DTS CORPORATION
9682・Prime Market・Information & Communication
Business
DTS Corporation is an independent comprehensive information services company established in 1972, operating as a group that includes 14 consolidated subsidiaries. Its business consists of three segments: Business & Solutions, Technology & Solutions, and Platform & Services. With a customer base spanning a wide range of industries including finance (banking, securities, insurance), public sector (municipalities, government agencies), manufacturing, and telecommunications, the company provides end-to-end IT services ranging from system development and consulting to IT infrastructure operation, cloud migration support, and provision of proprietary solutions. Listed on the Prime Market of the Tokyo Stock Exchange.
Business Model
The company has a multi-layered revenue model built on order-based system development and implementation (SI), while accumulating recurring revenue through cloud migration support, managed services, and subscription-type services (such as ReSM plus). This is complemented by partner solution sales and implementation support for ServiceNow, mcframe, and others, as well as maintenance and license revenue from proprietary solutions (such as the Walk in home Series), achieving both revenue stability and growth potential.
Company Strengths
Operating profit for FY2026 (ending March 2026) was ¥16,434 million (up 13.4% year on year), marking 16 consecutive years of profit growth and updating the record high for the 12th consecutive year. Revenue also increased for the 5th consecutive year, supported by a diversified customer base with low dependence on specific customers or industries and thorough project profitability management, which underpin stable profit growth.
Against the Medium-Term Management Plan (2025-2027) target of 57% for FY2028 (ending March 2028), the focus business revenue ratio reached 62.9% as of FY2026 (ending March 2026). Early shifts toward priority investment areas such as Cloud & Modernization, Security, and Enterprise Application Services have been successful, advancing the shift toward a higher value-added revenue structure.
ROE for FY2026 (ending March 2026) reached 19.2%, already achieving the medium-term target of 18% or higher. The dividend payout ratio of 50.7% and total shareholder return ratio of 72.1% also meet target levels for shareholder returns. Between May and July 2025, the company acquired and fully retired approximately ¥2,500 million of treasury shares, simultaneously improving capital efficiency and returning profits to shareholders.
ENVALITH's Perspective
Performance Trend
From FY2022 (ended March 2022) to FY2026 (ending March 2026), revenue grew from ¥94,453 million to ¥135,213 million (up 43% over 5 years), while operating profit rose from ¥11,197 million to ¥16,434 million (up 47% over the same period), with profit growth outpacing revenue growth. In FY2026 (ending March 2026), revenue increased 7.4% and operating profit increased 13.4%, continuing the trend of accelerating profit growth, with the operating margin improving to 12.2% (from 11.5% in the previous period). As an external factor, the market environment in which corporate IT investment is shifting toward information systems and customer touchpoint systems has provided a tailwind, with demand for generative AI infrastructure for data centers in particular driving a 22.1% increase in Platform & Services. A 4.6% reduction in selling, general and administrative expenses also contributed to the improved profit margin. Operating cash flow remained at a high level of ¥8,929 million.
Growth Strategy
As the 2nd Stage of Vision2030, the company aims for net sales of ¥160,000 million and ROE of 18% or higher for FY2028 (ending March 2028), based on three key pillars.
The company has established five focus investment areas (Cloud & Modernization, Data Utilization, Security & Managed Services, Enterprise Application Services, and IoT & Edge Technology) along with forward-looking investment areas in AI, generative AI, and CX. In FY2026 (ending March 2026), the ratio of focus business net sales reached 62.9%, already exceeding the FY2028 (ending March 2028) target of 57% or higher. The company aims for AI and generative AI-related net sales of ¥10.0 billion by FY2030.
In September 2025, the company began collaborating with OpenAI Japan, LLC, promoting the built-in integration of AI into systems, development of AI-native proprietary solutions, and code generation support. It also launched joint research on "Affective AI Agents" with Keio University. The company has expanded its partner ecosystem by obtaining Solutions Partner certification from Microsoft in the Azure and security fields, as well as Atlassian's "Service Management Specialization" certification.
The company is advancing investment in human capital (base salary increases, special bonuses, restricted stock grants), strengthening group governance, and enhancing system infrastructure. To improve capital efficiency, it repurchased and fully retired approximately ¥2,500 million worth of treasury shares between May and July 2025, and in May 2026 resolved to acquire up to an additional ¥5,000 million. ROE reached 19.2%, achieving the medium-term target of 18% or higher. A key challenge is executing the cumulative three-year growth investment of ¥32.5 billion targeted for FY2028 (ending March 2028).
Last updated: July 19, 2026