Densan System Holdings Co., Ltd.
4072・Prime Market・Information & Communication
Information Services Business
Core segment of an independent IT vendor integrating SI, BPO, and product sales
| Period | Current | Previous | Change |
|---|---|---|---|
| Net Sales (Cumulative Q1) | ¥11,486 million | ¥9,819 million | ↑ |
| Operating Income (Cumulative Q1) | ¥638 million | ¥419 million | ↑ |
| Net Sales YoY Change | Up 17.0% | — | ↑ |
| Operating Income YoY Change | Up 52.1% | — | ↑ |
| Net Sales (Full Year, Prior Period Actual) | ¥43,061 million | — | ↑ |
| Operating Income (Full Year, Prior Period Actual) | ¥942 million | — | ↑ |
Business Details
The Information Services Business consists of three service groups: SI & Software Development (cloud solutions, contract development, maintenance and operations), Information Processing Services (BPO: invoice issuance agency, printing, enclosing, call centers, etc.), and Merchandise and Product Sales (system equipment, networks, IoT devices). As an independent IT vendor, the company positions itself as a co-creation partner for customers, providing one-stop services from SI design through operation and maintenance. It is also actively expanding Google-related cloud solutions, generative AI utilization support, and information security business. This segment accounted for approximately 66.7% of consolidated net sales in the first quarter of FY2026 (ending December 2026).
Recent Overview
The Information Services Business achieved substantial growth in both revenue and profit, with net sales up 17.0% and operating income up 52.1%
In the first quarter of FY2026 (ending December 2026) (January to March 2026), the Information Services Business recorded net sales of ¥11,486 million (up 17.0% year on year) and operating income of ¥638 million (up 52.1% year on year), achieving substantial growth in both revenue and profit. Delivery of Google Chromebook projects for the GIGA School Program as planned, steady performance in cloud services such as Google Workspace and Google Cloud Platform, and high engineer utilization driven by strong project activity including implementation support and migration services boosted profits. Meanwhile, operations for catalog mail-order businesses in the BPO field continued to decline due to the impact of online retail.
Key Products
Growth Drivers
- Continued expansion of demand in the cloud services field, including Google Workspace and Google Cloud Platform
- Strong sales of education-sector devices such as Chromebooks in response to the GIGA School Program (including NEXT GIGA)
- Expanded orders for SI projects for specific industries, such as system projects for the auto auction industry
- Sustained high engineer utilization and profit uplift driven by strong project activity including implementation support and migration services
- Creation of new revenue opportunities through bundled sales of generative AI licenses and utilization support
- Expanded orders through horizontal deployment of cloud service implementations for local governments
Risks
- Continued expected contraction of data entry and shipping label printing services related to catalog sales due to the impact of online retail (the company has explicitly stated this trend is expected to continue)
- Impact on the BPO field from consolidation of processing for major clients (a factor keeping net sales for form creation agency services roughly flat)
- Risk of unprofitable projects arising in SI & Software Development
- Declining profit margins in Merchandise and Product Sales due to intensifying price competition with other companies and rising procurement prices
- Rising personnel costs and difficulty securing talent due to intensifying competition for DX and AI talent
- External environment risk of rising raw material prices and yen depreciation increasing costs and pressuring corporate earnings
Last updated: March 24, 2026