NSW Inc.
9739・Prime Market・Information & Communication
Business
NSW Corporation is an independent IT services company founded in 1966, listed on the Prime Market of the Tokyo Stock Exchange. The company operates across four segments: Enterprise Solutions (IT system development for manufacturing, retail, finance, and public sector clients), Service Solutions (IoT, cloud, and data management), Embedded Solutions (embedded system development for automotive and industrial equipment), and Device Solutions (LSI and board design). It maintains business locations in major Japanese cities and has subsidiaries in China and Malaysia. Consolidated net sales for FY2026 (ending March 2026) were ¥52,431 million.
Business Model
The company's core business model is a SIer (systems integrator) model, undertaking IT system development, operation, and maintenance for client companies, providing an integrated service from upstream consulting to design, development, testing, and operations management. It also operates housing and hosting services through its own data centers (Yamanashi and Takamatsu), securing recurring stock-type revenue as well. The order backlog at the end of FY2026 (ending March 2026) stood at ¥19,810 million (up 2.7% year on year), providing high visibility into next-period sales. Funding is based primarily on internal capital, and the company maintains a financial structure close to debt-free management.
Company Strengths
The four segments—Enterprise, Service, Embedded, and Device—recorded revenues of ¥16,349 million, ¥15,218 million, ¥11,250 million, and ¥9,612 million respectively, showing a diversified structure in which weakness in a specific area can be offset by other segments. In FY2026 (ending March 2026), Device Solutions posted higher profit, which mitigated to some extent the impact of unprofitable projects in Enterprise Service.
The operating profit margin of Device Solutions stood at a high level of approximately 15.1% (operating profit of ¥1,447 million), while Embedded Solutions recorded 14.3% (operating profit of ¥1,609 million). Combined operating profit from these two segments totaled ¥3,056 million, accounting for approximately 57.8% of consolidated operating profit of ¥5,290 million, underpinning the quality of earnings.
The equity ratio at the end of FY2026 (ending March 2026) was 76.9% (up 1.8 points year on year), with cash and cash equivalents of ¥19,550 million. With a financial structure close to debt-free, the company maintains a framework capable of executing M&A and strategic investments using its own funds. Net assets increased to ¥37,891 million even while continuing dividend payments of ¥1,266 million.
ENVALITH's Perspective
Performance Trend
Revenue rose for five consecutive fiscal periods, from ¥43,452 million in FY2022 (ended March 2022) to ¥52,431 million in FY2026 (ending March 2026), representing a compound annual growth rate of approximately 4.8%. However, this included a slight revenue decline in FY2025 (ended March 2025) (¥50,028 million), and the pace of growth has remained stable. Operating profit reached a record high of ¥6,116 million in FY2025 (ended March 2025), before declining 13.5% to ¥5,290 million in FY2026 (ending March 2026). The main causes were the occurrence of unprofitable projects (in both the Enterprise and Service segments) and a sharp increase in advertising expenses (up ¥769 million year on year). Net income for the period secured a modest increase to ¥3,709 million (up 1.3% year on year), owing to the disappearance of the prior period's ¥733 million valuation loss on securities. In terms of the external environment, corporate demand for DX investment is expected to remain robust, but intensifying competition to secure AI talent is likely to continue exerting upward pressure on personnel expenses.
Growth Strategy
Expanding the core business while creating mid- to long-term growth areas as twin drivers, capturing DX demand across all segments
Promoting expansion of orders for system development targeting retail, finance, and public sectors, as well as IoT and data management services. In FY2026 (ending March 2026), combined order intake for both segments reached ¥31,594 million (up 2.6% year on year), continuing to accumulate; however, profit margins declined due to the occurrence of unprofitable projects. Enhancing project management sophistication remains a challenge.
Against a backdrop of growing demand for semiconductor design and embedded development, the company is pursuing high-value-added projects leveraging its end-to-end capabilities from high-level design through testing. Device Solutions achieved a 13.3% year-on-year increase in operating profit in FY2026 (ending March 2026), exceeding planned figures.
Promoting continued investment in human capital in anticipation of intensifying competition for AI talent, alongside a substantial increase in advertising expenses (¥898 million in FY2026, ending March 2026) to raise brand recognition. While this pressures profit in the short term due to increased costs, it is positioned as a strategic investment aimed at expanding the order base and securing talent over the mid to long term.
In FY2026 (ending March 2026), the annual dividend was substantially increased from ¥85 to ¥125 (payout ratio of 50.2%). The company forecasts maintaining ¥125 in FY2027 (ending March 2027) as well. Backed by ample cash holdings (¥19,550 million), the company continues strategic investments such as the acquisition of investment securities (¥1,000 million). Efforts to improve capital efficiency are drawing attention from shareholders.
Last updated: July 19, 2026