AGS Corporation
3648・Standard Market・Information & Communication
Business
AGS Corporation traces its roots to a system company affiliated with Saitama Bank and Kyowa Bank, and became independent from the Resona Group in 2004 as an independent comprehensive information services company. It operates four segments: Information Processing Services (data centers, cloud, BPO), Software Development (SI consulting, custom development), Other Information Services (packaged software sales, infrastructure construction), and System Equipment Sales. Its main customers are financial institutions (including Resona Bank), local governments, and general corporations, with the financial, public, and corporate sectors forming a nearly even revenue composition. Together with its two consolidated subsidiaries (AGS Business Computer and AGS Pro Service), the company provides one-stop services ranging from consulting to system construction, maintenance, and operation.
Business Model
The company's revenue is built on two pillars: a subscription-based stock business (net sales of ¥12,148 million) comprising Outsourced Computing Services, Cloud Services, and BPO Services underpinned by its data center (Saitama iDC), and a flow business (net sales of ¥10,127 million) centered on custom system development for financial institutions, public-sector clients, and corporations. While stock revenue forms a stable base, SI development capturing DX and local-government standardization demand drives growth. Capital expenditures are funded through leasing and internal funds, and the company maintains sound financial health with zero borrowings from financial institutions.
Company Strengths
Originating as a systems company affiliated with a city bank, the company maintains long-term business relationships with high-quality clients such as Resona Bank (sales of ¥2,946 million, 10.3% of total) and the National Federation of Workers and Consumers Insurance Cooperatives (Zenkoku Rokyoren) (sales of ¥4,563 million, 15.9% of total). The three segments of finance, public sector, and corporate form a nearly balanced sales composition, achieving a well-balanced customer portfolio that avoids excessive dependence on any specific industry.
IDC Services (Saitama iDC) is located in an urban setting approximately 25km from central Tokyo and within a 40-minute train ride from Shinjuku, and features solid ground resistant to earthquake damage, a location with low flood risk, and the latest seismic isolation building technology. It has obtained four certifications—ISMS (ISO/IEC27001), ISMS Cloud Security (ISO/IEC27017), IT Service Management (ISO/IEC20000), and the Privacy Mark—establishing a stable 24/7, 365-day operational system.
The company achieved CMMI Level 3, based on the standards of Carnegie Mellon University in the United States, in 2006, and has maintained this capability since. It has established its own proprietary software development standard, "INDESTA," along with a quality-check system operated by a dedicated quality management department. In FY2026 (ending March 2026), the Software Development segment achieved sales of ¥10,127 million (up 37.7% year on year) and a segment profit margin of 17.9%, with these figures reflecting the results of improved quality and productivity.
ENVALITH's Perspective
Performance Trend
Revenue increased 35% over five fiscal years, from ¥21,187 million in FY2022 (ending March 2022) to ¥28,622 million in FY2026 (ending March 2026). Growth has notably accelerated over the past two fiscal years, at +12.5% in FY2025 (ending March 2025) and +15.1% in FY2026 (ending March 2026). Operating profit expanded approximately 2.6-fold, from ¥949 million in FY2022 (ending March 2022) to ¥2,449 million in FY2026 (ending March 2026), with the operating margin improving substantially from 4.5% to 8.6%. External factors—including the standardization of core administrative systems at local governments, expanding DX investment by private-sector companies, and growing demand for cybersecurity—have provided tailwinds across all segments. The Software Development segment, up 37.7% year on year, led overall company growth, with its share of total revenue expanding from 29.6% to 35.4%.
Growth Strategy
Aiming for medium- to long-term expansion of revenue and profit through strengthening cloud/security offerings and capturing DX demand
With the goal of "becoming an IT partner continuously chosen by customers even in the cloud era," the company is promoting expansion of Cloud Services provision and strengthening of cybersecurity measures as key initiatives. In FY2026 (ending March 2026), the first year of the plan, all segments performed steadily, with both revenue and profit significantly exceeding the plan.
The company is actively expanding orders for DX promotion projects targeting general corporations and projects supporting standardization of core administrative systems for local governments. In FY2026 (ending March 2026), segment net sales grew rapidly by 37.7% year on year to ¥10,127 million, and segment profit increased by 51.3% year on year to ¥1,817 million, making it the largest growth driver for the entire company.
In the Information Processing Services segment, the company is expanding orders for operations services for financial institutions as well as increasing orders for data center and Cloud Services projects for general corporations. The FY2027 (ending March 2027) forecast also explicitly cites "increased provision of Cloud Services in the stock business" as a factor driving revenue growth.
The company resolved (at the Board of Directors meeting on April 15, 2026) to absorb its wholly owned subsidiary AGS Business Computer Co., Ltd. through an absorption-type merger effective April 1, 2027. The aim is to consolidate human resources and know-how within the parent company, thereby maximizing the group's overall strength and the utilization of management resources. There is no impact on consolidated results, as the primary objective is organizational efficiency.
Last updated: July 19, 2026