Digital Arts revises full-year forecasts, strong contracts offset by lower sales outlook

Digital Arts Inc. announced revisions to its full-year financial forecasts for the fiscal year ending March 31, 2026. The company now expects contracts to reach JPY 19,000 million, a significant increase of JPY 2,525 million (15.3%) from the previously announced JPY 16,475 million. This upward revision in contracts is primarily attributed to strong orders related to Phase 2 of the GIGA School Concept.

Despite the surge in contracts, consolidated net sales are revised downwards to JPY 11,800 million from JPY 12,550 million, a decrease of JPY 750 million (6.0%). Operating profit is also adjusted lower to JPY 5,607 million from JPY 6,150 million (down 8.8%), and profit attributable to owners of parent is expected to be JPY 3,880 million, down from JPY 4,200 million (down 7.6%). The company attributes the discrepancy to accounting rules, which recognize revenue from cloud service-based products, prevalent in GIGA School projects, on a prorated monthly basis over the service period.

The consolidated financial results for the six months ended September 30, 2025, show net sales of JPY 4,992 million (up 3.2% year-on-year) and contracts of JPY 6,629 million (up 46.8% year-on-year), reflecting robust demand in the public sector market. Basic earnings per share are now forecast at JPY 286.06, down from JPY 308.76.