CNS Co.,Ltd.
4076・Growth Market・Information & Communication
System Engineering Service Business (Single Segment)
The sole business segment of an IT services company capturing DX and AI demand
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue (Consolidated) | ¥7,774 million | ¥7,005 million | ↑ |
| Operating Profit (Consolidated) | ¥685 million | ¥555 million | ↑ |
| Ordinary Profit (Consolidated) | ¥725 million | ¥585 million | ↑ |
| Profit Attributable to Owners of Parent (Consolidated) | ¥590 million | ¥427 million | ↑ |
| Operating Profit Margin | 8.8% | 7.9% | ↑ |
| Equity Ratio | 74.0% | 75.3% | ↓ |
| Earnings per Share | ¥203.31 | ¥147.06 | ↑ |
| Net Assets per Share | ¥1,490.85 | ¥1,362.53 | ↑ |
| Cash and Cash Equivalents at End of Period | ¥3,026 million | ¥2,966 million | ↑ |
| Technology Solutions Business Revenue | ¥3,580 million | Up 27.2% year on year | ↑ |
| Business Solutions Business Revenue | ¥3,460 million | Up 0.2% year on year | — |
| Consulting Business Revenue | ¥735 million | Down 0.6% year on year | — |
Business Details
The System Engineering Service Business operated by CNS Co., Ltd. and its consolidated subsidiaries. From FY2026 (ending May 2026), the business classification was reorganized into three segments: Technology Solutions Business, Business Solutions Business, and Consulting Business. Major customers are NTT DATA Corporation (revenue of ¥1,643 million, 21.1% of total), NTT DATA Group (¥874 million, 11.2%), and Nomura Research Institute (¥811 million, 10.4%). The company provides an integrated SI development process from requirements definition through to comprehensive testing, and also promotes service deployment under its own brand,
Recent Overview
FY2026 (ending May 2026) achieved increased revenue and profit, with revenue up 11.0% and operating profit up 23.4%
For the full year of FY2026 (ending May 2026), revenue was ¥7,774 million (up 11.0% year on year), operating profit was ¥685 million (up 23.4% year on year), ordinary profit was ¥725 million (up 24.0% year on year), and profit attributable to owners of parent was ¥590 million (up 38.3% year on year). The Technology Solutions Business drove growth with a 27.2% increase in revenue, driven by the expansion of generative AI projects and progress on the next-generation payment platform. In the Consulting Business, gross profit rose 26.5% due to an increased proportion of high-gross-margin projects. Meanwhile, in the Business Solutions Business, gross profit fell 11.1% due to upfront costs associated with the ERP business launch. Net profit includes a one-time positive impact from a review of tax effect accounting. For FY2027 (ending May 2027), revenue is forecast at ¥9,278 million (up 19.3%) and operating profit at ¥966 million (up 40.9%).
Key Products
Growth Drivers
- Robust IT demand driven by continued corporate DX investment (high level of investment appetite in generative AI, cloud, and core system renewal areas)
- Rapid expansion of generative AI-related projects in the Technology Solutions Business (participation in multiple projects for major SIers)
- Continued progress on new development projects for the next-generation payment platform and expansion of the existing customer base
- Strengthened technical collaboration and service delivery capabilities in the DX and AI areas through a strategic partnership with NTQ Solution (Vietnam)
- Creation of projects and business expansion in the ERP area through strengthened partnership with Oracle (organizational changes also implemented in preparation for FY2027, ending May 2027)
- Improved profitability in the Consulting Business through expanded direct transactions with end users and an increased proportion of prime contractor projects
- Increased inquiries for and new end-user acquisition of the in-house original brand, U-Way
- Enhanced creativity and productivity, and promotion of co-creation with customers and partner companies, through the relocation of the head office
- Promotion of measures aimed at achieving the targets of revenue of ¥10.0 billion and an operating profit margin of 10.0% or higher in the final year of the medium-term management plan (FY2027, ending May 2027)
Risks
- Ongoing shortage of IT and digital talent and a challenging hiring environment, which constrains business expansion due to difficulty securing personnel
- Risk of order restraint and reduction in project scale at the customer's request (already materialized in the Business Solutions Business)
- Risk of declining profitability due to the prolongation of certain projects
- Risk of profit margin pressure due to upfront costs such as personnel training associated with the launch of the ERP business
- Risk of revenue concentration in major customers (NTT DATA, NTT DATA Group, and Nomura Research Institute), with the top three accounting for approximately 42.7% of revenue
- Risk of increased selling, general and administrative expenses and profit margin pressure due to rising personnel costs such as base pay increases
- Risk of impact on revenue recognition due to fluctuations in estimated costs for contracted work
- Risks associated with executing M&A and growth investments to achieve the medium-term management plan target (revenue of ¥10.0 billion)
Last updated: August 27, 2025