standalone (see slide 14), long-term contracts (to be recognized as revenue after more than one year) account for 52.9% , confirming that a business structure capable of generating stable cash flow over the long term is firmly established.

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4. Strengths in the AI Era and Resilience Against the "Anthropic Shock"

Recently, with the announcement of autonomous AI agents by Anthropic (USA), there has been debate regarding the "end of the traditional SaaS model" or the "decline of the SI business," often referred to as the "Anthropic Shock." However, TechMatrix maintains an unshakable competitive advantage even in the face of this shift.

[Why this slide is important]

This slide is a highly valuable explanatory document that logically organizes how TechMatrix’s business portfolio is resilient to the market-feared "risk of AI disrupting the software/IT market," and how it is actually structured to turn AI into a tailwind.

Against the four commonly cited risks (① End of SaaS user-ID billing, ② Extinction of low-value-added SI, ③ Opening of legacy system maintenance, ④ Direct substitution of digital labor), the company’s business is positioned as follows:

1. Information Infrastructure (Security) : Control and defense via security appliances cannot be replaced by AI ; conversely, the sophistication of attacks using AI increases the demand for security operations (SOC) and AI-specific security.
2. SE Business (Software Quality Assurance) : In fields like automotive (ISO 26262, etc.), strict safety and accountability are required, making replacement by AI alone impossible. The acceleration of AI-driven development actually increases "quality risks," dramatically expanding the demand for the verification and testing in which the company excels.
3. CRM Business : SLA compliance and complex inquiries requiring approval necessitate human involvement. By shifting from simple ID-based billing to a "transaction-volume-based billing model," the company enhances its value as a data foundation.
4. Medical Systems : Improvements in processing speed and increases in data volume due to AI directly translate into billing based on processing volume/capacity (increased revenue).

As such, the company’s portfolio contains no "low-value-added areas that will be extinguished by AI," and it is emphasized that the advancement of AI is structured to be sublimated directly into the company’s own growth opportunities.

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5. Full-Year Earnings Forecast and Shareholder Return Policy

Full-Year Consolidated Earnings Forecast for FY2027 (FY2026)

The company has maintained its initial plan announced in May 2026, showing steady progress as of the first quarter.

• Revenue : 81,800 million yen ( +14.0% / +10,067 million yen YoY )
• Operating Profit : 8,200 million yen ( +5.7% / +440 million yen YoY )
• Operating Margin : 10.0%
• Profit Attributable to Owners of Parent : 5,380 million yen ( +3.9% / +202 million yen YoY )

Shareholder Returns (11th Consecutive Dividend Increase Planned)

The company plans to increase its dividend for the 11th consecutive year .

• FY2027 Forecast Annual Dividend : 54.0 yen per share (Interim 22.0 yen, Year-end 32.0 yen)
• Previous Year (FY2026) Actual : 52.0 yen (Interim 21.0 yen, Year-end 31.0 yen)
• Based on continuous earnings growth, the company maintains a stable return stance, mindful of payout ratios and DOE (Dividend on Equity).

Capital Allocation Policy (Mid-term policy announced in October 2025)

The company will execute balanced capital allocation using operating cash flow generated over the three-year period from FY2025 to FY2027.

• Growth Investment : 10–15 billion yen (Recruitment/training, R&D, strengthening proprietary solutions)
• M&A, etc. : 10–15 billion yen (Acquisition of cutting-edge technology, expertise, and human resources)
• Dividends : 5–7 billion yen (Expansion of shareholder returns)
• Working Capital : 25–30 billion yen (Funding required for the expansion of large-scale/multi-year contracts)

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Summary

TechMatrix’s Q1 FY2027 earnings results show record-breaking performance in both revenue and profit, supported by a robust consolidated order backlog of 109.5 billion yen and a stock ratio of 84.6% . With the expansion of security demand, the penetration of cloud PACS and NOBORI, and the return to profitability of FastHelp, each business is operating in synergy. Furthermore, the company has established a position that turns the structural change of generative AI into a tailwind. It is an earnings report that clearly demonstrates a solid earnings foundation and a growth story aimed at sustainable corporate value enhancement.