OBIC Co., Ltd., the Tokyo-listed maker of the OBIC7 enterprise resource planning suite, reported first-quarter results on July 22 for the period from April to June 2026: net sales rose 13.2% to ¥36.7bn, operating profit climbed 15.7% to ¥24.9bn, and net profit attributable to shareholders grew 16.3% to ¥22.7bn. Those are strong numbers for an already highly profitable company; operating profit alone runs at roughly two-thirds of sales.
But one line further down the filing tells a different story. Comprehensive income, the broader measure that folds in unrealized gains and losses on securities holdings, fell 77.6% year-on-year to ¥7.1bn, from ¥31.8bn a year earlier. The gap is explained by OBIC's balance sheet rather than its software business. Investment securities on the books fell to ¥309.5bn at quarter-end, from ¥332.4bn in March, a ¥22.8bn decline that included both sales and lower valuations. The valuation swing on those holdings alone moved ¥15.0bn against the company compared with a year earlier, offsetting most of the net income gain once folded into the comprehensive-income total. For a company whose full-year revenue guidance is ¥148.7bn, an investment book more than double that size is not a footnote; it is a second exposure whose swings show up in reported results even while the software business keeps growing.
That software business is doing the heavy lifting. System Integration sales, covering new OBIC7 builds for manufacturing, distribution, retail and financial clients, rose 11.8% to ¥15.1bn, with segment profit up 14.3% to ¥9.6bn. System Support, the recurring cloud hosting, maintenance and operations business, grew faster and is now the larger segment: sales up 15.5% to ¥19.6bn and profit up 16.6% to ¥14.6bn. Office Automation, the smallest unit, added 2.2% to reach ¥2.0bn in sales.
| Metric | Q1 Actual (Apr-Jun 2026) | Q1 YoY Change | Full-Year Guidance (unchanged) |
|---|---|---|---|
| Net sales | ¥36.7bn | +13.2% | ¥148.7bn (+10.0%) |
| Operating profit | ¥24.9bn | +15.7% | ¥98.0bn (+10.3%) |
| Ordinary profit | ¥32.0bn | +17.7% | ¥114.5bn (+9.3%) |
| Net profit | ¥22.7bn | +16.3% | ¥82.0bn (+9.1%) |
Despite outrunning its own full-year pace in the first quarter, OBIC left its guidance for the year to March 2027 untouched at the levels it first published on April 21: ¥148.7bn in sales, ¥98.0bn in operating profit and ¥82.0bn in net profit. That is a familiar pattern for large, cautious Japanese companies treating a strong opening quarter as a reason for restraint rather than an upgrade.
The balance sheet backs up that caution. Total assets fell ¥34.8bn to ¥584.0bn, largely on the securities decline and a ¥13.1bn drop in cash to ¥194.3bn, most of it spent on ¥20.4bn in dividend payments and ¥10.0bn in treasury share buybacks during the quarter. Even after that spending, the equity ratio rose to 84.4% from 83.4% in March, underlining how little debt OBIC carries. The company is guiding for an annual dividend of ¥94 per share for the year, up from ¥84 paid out on last year's results, with quarterly earnings per share at ¥53.01 versus ¥44.36 a year earlier.