Internet Initiative Japan Inc.
3774・Prime Market・Information & Communication
Network Services and Systems Integration Business
IIJ's core segment. Combined provision of network services and systems integration for corporations and government agencies accounts for over 99% of sales.
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment Revenue | ¥342,411 million | ¥313,920 million | ↑ |
| Segment Operating Profit | ¥33,603 million | ¥28,932 million | ↑ |
| Network Services Revenue | ¥178,738 million | ¥162,577 million | ↑ |
| Systems Integration Revenue (including Equipment Sales) | ¥163,639 million | ¥151,306 million | ↑ |
| Total SI Orders Received | ¥207,106 million | ¥157,856 million | ↑ |
| Total SI Order Backlog | ¥158,910 million | ¥115,443 million | ↑ |
| Total Contracted Bandwidth for Corporate Internet Connectivity Service | 16,532.1Gbps | 13,832.2Gbps | ↑ |
| Total Number of Contracts for Corporate Internet Connectivity Service | 5,046,516 contracts | 4,535,036 contracts | ↑ |
| Total Number of Lines for Consumer Internet Connectivity Service | 1,720,800 lines | 1,629,725 lines | ↑ |
| Year-on-Year Increase Rate of Monthly Recurring Revenue | up 12.0% | — | ↑ |
Business Details
Provides an integrated offering of internet connectivity services (corporate and consumer), Outsourcing Services (security, cloud, data centers), WAN Services, Systems Integration (construction and operation/maintenance), and equipment sales. Domestic subsidiaries (IIJ Engineering, IIJ Global Solutions, etc.) and overseas local subsidiaries work together to capture corporate DX promotion and network renewal demand. The accumulation of monthly recurring revenue underpins the earnings base.
Recent Overview
Orders for large SI projects expanded sharply, and order backlog and monthly recurring revenue accumulated to record-high levels.
In FY2026 (ending March 2026), the number of large-scale system integration projects with a total contract value exceeding ¥1.0 billion reached 19 (up from 15 in the prior fiscal year), with total order value growing substantially to approximately ¥62.0 billion (up from approximately ¥45.0 billion in the prior fiscal year). A GPU construction project overseas (approximately ¥12.0 billion) was also secured. SI order backlog increased 37.7% from the end of the prior fiscal year to ¥158,910 million. Systems integration operation and maintenance revenue grew strongly, up 16.0% year on year to ¥95,768 million. The negative profit impact from VMware product price increases was largely offset through price pass-through, and the SI gross profit margin improved to 16.1% (from 14.4% in the prior fiscal year). International business revenue grew 12.9% year on year.
Key Products
Growth Drivers
- Robust demand for network renewals accompanying DX promotion at corporations and government agencies (continued acquisition of large-scale system integration projects with total contract values exceeding ¥1.0 billion; 19 projects totaling approximately ¥62.0 billion in FY2026, ending March 2026)
- Expansion of mobile services for corporate IoT and other applications (3,573,098 contracts at the end of FY2026, ending March 2026, up 397,077 from the end of the prior fiscal year)
- Continued revenue growth in Outsourcing Services centered on security-related services (revenue of ¥67,622 million, up 14.3% year on year)
- Expansion of the earnings base through the accumulation of monthly recurring revenue (operation/maintenance and network services) following system construction (monthly recurring revenue up 12.0% year on year)
- Increase in the number of lines for the consumer IIJmio Mobile Services (1,430,483 lines at the end of FY2026, ending March 2026, up 118,974 from the end of the prior fiscal year)
- Expansion of international business, including overseas GPU construction projects (revenue up 12.9% year on year)
Risks
- Decline in network services gross profit margin to 27.1% (from 27.8% in the prior fiscal year) due to an increase in network services cost of sales (up 11.1% year on year to ¥130,308 million) associated with continued expansion of network facilities and other factors
- Fluctuations in quarterly performance due to variability in the timing of orders received and revenue recognition for large SI projects (system construction revenue down 1.3% year on year)
- Increase in selling, general and administrative expenses such as personnel costs (up 10.8% year on year to ¥42,445 million)
- Continued losses related to the equity-method affiliate DeCurret Holdings Inc. (a loss of ¥816 million in FY2026, ending March 2026)
- Risk of cost adjustments due to the determination of mobile data connection fee unit prices (no reversal of prior-year costs occurred this fiscal year, unlike in the past)
- Changes in the business environment due to geopolitical risks such as US trade policy and the situation in the Middle East
Last updated: June 25, 2026