Jun Q Results: System Issues Drove a Significant Miss; Full-Year Guidance Maintained, But Execution Remains Key Focus

研报英文原文证据摘录

Not for redistribution without written consent of Morgan Stanley

M

Update

August 5, 2026 10:35 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+

BIPROGY (8056) | Japan

Luyuan Yang, CFA

Equity Analyst

Jun Q Results: System Issues

Drove a Significant Miss; FullYear Guidance Maintained, But

Execution Remains Key Focus

AlphaSignals Earnings Reaction

Tetsuro Tsusaka, CFA

Equity Analyst

Keiji Nishimura

Research Associate

BIPROGY (8056.T, 8056 JT)

Unchanged

Meaningful shortfall

Modest revision lower

Impact to our thesis

Financial results versus consensus

Direction of next 12-month

consensus EPS

Source: Company data, Morgan Stanley Research

Results vs. forecasts: Revenue -6% YoY, OP -20% YoY, OPM 7.5% (-1.4ppt YoY).

Both revenue and OP missed market expectations, with the OP shortfall particularly

IT & Software | Japan

Stock Rating

Industry View

Price target

Shr price, close (Aug 5, 2026)

Mkt cap, curr, basic (bn)

Avg daily trading value (bn)

Equal-weight

In-Line

¥5,000

¥4,736

¥457.4

¥2.3

significant. The revenue decline was mainly due to the postponement of ¥6 bil of

revenue recognition following system issues. OPM declined as higher system-related

costs and lower revenue reduced fixed-cost absorption.

Earnings surprise: While results missed, the company maintained its full-year

guidance. Management expects the delayed revenue from the system issues to be

recovered in 2Q, making execution against the full-year plan the key focus.

Recommended action: The revenue and earnings miss, particularly on profit, is

negative. However, order momentum remains strong, led by AI-related projects. The

market might need greater confidence in the company's ability to deliver its full-year

guidance, and we expect the stock to react negatively in the near term.

Orders (1Q): +26% YoY. Large AI-related projects in both hardware and software

drove growth, while system services orders also expanded, particularly in the

financial services and retail sectors. Overall, order momentum remained solid,

supported by continued strength in AI-related demand.

Summary

Exhibit 1:

F3/27 1Q

(JPY M)

Consol.

Revenue

GP

GPM

OP

OPM

Revenue by seg

Service

Software

Hardware

GP by seg

Service

Software

Hardware

…