TISI (3626.T): Mgmt meeting: Better productivity from generative Al an earnings tailwind, but positive impact will take time to emerge

Research evidence excerpt

TISI (3626.T): Mgmt meeting: Better productivity from generative Al an earnings tailwind, but positive impact will take time to emerge

Equity Research

2 July 2026 | 3:37PM JST

TISI (3626.T): Mgmt meeting: Better productivity from generative AI an

earnings tailwind, but positive impact will take time to emerge

TISI hosted a meeting for sell-side analysts with senior management during trading Chikai Tanaka, CFA

+81(3)4587-9840 |

hours on July 2 (speakers included TISI president Yasushi Okamoto and managing chikai.tanaka@gs.com

Goldman Sachs Japan Co., Ltd.

executive officer Masakazu Kawamura). The discussion centered on the impact of

Yuki Sato

generative AI and the business integration with Intec. Management noted that should +81(3)4587-8536 | yuki.z.sato@gs.com

AI-driven development progress smoothly, generative AI is likely to lead to improved Goldman Sachs Japan Co., Ltd.

profitability—even assuming better productivity feeds through to price cuts—as well

as revenue expansion on the back of higher turnover rates (increase in the number of

projects handled). However, the company does not expect AI-driven development to

contribute meaningfully to full-year earnings until around FY3/29, giving us the

impression it will need more time than expected. We will be watching for the

announcement of the next medium-term plan (from FY3/28), which we expect

around May 2027, for updates on sales synergies from cross-selling with Intec and

progress in AI-driven development.

n Impact of generative AI: As productivity improvement from generative AI

advances, downward pressure on pricing from customers may increase across

the industry. TISI believes that (1) by lowering costs through AI-driven

development and other means, it can improve profitability and absolute profits