Ascentech (3565): FY2025 Results Summary — Ordinary Profit Up 137.5%; Medium-Term Plan Achieved One Year Ahead of Schedule

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

Note: Ascentech does not publish an English results presentation; this article is an English translation of the Japanese-language article on our sister site Investalk, which is based on the company’s Japanese-language IR materials (the results briefing materials for the most recent full fiscal year), with figures transcribed as reported. Ascentech’s fiscal year ends in January; following this site’s convention, the fiscal year ended January 2026 is classified as FY2025, while the body text and tables below keep the company’s own labels (FY1/2026 = fiscal year ended January 2026; FY1/2027 = fiscal year ending January 2027).

For FY1/2026 (February 1, 2025 to January 31, 2026), Ascentech achieved a substantial increase in profit, with net sales of 17.42 billion yen (up 19.5% year on year) and ordinary profit of 2.89 billion yen (up 137.5% year on year). All of its business areas — virtual desktop, cloud infrastructure and zero trust security — posted double-digit revenue growth, and on the profit side the company achieved its medium-term management plan one year ahead of schedule. In response, it formulated a new medium-term management plan, “Ascentech Vision2030,” and raised its FY1/2026 dividend forecast from 20 yen to 23 yen, and then to 30 yen.

Consolidated Results (FY1/2026 Actual)

Net sales were 17,426 million yen (up 19.5% year on year), operating profit was 2,840 million yen (up 227.3%; margin 16.3%), ordinary profit was 2,894 million yen (up 137.5%; margin 16.6%), and net income was 2,059 million yen (up 139.6%; margin 11.8%). Achievement rates against the full-year forecast were 99.6% for net sales, 103.3% for operating profit, 111.3% for ordinary profit and 112.5% for net income, with profit landing above the full-year forecast.

Item	FY1/2025 Actual	FY1/2026 Actual	YoY Change
Net sales (¥ million)	14,586	17,426	19.5%
Operating profit (¥ million)	868	2,840	227.3%
Ordinary profit (¥ million)	1,218	2,894	137.5%
Net income (¥ million)	859	2,059	139.6%
Net income per share (yen)	63.82	144.09	125.8%

Results by Business Area

All business areas — virtual desktop, cloud infrastructure and zero trust security — achieved double-digit year-on-year revenue growth. Virtual desktop was 14.39 billion yen (up 15.2% year on year), cloud infrastructure was 2.57 billion yen (up 34.1% year on year), and zero trust security was 450 million yen (up 170.0% year on year). From FY1/2026, the cloud services business area is included in the virtual desktop business area.

Business Area	FY1/2025 (¥ million)	FY1/2026 (¥ million)	YoY Change
Virtual desktop	12,499	14,397	15.2%
Cloud infrastructure	1,919	2,574	34.1%
Zero trust security	168	453	170.0%
Total	14,586	17,426	19.5%

Full-Year Forecast (FY1/2027)

For FY1/2027, the company plans full-year net sales of 17.50 billion yen, operating profit of 2.00 billion yen (margin 11.4%), ordinary profit of 2.10 billion yen (margin 12.0%; up 9.9% versus the previous medium-term management plan) and net income of 1.43 billion yen. Net sales are at the level set in the previous medium-term management plan, while ordinary profit is at a level revised upward from the previous plan. The first-half (FY1/2027) forecast calls for net sales of 8.20 billion yen, operating profit of 900 million yen, ordinary profit of 950 million yen and net income of 655 million yen.

Item	FY1/2027 Full-Year Forecast	FY1/2026 Actual	YoY Change
Net sales (¥ million)	17,500	17,426	0.4%
Operating profit (¥ million)	2,000	2,840	-29.6%
Ordinary profit (¥ million)	2,100	2,894	-27.4%
Net income (¥ million)	1,430	2,059	-30.6%
Net income per share (yen)	99.86	144.09	–

Shareholder Returns

To further enhance shareholder returns, the company decided on a new dividend policy under which it will pay an interim dividend from FY1/2027, making dividends twice a year together with the year-end dividend. Using an annual payout ratio of 45% or more as its benchmark, it aims to pay dividends continuously and stably. The FY1/2026 dividend was raised twice from the initial forecast of 20 yen, to 23 yen and then to 30 yen, with a year-end dividend of 30.00 yen (payout ratio 20.8%). The FY1/2027 dividend forecast takes into account the stock split (three shares for each share of common stock, effective May 1, 2026) and calls for an interim dividend of 7.00 yen and a year-end dividend of 8.00 yen, for a total of 15.00 yen (payout ratio 45.1%). Without taking the stock split into account, the FY1/2027 forecast annual dividend would be 45.00 yen.

Fiscal Year	Interim	Year-End	Total	Payout Ratio
FY1/2025	–	15.00 yen	15.00 yen	23.5%
FY1/2026	–	30.00 yen	30.00 yen	20.8%
FY1/2027 Forecast (after 3-for-1 split)	7.00 yen	8.00 yen	15.00 yen	45.1%

Medium-Term Management Plan / Topics

Having achieved the profit targets of its medium-term management plan one year ahead of schedule, the company formulated a new medium-term management plan, “Ascentech Vision2030,” aimed at further growth. Cumulative shipments of “Remote PC Array,” whose adoption is expanding among local governments and private companies, doubled to 348 units in FY1/2026 (161 units in the previous fiscal year). The company is also moving into the AI infrastructure market, including the announcement of “Edge AI Array,” a new platform optimized for virtual humans.

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.