Jun-Q Results: Solid Revenue and Orders; OP In Line: Strong Financial, Industrial and Cybersecurity; Overseas Losses Controlled; All Segments Solid

Research evidence excerpt

Jun-Q Results: Solid Revenue and Orders; OP In Line: Strong Financial, Industrial and Cybersecurity; Overseas Losses Controlled; All Segments Solid

Update

July 30, 2026 10:08 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MNomura Research Institute (4307) | Japan Tetsuro Tsusaka, CFA

Equity Analyst

Jun-Q Results: Solid Revenue Tetsuro.Tsusaka@morganstanleymufg.comLuyuan Yang, CFA +81 3 6836-8412

Luyuan.Yang@morganstanleymufg.com +81 3 6836-8423

and Orders; OP In Line: Strong Keiji Nishimura

Research Associate

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

Financial , Industrial and

Cybersecurity; Overseas Losses

Controlled; All Segments Solid

Nomura Research Institute (4307.T, 4307 JP)

IT & Software | Japan

AlphaSignals Earnings Reaction Stock Rating Overweight

Industry View In-Line

Unchanged In-line Largely unchanged Price target ¥5,500

Impact to our thesis Financial results versus consensus Direction of next 12-month Shr price, close (Jul 30, 2026) ¥5,576

consensus EPS Mkt cap, curr, basic (bn) ¥3,195.9

Source: Company data, Morgan Stanley Research Avg daily trading value (bn) ¥14.1

Vs. Forecasts: Revenue remained solid, while profit was in line with expectations. All

3 major IT service companies reported strong orders and revenue growth in Jun-Q.

Given NRI's already high margins, margin expansion was modest. Financial IT and

cybersecurity were the key drivers of revenue and profit, while overseas losses

remained well managed. Jun-Q (consolidated): Revenue +8% YoY; OP +12% YoY;

OPM 19.8% (+80bp YoY).

Surprises: Revenue and orders were solid, while profit met expectations. The

operating environment for Japan's IT services industry (incl. the three majors)

remains healthy.

Recommended Action: Strong revenue and order momentum should support the

share price.