DTS CORPORATION
9682・Prime Market・Information & Communication
Technology & Solutions
Second segment providing cross-industry IT services specialized in digital technology
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue | ¥45,998 million | ¥42,877 million | ↑ |
| Segment Profit | ¥5,478 million | ¥4,583 million | ↑ |
| Depreciation | ¥481 million | ¥404 million | ↑ |
| Goodwill Amortization | ¥141 million | ¥185 million | ↓ |
| Goodwill Balance (End of Period) | ¥883 million | ¥1,024 million | ↓ |
| Orders Received | ¥46,229 million | ¥44,883 million (estimate) | ↑ |
| Order Backlog | ¥12,926 million | ¥12,823 million (estimate) | ↑ |
Business Details
To address customers' diverse needs using the latest technology, this segment specializes in digital technology and solutions, providing services across industries and regions. It handles consulting, system design, development, operation, and maintenance (including infrastructure, networks, and embedded systems), as well as the implementation, operation, and maintenance of both proprietary and third-party solutions. Its core areas are cloud infrastructure-related services, embedded systems, Enterprise Application Services, cybersecurity, and housing solutions. It is positioned as the segment leading the expansion of concentrated and forward investment areas within the focus business.
Recent Overview
IP business, securities, housing, and embedded-related operations performed steadily, with revenue up 7.3% and improved profit margin
For FY2026 (ending March 2026), revenue was ¥45,998 million (up 7.3% year on year) and segment profit was ¥5,478 million (up 19.5% year on year), a substantial increase. Core system renewal for an IP business company, cloud infrastructure renewal and cybersecurity measures for securities firms, housing-related solutions, and embedded-related business all progressed steadily. In addition to expanding concentrated investment areas such as Enterprise Application Services, the segment also began challenging forward investment areas in generative AI through collaboration with OpenAI Japan, LLC. The goodwill balance declined to ¥883 million due to ongoing amortization, and impairment risk is trending downward.
Key Products
Growth Drivers
- Expansion of concentrated investment areas in Enterprise Application Services (ServiceNow, ERP such as mcframe, etc.)
- Continued expansion of cloud infrastructure-related projects (cloud migration and modernization)
- Increase in cybersecurity measure projects for securities firms and financial institutions
- Deployment of generative AI utilization services as a forward investment area through collaboration with OpenAI Japan, LLC
- Steady performance in embedded-related business and launch of a new BIM-compatible version of housing-related solutions (Walk in home Series)
- Strengthened Azure cloud migration support as a Microsoft Azure and Security Solutions Partner
Risks
- Goodwill impairment risk: possibility of additional impairment against the remaining goodwill balance of ¥883 million (an impairment of ¥138 million was recorded in FY2025 (ended March 2025))
- Contingent liability risk related to past improper payment issues at overseas subsidiaries (possible violations of anti-corruption laws, etc.), with reasonable estimation of loss amounts currently difficult
- Impact on profitability from rising costs of securing and developing IT talent
- Risk of delayed response to business model transformation amid accelerating technological innovation (generative AI, etc.)
- Order growth rate (up 3.0%) is below revenue growth rate (up 7.3%), resulting in limited accumulation of order backlog
Last updated: June 17, 2026