Nippon Ichi Software Lowers FY2026 Forecast Due to Development Costs

TOKYO, May 15 (Pulse News Wire) – Nippon Ichi Software,inc. (3851.T) revised its fiscal year 2026 earnings forecast due to increased development costs.

The company reported a consolidated revenue of ¥3.606 billion for the fiscal year ending March 31, 2026, compared to a previous estimate of ¥3.475 billion. Operating profit fell below expectations, dropping to ¥-409 million from a projected ¥-393 million. The revision also impacted the operating income, which decreased to ¥-55 million from the earlier projection of ¥-80 million. However, foreign exchange gains helped lift ordinary income to ¥-255 million, surpassing the prior forecast of ¥-296 million. Despite recording a reduction loss on idle assets, net income attributable to shareholders of the parent company improved slightly to ¥151 per share from ¥150 per share previously estimated.

In individual performance, sales reached ¥839 million, exceeding the previous forecast of ¥784 million. Nevertheless, higher development expenses led to a decline in ordinary income to ¥-264 million from ¥-263 million. Net income per share was adjusted to ¥131, up from the initial estimate of ¥130. The adjustments stem primarily from elevated development expenditures and foreign exchange impacts. The company attributes the positive variance in sales to strong overseas market performance and increased royalties received from subsidiaries abroad.