Otsuka Corporation (4768): FY2025 Results Summary — Net Sales Up 19.4% in the Windows 10 EOS Year

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OTSUKA CORPORATION (TSE: 4768), an IT solutions company covering system integration and service & support for offices, announced its business results for the fiscal year ended December 31, 2025 on February 2, 2026. Note: the company has a December fiscal year-end, so FY2025 here refers to January–December 2025. Consolidated net sales reached 1,322,791 million yen, up 19.4% year on year, with operating profit of 89,943 million yen (+21.0%) and profit attributable to owners of parent of 64,303 million yen (+20.2%). All profit lines came in above the revised plan announced on August 1, 2025.

Consolidated Results (Full-Year Actual)

Consolidated net sales were 1,322,791 million yen (104.9% of the revised plan), operating profit was 89,943 million yen (104.3% of plan), ordinary profit was 91,525 million yen (105.7% of plan), and profit attributable to owners of parent was 64,303 million yen (109.5% of plan). On a non-consolidated basis, net sales were 1,163,138 million yen (+18.1%) and operating profit was 81,196 million yen (+22.1%). In the fourth quarter alone (October–December 2025), consolidated net sales were 317,071 million yen (+11.1%) and ordinary profit was 23,453 million yen (+7.0%). Consolidated ROE was 16.8%, the equity ratio stood at 54.1% as of December 31, 2025 (equity of 394,324 million yen against interest-bearing debt of 7,855 million yen), and cash flow from operating activities was 92.2 billion yen.

Item (Consolidated)	FY2025	FY2024	Change YoY	Ratio to Plan*
Net sales	1,322,791 million yen	1,107,668 million yen	+19.4%	104.9%
Operating profit	89,943 million yen	74,360 million yen	+21.0%	104.3%
Ordinary profit	91,525 million yen	75,931 million yen	+20.5%	105.7%
Profit attributable to owners of parent	64,303 million yen	53,481 million yen	+20.2%	109.5%

*Ratio to plan is compared with the revised plan of August 1, 2025.

Segment Results

By consolidated segment, the SI (system integration) business posted net sales of 902,915 million yen (FY2024: 727,814 million yen) and the S&S (service & support) business posted 419,875 million yen (FY2024: 379,853 million yen). The company describes FY2025 — the year of the Windows 10 end of support (EOS) — as a ‘well-balanced expansion of both SI business and S&S business.’ Non-consolidated gross profit rose to 232.0 billion yen (+12.3% year on year), with the SI business contributing 123.7 billion yen (+11.7%) and the S&S business 108.2 billion yen (+12.9%); S&S business gross profit covered 71.8% of total company SG&A expenses in 2025.

Unit sales reflect the PC replacement cycle: 2,152,397 PCs were sold (+51.1% year on year) and total client machines reached 2,368,548 units (+59.9%), while copier units rose to 38,315 (+6.9%) and servers declined to 17,738 units (-4.8%). Among key strategic businesses (non-consolidated), the ‘tanomail’ mail-order business grew to 228,410 million yen (+8.9%), exceeding 200 billion yen in annual sales, with 2,259,214 registered accounts; OSM (Otsuka Security Management) expanded 26.1% to 160,606 million yen; ODS (Otsuka Document Solutions) rose 7.4% to 61,839 million yen; and SMILE package software sales declined 8.0% to 14,750 million yen. The cloud-related business recorded annual net sales of ¥72.0 billion (+26.4%). In the fourth quarter, non-consolidated sales growth by segment was: Supplies +14.2%, Maintenance, etc. +11.3%, SI related products +9.5%, and Custom-made software etc. +3.8%.

Segment (Consolidated Net Sales)	FY2025	FY2024
SI business	902,915 million yen	727,814 million yen
S&S business	419,875 million yen	379,853 million yen
Total	1,322,791 million yen	1,107,668 million yen

FY2026 Forecast

For FY2026 (January–December 2026), the company plans consolidated net sales of 1,311,000 million yen, operating profit of 90,000 million yen, ordinary profit of 90,100 million yen, and profit attributable to owners of parent of 61,130 million yen. By segment, SI business net sales are planned at 857,100 million yen, a decline from FY2025, while S&S business net sales are planned to grow to 453,900 million yen. The company also shows FY2027 targets of 1,361,000 million yen in net sales, 94,500 million yen in operating profit, 94,600 million yen in ordinary profit, and 65,010 million yen in profit. The basic policy for 2026 carries the slogan ‘Getting close to customers and growing together with customers through AI and Security.’

Item (Consolidated)	FY2026 (Plan)	FY2027 (Target)	FY2025 (Actual)
Net sales	1,311,000 million yen	1,361,000 million yen	1,322,791 million yen
Operating profit	90,000 million yen	94,500 million yen	89,943 million yen
Ordinary profit	90,100 million yen	94,600 million yen	91,525 million yen
Profit attributable to owners of parent	61,130 million yen	65,010 million yen	64,303 million yen

Shareholder Returns

The annual dividend for FY2025 is 90.0 yen per share, consisting of an interim dividend of 45.0 yen and a year-end dividend of 45.0 yen, for a dividend payout ratio of 53.1% on earnings per share of 169.58 yen. For FY2026, the company plans an annual dividend of 95.0 yen per share (interim 45.0 yen, year-end 50.0 yen), a payout ratio of 58.9% on planned earnings per share of 161.21 yen. The company’s dividend chart shows a 50% line for the dividend payout ratio, and per-share figures are listed after retroactive adjustment for past stock splits.

Item	FY2025	FY2026 (Plan)
Dividend per share (Interim)	45.0 yen	45.0 yen
Dividend per share (Year-end)	45.0 yen	50.0 yen
Dividend per share (Annual)	90.0 yen	95.0 yen
Dividend payout ratio	53.1%	58.9%
Earnings per share	169.58 yen	161.21 yen

Medium-Term Plan / Topics

Under its medium- to long-term management policy, the company aims to ‘maintain stable growth while responding to changes in the environment,’ with both the operating profit to net sales ratio and the ordinary profit to net sales ratio firmly established at 7% or more, a workforce plan calling for slight increases while focusing on productivity improvements, and higher per-head productivity through efficient utilization of people, goods, money, and information. On customer-related KPIs, the number of customer companies reached 311,000 (+5.4% versus a +2.0% target), exceeding 300,000 companies, and sales per company reached 3.73 million yen (+12.0% versus a +3.0% target), increasing by double digits for three consecutive years; the number of trading accounts was 1,012,000 (+6.9%). The consolidated workforce stood at 10,079 regular employees as of December 31, 2025. For 2026, the company positions AI and security as focus areas under its ‘AI Happiness’ multi-vendor AI solutions lineup, plans to start a security measures evaluation system around the end of 2026, and will hold the Jissen (Practical) Solution Fair 2026 under the theme ‘Expanding through AI! Entire DX’ in Tokyo on February 4–6 and in Osaka on February 18–19, 2026.

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.