ISB CORPORATION
9702・Prime Market・Information & Communication
Information Services Business
The core segment accounting for approximately 78% of ISB Group revenue, operating across four areas: embedded software, business systems, IT infrastructure, and products.
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment revenue (external customers) | ¥7,942 million (Q1 FY2026, ending December 2026) | ¥7,793 million (Q1 FY2025, ending December 2025) | ↑ |
| Segment profit | ¥540 million (Q1 FY2026, ending December 2026) | ¥695 million (Q1 FY2025, ending December 2025) | ↓ |
| Segment profit margin | 6.8% (540÷7,970) | 8.9% (695÷7,822) | ↓ |
| Segment revenue (external customers, full-year results) | ¥31,508 million (full-year FY2025, ending December 2025) | ¥28,983 million (full-year FY2024, ending December 2024) | ↑ |
| Segment profit (full-year results) | ¥1,517 million (full-year FY2025, ending December 2025) | - | — |
Business Details
This segment comprises four areas: embedded/control software development for automotive, medical, industrial equipment, and mobile devices (Mobility Solutions); core and business system development (Business Industry Solutions); financial, public sector, and IT infrastructure (Enterprise Solutions); and product sales such as MDM (Product Solutions). The segment is operated by the Company and its subsidiaries (including ISB VIETNAM). In Q1 FY2026 (ending December 2026), external customer revenue reached ¥7,942 million (up 1.9% year on year), but segment profit declined due to costs associated with addressing unprofitable projects and increased growth investment expenses.
Recent Overview
Despite revenue growth, segment profit fell 22.0% year on year due to costs from addressing unprofitable projects and increased growth investment expenses.
In the Information Services Business for Q1 FY2026 (ending December 2026), revenue increased to ¥7,942 million (up 1.9% year on year). However, the revenue increase was insufficient to absorb costs from addressing unprofitable projects that arose last year, along with increased expenses from ongoing growth investments including sales enhancement and improved employee treatment, resulting in a significant decline in segment profit to ¥540 million (down 22.0% year on year). The provision for loss on order receipts of ¥115 million recorded at the end of the prior fiscal year had been reduced to zero by the end of the current quarter.
Key Products
Growth Drivers
- Robust order intake for financial, public sector, and cloud migration projects in Enterprise Solutions
- Steady progress in public sector projects, centered on local government clients
- Continued solid order intake from existing customers, centered on automotive meter-related products
- Strong performance of AI and IoT-related projects (Business Industry Solutions)
- Acquisition of new large-scale projects in the MDM business
- Promotion of initiatives to enhance social and economic value based on the "ISB Group Medium- to Long-Term Management Plan 2030"
Risks
- Risk of unprofitable projects arising (a provision for loss on order receipts of ¥115 million was recorded in FY2025, ending December 2025, and related costs continued to weigh on profit in the current quarter)
- Increased expenses associated with growth investments, including sales enhancement and improved employee treatment, weighing on profit
- Risk of slowing order intake in the IT infrastructure area due to component shortages driven by expanding AI demand
- Risk of rising component procurement costs and supply concerns for resin products, among others, due to surging crude oil prices amid heightened tensions in the Middle East
- Trend of year-on-year revenue decline in Business Industry Solutions
- Trend of shrinking mobile device and 5G-related projects
Last updated: March 26, 2026