Nomura Research Institute, Ltd.
4307・Prime Market・Information & Communication
Business
Nomura Research Institute (NRI) was established in 1965 as Japan's first private comprehensive think tank, and took its current form in 1988 following its merger with Nomura Computer System. The company operates four segments: Consulting, Financial IT Solutions, Industrial IT Solutions, and IT Infrastructure Services, offering an integrated range of services spanning policy proposals and Strategy Consulting, systems for the financial industry including securities, insurance, and banking, IT solutions for distribution, manufacturing, and public sectors, and data centers, cloud, and security. While counting Nomura Holdings as one of its major clients, NRI has a broad customer base across a wide range of industries and public sectors, boasting revenue of ¥814,708 million (FY2026 (ending March 2026)).
Business Model
NRI's core is the "Consolution" model, in which Consulting and IT solutions work in parallel to create continuous value for clients. Revenue is composed of System Development & Product Sales (¥263,133 million), Operation Services (¥337,847 million), Consulting Services (¥176,701 million), and Product Sales (¥37,025 million), with the highly recurring Operation Services accounting for roughly 41% of the total. Usage fee income from the Shared-Use System forms a stable revenue base, while brisk development project activity adds incremental revenue on top of it.
Company Strengths
The company has long operated shared-use systems such as the "STAR" series for the securities, insurance, and banking industries, achieving revenue of ¥405,152 million and an operating margin of 18.3% in the Financial IT Solutions segment. A high order backlog of ¥276,930 million (up 10.8% year on year) supports stable earnings through strong order accumulation.
The high profitability of the Consulting segment, with an operating margin of 28.0%, demonstrates the competitive advantage of the "consolution" model, which provides consistent support from strategy formulation to execution support, system construction, and operation. The favorable order environment continues, with total company-wide orders received in FY2026 (ending March 2026) reaching ¥856,846 million (up 7.9% year on year).
Operation service revenue of ¥337,847 million accounts for approximately 41% of total revenue, and cash flow from operating activities reached ¥147,641 million (up 13.4% year on year). The company also maintains strong financial soundness with a net D/E ratio of 0.05x, and holds high credit ratings of "AA-" from R&I and "A" from S&P.
ENVALITH's Perspective
Performance Trend
Revenue grew for five consecutive fiscal periods, from ¥611,634 million (FY2022, ended March 2022) to ¥814,708 million (FY2026, ending March 2026). However, operating profit for FY2026 (ending March 2026) deteriorated sharply to ¥58,273 million (down 56.8% from ¥134,907 million in the previous period), and profit attributable to owners of parent fell to ¥15,257 million (down 83.7% year on year). The main cause was the recognition of a ¥97,586 million impairment loss on goodwill and other assets related to the Australia & North America business. On the other hand, business profit excluding one-off factors such as impairment and fixed asset impairment losses came to ¥156,673 million (up 16.3% year on year), indicating improved profitability in the domestic business. The EBITDA margin improved to 25.6% (from 24.5% in the previous period). In terms of external factors, robust DX-related IT investment drove increased revenue and profit in the domestic business, while currency fluctuations and intensifying competition in overseas markets weighed on the performance of the Australia & North America business. Cash flow from operating activities remained at a high level of ¥147,641 million, indicating that cash-generating capability has not been impaired.
Growth Strategy
Under the Mid-term Management Plan 2028, the company aims to advance core business deepening, DX3.0, and a global three-region strategy, targeting an ROE level of 25% in FY2029 (ending March 2029)
Deepening the integrated provision of Consulting and IT solutions in Financial IT and Industrial IT, promoting the expansion of Shared-Use Platforms and fundamental productivity innovation through AI utilization. In FY2026 (ending March 2026), Financial IT Solutions performed well, with operating profit of ¥74,255 million (up 20.6% year on year).
In addition to business process transformation (DX1.0) and business model transformation (DX2.0), the company is taking on the challenge of social impact transcending companies and industries (DX3.0). Comprehensive support is provided from business model creation through AI utilization to system construction and advanced operation. R&D expenses are planned at ¥8,000 million in FY2027 (ending March 2027), up 47.8% year on year.
In Australia, NRI Australia Limited made SQA Holdco Pty Ltd a subsidiary and carried out a business integration. However, due to a decline in orders in the Consulting and Managed Services businesses, an impairment loss on goodwill and other assets of ¥76,998 million was recorded. In North America, Core BTS, Inc. also recorded an impairment loss of ¥19,910 million due to deteriorating performance in the cloud consulting business. Under Mid-term Management Plan 2028, the business plan will be reviewed and restructuring efforts pursued.
The company continues to increase dividends, targeting a consolidated dividend payout ratio of approximately 40%. The annual dividend for FY2026 (ending March 2026) is ¥77 (versus ¥63 in the previous fiscal year), with ¥84 planned for FY2027 (ending March 2027). As a subsequent event, the Board of Directors resolved on April 24, 2026 to acquire treasury shares up to a limit of 21,000,000 shares and ¥70,000 million. The company will pursue agile capital policy to achieve its target ROE level of 25%.
Last updated: July 19, 2026