Jun Q Results: OPM Improvement Drives Earnings Beat; Cloud KPIs Remain Strong

Research evidence excerpt

Jun Q Results: OPM Improvement Drives Earnings Beat; Cloud KPIs Remain Strong

Update

July 22, 2026 08:03 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MOBIC Business Consultants (4733) | Japan Luyuan Yang, CFA

Equity Analyst

Jun Q Results: OPM Luyuan.Yang@morganstanleymufg.comTetsuro Tsusaka, CFA +81 3 6836-8423

Tetsuro.Tsusaka@morganstanleymufg.com +81 3 6836-8412

Improvement Drives Earnings Keiji Nishimura

Research Associate

Keiji.Nishimura@morganstanleymufg.com +81 3 6836-8424

Beat; Cloud KPIs Remain Strong

AlphaSignals Earnings Reaction

Strengthens our thesis Modest upside Modest revision higher

Impact to our thesis Financial results versus consensus Direction of next 12-month

consensus EPS OBIC Business Consultants (4733.T, 4733 JT)

Source: Company data, Morgan Stanley Research IT & Software | Japan

Stock Rating Overweight

Vs forecasts: OP +18% YoY, above consensus. A higher weighting of high-margin Industry View In-Line

cloud services and better fixed-cost absorption from revenue growth drove OPM Price target ¥7,500

Shr price, close (Jul 22, 2026) ¥6,840

improvement, leading to the earnings beat. Progress toward full-year guidance also Mkt cap, curr, basic (bn) ¥514.2

Avg daily trading value (bn) ¥1.6

remains on track.

Earnings surprise: While revenue was broadly in line with market expectations,

profit topped consensus as the mix shifted toward higher-margin businesses.

Demand for mission-critical cloud solutions remained robust, reinforcing the

business's strong profitability.

Recommended action: The earnings beat, together with continued improvement in

the business mix through cloud migration, is a positive development; we expect

support for the share price.

KPIs: Cloud ARR +24% YoY; Cloud Systems in Operation +22% YoY. Both net