Jun Q Results: Slightly Positive; Solid Earnings and Order Momentum

Research evidence excerpt

Jun Q Results: Slightly Positive; Solid Earnings and Order Momentum

Update

July 30, 2026 10:45 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MTISI (3626) | Japan Luyuan Yang, CFA

Equity Analyst

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

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

Solid Earnings and Order Keiji Nishimura

Research Associate

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

Momentum

AlphaSignals Earnings Reaction

Unchanged Modest upside Largely unchanged

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

consensus EPS TISI (3626.T, 3626 JP)

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

Stock Rating Equal-weight

Vs. Forecasts: OP +12% YoY, OPM 12.2% (+0.5ppt YoY), revenue +7% YoY. OP came Industry View In-Line

in slightly above consensus, with revenue also modestly exceeding expectations. Price target ¥3,500

Shr price, close (May 8, 2026) ¥3,565

Despite higher growth investment costs, stronger revenue and one time Mkt cap, curr, basic (bn) ¥804.7

Avg daily trading value (bn) ¥4.4

contribution (about ¥1bn) more than offset the increase, leading to margin

expansion.

Surprises: Order intake remained solid, with progress tracking well against company

guidance.

Recommended Action: Both earnings and orders were solid and should provide

support for the share price. While the quarter did not deliver a major earnings

surprise, it reinforced healthy order momentum.

Orders: Total orders +11% YoY, including Software Development orders +13% YoY.

Order growth remained robust, led by Software Development. Offering Services

and Industrial IT software development posted strong growth, while Financial IT

orders declined YoY.

Exhibit 1: Summary