TIS (3626): FY2025 Results Summary — Operating Margin Rises to 12.8%, Dividend Up for 14th Straight Year

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Note: TIS refers to the fiscal year ended March 31, 2026 as “fiscal 2026” in its presentation materials; this site classifies that year as FY2025, and all year labels in the text and tables below follow the company’s presentation. TIS Inc., the core company of the TIS INTEC Group, reported net sales of ¥596,479 million for fiscal 2026, up 4.3% year on year, and operating income of ¥76,229 million, up 10.4%, with the operating margin improving 0.7 percentage points to 12.8%. Both sales and operating income exceeded the company’s revised forecast. Net income attributable to owners of the parent company declined 6.8% to ¥46,624 million due to a deterioration in net extraordinary income/loss.

Consolidated Results (Full-Year Actual)

According to the company, sales and operating income increased, driven by business expansion through effectively capturing clients’ IT investment demand, including digital transformation needs, and expanding service offerings. Versus the revised forecast, net sales came in ¥8,479 million higher (+1.4%) and operating income ¥1,229 million higher (+1.6%). The gross profit margin improved to 28.2% (up 0.2 percentage points year on year). On the extraordinary items that weighed on net income, extraordinary income was ¥5,118 million (including a ¥4,374 million gain on sale of investment securities), while extraordinary loss was ¥12,677 million (including a ¥7,434 million provision for loss on litigation and ¥2,827 million in impairment losses). Orders received during the fiscal year rose 5.0% to ¥605,805 million and the order backlog at year-end grew 6.7% to ¥210,769 million, both driven by software development.

Item (Millions of yen)	Fiscal 2025	Fiscal 2026	YOY change
Net Sales	571,687	596,479	+24,792 [+4.3%]
Operating Income	69,047	76,229	+7,181 [+10.4%]
Operating Margin	12.1%	12.8%	+0.7P
Net Income Attributable to Owners of the Parent Company	50,012	46,624	-3,388 [-6.8%]
Net Income per Share [Yen]	215.00	204.91	-10.09 [-4.7%]
ROE	15.3%	14.0%	-1.3P

Segment Results

By key business segment, Offering Service Business grew sales 10.3% on project wins in payment, infrastructure, and enterprise areas, fewer unprofitable projects, and overseas business, despite higher upfront investment in payment. Business Process Management increased both sales and operating income on project wins in the DX business and ongoing cost control. Financial IT Business saw sales decline 1.5% but operating income rise 3.3%, as high-value-added businesses such as modernization-related projects improved profitability. Industrial IT Business posted a 16.4% increase in operating income on expanded IT investment across services, manufacturing, and distribution. Regional IT Solutions grew sales and operating income, supported by broader IT investment demand from healthcare and other industrial clients.

Segment	Metric (Millions of yen)	Fiscal 2025	Fiscal 2026	YOY change
Offering Service Business	Net Sales	145,515	160,574	+15,059 [+10.3%]
Offering Service Business	Operating Income	9,937	10,442	+505 [+5.1%]
Business Process Management	Net Sales	42,646	44,092	+1,445 [+3.4%]
Business Process Management	Operating Income	5,326	6,397	+1,071 [+20.1%]
Financial IT Business	Net Sales	100,252	98,730	-1,521 [-1.5%]
Financial IT Business	Operating Income	12,321	12,729	+408 [+3.3%]
Industrial IT Business	Net Sales	128,120	133,396	+5,276 [+4.1%]
Industrial IT Business	Operating Income	19,330	22,507	+3,177 [+16.4%]
Regional IT Solutions	Net Sales	177,425	184,238	+6,812 [+3.8%]
Regional IT Solutions	Operating Income	21,576	23,328	+1,752 [+8.1%]

Fiscal 2027 Forecast (Year Ending March 31, 2027)

For fiscal 2027, the company forecasts higher sales and higher income even while continuing growth investment and increasing investment in compensation (an additional ¥4.0 billion in compensation-related investment year on year). Net income is expected to rise significantly, reflecting an estimated ¥5 billion extraordinary gain under the company’s investment securities disposal policy. TIS states that EPS CAGR of 10% and ROE of over 16%, key management indicators under the Medium-Term Management Plan, are also expected to be achieved. The gross profit margin is forecast at 29.0%, up 0.8 percentage points.

Item (Millions of yen)	Fiscal 2026 Actual	Fiscal 2027 Forecast	YOY change
Net Sales	596,479	620,000	+23,520 [+3.9%]
Operating Income	76,229	81,000	+4,770 [+6.3%]
Operating Margin	12.8%	13.1%	+0.3P
Net Income Attributable to Owners of the Parent Company	46,624	57,000	+10,375 [+22.3%]
Net Income per Share [Yen]	204.91	271.70	+66.79 [+32.6%]
ROE	14.0%	17.5%	+3.5P

Shareholder Returns

For fiscal 2026, the year-end dividend was increased by ¥4 per share compared with the forecast, bringing the annual dividend to ¥80 per share — the 14th consecutive year of dividend increases, reflecting business growth that exceeded the forecast. For fiscal 2027, an annual dividend of ¥90 per share is planned, up ¥10 year on year. A treasury stock repurchase of up to ¥50 billion is underway based on the resolution dated March 10, 2026; of this, ¥13.9 billion was acquired in fiscal 2026, with the remaining ¥36.1 billion planned for acquisition in fiscal 2027. Under its basic policy on shareholder returns, the company targets a total return ratio of approximately 50%, will continue to enrich dividends per share, and in principle limits treasury stock holdings to around 5% of total shares outstanding, with any excess cancelled, while allowing a D/E ratio of up to 0.5.

Item	Fiscal 2025	Fiscal 2026	Fiscal 2027 (plan)
Annual dividend per share [Yen]	70	80	90
Payout ratio (adj.)	35.7%	35.3%	35.0%
Total return ratio (adj.)	49.8%	49.0%	50.0%

Medium-Term Plan / Topics

TIS reports steady progress in the second year of the Medium-Term Management Plan (2024-2026) “Frontiers 2026.” Operating income per person reached ¥3.5 million in fiscal 2026, achieving the plan target one year early, and job satisfaction reached 59%, exceeding the fiscal 2027 target of 58% ahead of schedule. For fiscal 2027, the plan’s final year, the company targets sales of ¥620 billion, an operating margin of 13.1%, ROIC above 13%, ROE above 16%, and EPS CAGR above 10%. Looking further ahead, the Group aims to achieve consolidated sales of approximately ¥1 trillion and operating income of over ¥150 billion in fiscal 2033 by strengthening the Group-wide value chain centered on TISI and advancing growth strategies for the AI era. TISI Inc. is scheduled to be established in July 2026 through the merger of TIS Inc. and INTEC Inc. In technology strategies, AI-driven development processes are progressing as planned toward a 50% productivity improvement by fiscal 2030, with a 47% productivity improvement confirmed in specific projects.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.