VALTES HOLDINGS CO.,LTD.
4442・Growth Market・Information & Communication
Software Testing Business
Core business accounting for approximately 85% of group revenue. Provides third-party software testing specialty services.
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment revenue (external customers) | \u00a510,173 million | \u00a59,073 million | ↑ |
| Segment profit | \u00a5864 million | \u00a51,071 million | ↓ |
| Segment profit margin | 8.5% | 11.8% | ↓ |
| Segment assets | \u00a53,263 million | \u00a52,908 million | ↑ |
| Depreciation expense | \u00a554 million | \u00a521 million | ↑ |
| Amortization of goodwill | \u00a531 million | \u00a531 million | — |
Business Details
With manufacturers, software vendors, financial institutions and others as primary customers, the business provides test planning, design, execution, and reporting from a neutral third-party standpoint. It positions the enterprise domain (core systems, finance, healthcare, railways, etc.) as its most important market, and is expanding its involvement in upstream processes as PMO/QMO and its participation in large-scale migration projects. Through the official in-house launch of the generative AI test design tool "TestScape" and the beta release of the document analysis AI tool "QuintSpect," the business is driving productivity improvements and differentiation through AI utilization.
Recent Overview
Revenue grew a solid 12.1% year on year, but segment profit fell 19.3% due to AI investment and increased amortization.
In the Software Testing Business for FY2026 (ending March 2026), the effect of strengthening the sales structure led to a steady increase in the number of projects, and external customer revenue grew solidly to \u00a510,173 million (up 12.1% year on year). On the other hand, segment profit declined sharply to \u00a5864 million (down 19.3% year on year). This was due to a decline in gross profit margin caused by increases in cost of sales other than labor costs\u2014such as the start of amortization associated with the TestScape release and expanded floor space at the Tokyo head office\u2014combined with aggressive investment in generative AI test tool development in line with the new medium-term management plan. In addition, inter-segment internal revenue expanded from \u00a539 million in the prior period to \u00a572 million, with increased intra-group development transactions contributing to improved profitability in the Development Business.
Key Products
Growth Drivers
- Continued expansion of orders in the enterprise domain (finance, core systems, migration projects)
- Emergence of bottleneck-resolution effects from strengthening the sales structure and enhanced hiring of PM-level/senior personnel
- Productivity improvement and differentiation through the official in-house launch of the generative AI test tool "TestScape" and its expanded deployment in customer projects
- Feature improvements and commercial deployment of the document analysis AI tool "QuintSpect" following its beta release
- Medium- to long-term expansion of demand for software testing driven by DX promotion, cloud adoption, and expanded AI utilization
- Larger deal sizes and improved profit margins from expanded involvement in upstream processes as PMO/QMO
Risks
- Risk of substitution of the labor-intensive business model due to accelerated in-house development by companies driven by advances in AI technology (medium to long term)
- Risk of declining profit margin due to increased SG&A expenses and cost of sales associated with expanded investment in generative AI test tool development (\u00a51.2 billion planned over three years)
- Risk of declining gross profit margin due to increased amortization expenses associated with the TestScape release and increased fixed costs such as expanded floor space at the Tokyo head office
- Risk that a shortage of PM-level/senior personnel and sales staff becomes a bottleneck to growth
- Risk of sudden termination of large-scale projects at the customer's discretion
- Risk of losing technological advantage as competitors follow suit in developing AI test tools
- Risk of rising recruitment costs and personnel expenses due to worsening IT talent shortages
Last updated: June 23, 2026