Sharing Innovations Inc.
4178・Growth Market・Information & Communication
Digital Transformation Business
The company's core segment centered on DX support (approximately 91% of revenue composition)
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment revenue (Q1 FY2026 (ending December 2026) cumulative) | ¥939 million | ¥1,124 million (Q1 FY2025 (ending December 2025) cumulative) | ↓ |
| Segment profit (operating income) (Q1 FY2026 (ending December 2026) cumulative) | ¥117 million | ¥79 million (Q1 FY2025 (ending December 2025) cumulative) | ↑ |
| Segment profit margin (Q1 FY2026 (ending December 2026) cumulative) | 12.5% | 7.1% (Q1 FY2025 (ending December 2025) cumulative) | ↑ |
| Unamortized goodwill balance (as of March 31, 2026) | ¥484 million | ¥512 million (as of December 31, 2025) | ↓ |
| Segment revenue (full-year forecast) | ¥4,500 million (consolidated total, unchanged) | ¥4,088 million (FY2025 (ending December 2025) actual) | ↑ |
Business Details
Composed of two pillars: System Solutions (Web system and smartphone app development, etc.) and Cloud Integration (support for cloud service implementation centered on Salesforce). The segment serves a wide range of industries including manufacturing, finance, distribution, and staffing as customers, handling both contract-based and quasi-delegation contract forms. The company has expanded its development structure through M&A and recruitment, with subsidiaries including Intermove Co., Ltd., Coznet LLC, and SHARING INNOVATIONS VIETNAM CO.,LTD.
Recent Overview
Revenue declined 16.5% year-on-year, but profit margin improved significantly to 12.5%
Revenue for the DX Business in Q1 FY2026 (ending December 2026) was ¥939 million (down 16.5% year-on-year), continuing to decline. While System Solutions (¥697 million, down 24.3% year-on-year) and Cloud Integration (¥148 million, down 8.2% year-on-year) decreased, Other (data, AI, IT consulting, etc.) surged to ¥87 million (up 143.9% year-on-year). Cost structure improvements were effective, resulting in segment profit of ¥117 million (up 47.4% year-on-year) and a significantly improved profit margin of 12.5% (up from 7.1% in the same period of the prior year). The company positions the current consolidated fiscal year as a "recovery period" and describes progress as being roughly in line with plan.
Key Products
Growth Drivers
- Expansion of the domestic cloud market (up 29.2% year-on-year in 2024, with a projected CAGR of 14.6% from 2024 to 2029)
- Expansion of cloud migration demand driven by companies' cloud-first strategy promotion (target domain expanding from Web and information systems to core systems)
- Strengthening of the ERP domain through the M&A of Coznet LLC in August 2025
- Growth of new domains in the Data Business / IT Consulting Business (Other revenue in Q1 up 143.9% year-on-year)
- Improved utilization rate through the transition of engineers to a pooled staffing system in July 2025
- Improved cost structure through fixed cost reduction plans toward 2026 (review of rent and system license expenses, etc.)
Risks
- Risk of failing to meet plans for the number of projects and revenue due to increasing difficulty in hiring PMs and PLs in the Salesforce domain
- Continued decline in legacy and low-skill demand due to progress in insourcing in the SES (partner) domain
- Worsening IT talent shortage (estimated shortfall of approximately 733,000 people by 2040) leading to higher recruitment costs and delays in structure building
- Increased project risk accompanying the higher difficulty and larger size of projects for mid-tier and enterprise clients
- Future impairment risk related to the unamortized goodwill balance of ¥484 million (entirely attributable to the DX Business)
- Foreign exchange risk related to overseas operations, including the Vietnamese subsidiary
Last updated: March 24, 2026