MEITEC (9744): FY3/26 results: In line; PO unchanged at ¥3,200

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MEITEC (9744): FY3/26 results: In line; PO unchanged at ¥3,200

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MEITEC (9744)

FY3/26 results: In line; PO unchanged at

¥3,200

Reiterate Rating: NEUTRAL | PO: 3,200 JPY | Price: 2,970 JPY

12 May 2026

FY3/26 results: In line; we expect the medium-term plan Equity

target to be missed

FY3/26 operating profit came in at ¥19.9bn (+5.7% YoY, operating margin of 15%),

Key Changesbroadly in line with our estimate of ¥19.4bn and company guidance of ¥20.2bn, giving an

in-line impression. Full-year mid-career hires were 96 at Meitec (MT), below company (¥) Previous Current

guidance and our estimate of 120, and 222 at Meitec Fielders (MF), below the 250 2027E Rev (m) 138,754.0 142,471.5

assumed by both company guidance and our estimate. Billing rates were 2028E Rev (m) 143,405.9 147,857.9

¥6,159/hour/person at MT, up 4.7% YoY, and ¥4,239/hour/person at MF, up 3.6% YoY. In 2029E Rev (m) NA 150,690.3

particular, MT’s rate increase widened from +3.4% in FY3/25, reflecting the company’s 2027E EPS 174.21 180.40

policy of pursuing higher value rather than headcount growth. The company’s new 2028E EPS 188.01 187.80

medium-term plan through FY3/29 sets a target operating profit of ¥23.0bn, but this 2029E EPS NA 192.46

appears difficult to achieve unless there is a significant improvement in the attrition rate

and hiring. Our FY3/29 operating profit estimate is ¥21.6bn, and we expect the company Yusuke Noguchi >>

Research Analyst

to fall short of the target. BofAS Japan

+81 3 6225 8814

Neutral rating reiterated; PO maintained at ¥3,200 yusuke.noguchi@bofa.com

Yoshitaka Nagao >>

Our PO of ¥3,200 is based on our FY3/27 EPS estimate of ¥180.4, to which we apply the Research Analyst

company’s average P/E of 18x over the past two years. We maintain our existing PO. BofAS Japan