AXIS CO.,LTD.

Business Details

Provides Business Application Development Service (design, development, and operation/maintenance) and Infrastructure System Construction Service (design, construction, and operation/maintenance of server, network, and cloud infrastructure) to financial institutions (banks, securities firms, insurance companies, etc.), government agencies/public institutions, and general business corporations. In FY2025 (ending December 2025), sales composition by customer was 50.7% financial, 20.6% public, 16.1% information & telecommunications, and 12.6% other. The sales ratio of growth areas (cloud, AI, RPA, Fintech, etc.) was 43.9%. Sales ratio to the top three major SIer groups was 40.9%, and customers with 10+ years of business relationship accounted for 64.7%, indicating a stable revenue base.

Recent Overview

Q1 FY2026 saw strong growth in public, telecom, and banking sectors, with sales up 15.5% YoY

Sales in the Systems Service Business for Q1 FY2026 (ending December 2026, January-March) were ¥2,123 million, an increase of ¥285 million (15.5%) YoY. Sales to the public/social infrastructure sector increased robustly due to continued order intake for public social infrastructure projects. In addition, sales to the information & telecommunications and banking sectors increased, mainly due to new customer acquisition and expansion of existing projects. Active investment in human resources aimed at expanding high-value-added areas and increasing the proportion of prime contractor projects, along with expanded collaboration with business partners, has successfully strengthened order intake for high-profitability projects.

Key Products

Growth Drivers

• Continued expansion of order intake for large-scale public social infrastructure projects (strong growth continued in Q1 FY2026)
• Increased sales driven by new customer acquisition and expansion of existing projects in the information & telecommunications and banking sectors
• Active investment in human resources aimed at increasing the proportion of high-value-added areas and prime contractor projects
• Securing systems engineers and outsourcing resources through expanded collaboration with business partners
• Solid IT investment demand, with the Bank of Japan Tankan March 2026 survey showing a 4.4% YoY increase in software investment across all industries
• Expansion of the growth area (AI, cloud, RPA, Fintech, etc.) sales ratio to 43.9% and further movement toward higher value-added services
• Strengthened order intake in the cloud and network domains through the establishment of the Network Department and Cloud Business Department

Risks

• High dependence on the top three major SIer groups, accounting for 40.9% of sales, creating a customer concentration risk
• High sales ratio to financial institutions at 50.7%, making the segment susceptible to IT investment trends and regulatory changes in the financial industry
• Risk of rising recruitment costs and labor expenses due to intensifying competition for systems engineer talent acquisition
• Risk of service obsolescence due to technological innovation in AI, cloud, etc., and increasing costs of technology acquisition
• Risk of economic downturn due to the impact of US trade policy, and the possibility that rising prices could lead to suppressed IT investment by customers
• Risk of difficulty securing business partners and rising costs due to dependence on outsourcing expenses (46.0% of cost of sales)
• Uncertainty regarding customer companies' investment plans due to fluctuations in the Middle East situation and financial capital markets