ENVALITH
TIS株式会社 logo

TIS Inc.

3626・Prime Market・Information & Communication

Official website
TIS株式会社 logo
TIS Inc.3626

Business

TIS Inc. is a major IT services group comprising 50 consolidated subsidiaries and 62 equity-method affiliates. Centered on Operations & Cloud Services, software development, and solution provision, it delivers IT services to a broad range of industry clients including financial institutions, manufacturing, distribution, healthcare, and government. The business is composed of five segments—Offering Services, BPM, Financial IT, Industrial IT, and Wide-Area IT Solutions—and offers a diverse service lineup ranging from the payments domain to community-based IT Professional Services (for Regional & Client Sites). In July 2026, TIS is scheduled to merge with its wholly owned subsidiary Intec to transition to a new structure as "TISI Inc."

Business Model

Specialist personnel with deep knowledge of client industries and operations handle the entire value chain, from IT consulting to development, operations, and BPO. Offering Services (payments, cloud, etc.) built through the company's own investment generate stock-type revenue, while Financial IT and Industrial IT accumulate earnings by progressing from large-scale order intake to long-term maintenance and operations. BPM aims for higher value-added through a BPaaS model that fuses BPO and SaaS. Through a three-year cumulative growth investment of ¥100 billion, the company is driving expansion of service-type and product-type revenue.

Company Strengths

Recorded net sales of ¥596,479 million across five reporting segments: Financial IT, Industrial IT, Wide-Area IT Solutions, BPM, and Offering Services. The company possesses deep operational know-how across a wide range of industries, from financial institutions to manufacturing, distribution, healthcare, and government, building a stable revenue base by diversifying dependence on specific customers and industries.

Secured free cash flow of ¥50,527 million in FY2026 (ending March 2026). The interest-bearing debt ratio remains low at 6.3%, maintaining an "A" credit rating. The company has the financial strength to execute ¥100 billion in cumulative growth investment over three years under its medium-term management plan while also maintaining a shareholder return policy with a total payout ratio of 50%.

The company has deployed an AI-driven development process leveraging generative AI, confirming a 47% productivity improvement in specific projects. Know-how is shared through a mutual technical support site in which over 10,000 group employees participate. The company also promotes industry-academia collaborative research in quantum computing and spatial computing, investing ¥2,259 million in research and development expenses.

ENVALITH's Perspective

In FY2026 (ending March 2026), the core business expanded steadily, with net sales of ¥596,479 million (up 4.3% year on year) and operating profit of ¥76,229 million (up 10.4% year on year). However, a settlement was reached in the lawsuit that consolidated subsidiary INTEC had been facing from Mitsubishi Shokuhin, and ¥7,434 million, including a settlement payment of ¥7,090 million, was recorded as an extraordinary loss. This pushed down profit attributable to owners of parent to ¥46,624 million (down 6.8% year on year). While the litigation risk has been resolved, close attention should be paid to the impact of this one-time deterioration in earnings on investor sentiment.

The Financial IT segment posted net sales of ¥98,730 million (down 1.5% year on year) in FY2026 (ending March 2026), the only segment to see a decline in revenue. The main causes were the peak-out of a large-scale development project for a core credit card client and the termination of operations work for some clients, and this is judged to be a cyclical adjustment rather than a structural decline in demand. In fact, the forecast for FY2027 (ending March 2026) calls for a substantial recovery to ¥108,500 million (up 9.9% year on year), driven by modernization-related work and the acquisition of new clients. However, achieving this forecast is premised on the reliable accumulation of new projects.

For FY2027 (ending March 2026), profit attributable to owners of parent is forecast to increase substantially to ¥57,000 million (up 22.3% year on year). However, this forecast includes an assumed ¥5,000 million gain on sale of investment securities (extraordinary gain) as part of efforts to improve asset efficiency, creating a divergence from the 6.3% growth rate on an operating profit basis. It also already factors in an increase of approximately ¥1.6 billion in selling, general and administrative expenses and approximately ¥600 million in non-operating expenses related to preparations for the merger with INTEC. As for the external environment, tailwinds are expected to continue, with the Bank of Japan Tankan survey's software investment plans showing a year-on-year increase, indicating continued IT investment demand in the market; however, continued attention should be paid to risks from U.S. trade policy and volatility in financial and capital markets.

Growth Strategy

Under "Frontiers 2026", the company is advancing frontier development, higher value-added services, and strengthening its business foundation through the merger with Intec

TIS and Intec will merge effective July 1, 2026, with the trade name changed to "TISI Inc." The company will vigorously promote the consolidation of management resources and intellectual property and enhance the value provided by its core sites, thereby increasing value exchange with customers and society. Merger preparation costs of approximately ¥2.2 billion have already been factored into FY2027 (ending March 2027).

As short-term measures, the company is promoting the development of environments to encourage the use of generative AI, redesigning business processes, and establishing AI education curricula. Toward the next medium-term management plan, the company is examining as key strategies: qualitative transformation of earnings through AI-driven development, expansion of recurring revenue through industry-specific agentic AI services, and diversification of the earnings model through strategic investment in priority areas.

The final targets are set at net sales of ¥620.0 billion, operating profit of ¥81.0 billion (operating margin of 13.1%), average annual EPS growth of over 10%, ROIC/ROE of over 13%/over 16%, and operating profit per employee of over ¥3.5 million. The FY2027 (ending March 2027) forecast (net sales of ¥620,000 million, operating profit of ¥81,000 million, operating margin of 13.1%) is consistent with the final-year targets, and progress toward achievement is on track.

With a total payout ratio of 50% as its policy, the company continues to increase dividends, with an annual dividend of ¥80 (up ¥10 year on year) for FY2026 (ending March 2026) and a forecast of ¥90 (up ¥10 year on year) for FY2027 (ending March 2027). In March 2026, the company decided to conduct an additional share buyback of ¥50.0 billion (acquisition period from March to September 2026), promoting optimization of its capital structure to contribute to achieving ROE of over 16% and average annual EPS growth of over 10%.

With Asia, which has enormous market potential, as a long-term target, the company is promoting business expansion in ASEAN while broadening global partnerships. It aims to achieve consolidated global net sales of ¥100.0 billion in FY2026 (ending March 2026). The company will develop this through two pillars: adding higher value through the integration of consulting and IT, and enhancing its technology investment capabilities.

Last updated: July 19, 2026