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Rise Consulting shares slide to year-to-date low, extending losses to fourth session on weak profit outlook
Rise Consulting Group, Inc. <9168> shares tumbled for a fourth straight session to hit a fresh year-to-date low. Following the market close on the 13th, the firm issued its guidance for the fiscal year ending February 2027 alongside results for the previous year. Rise Consulting Group expects sales to reach 10 billion yen (up 18.7% year-on-year), but net income is projected to plunge 46.8% to 663 million yen, fueling investor concerns over the sharp bottom-line contraction. For the current fiscal year, the firm plans to prioritize recruitment to optimize its workforce. Beyond targeting partner-level hires, Rise Consulting Group will overhaul its hiring and retention strategies. Although the company expects revenue growth driven by an expanded consultant headcount and better utilization rates, Rise Consulting Group warns that heavy investment in human capital will significantly weigh on earnings.
For the fiscal year ended February 2026, sales rose 9.7% to 8.421 billion yen, while net income fell 12.1% to 1.246 billion yen. Rise Consulting Group cited recruitment shortfalls and higher turnover as key headwinds, which delayed the hiring of senior partners and hampered the formation of project teams, ultimately dragging down utilization rates.
Source: MINKABU PRESS
*Translated by generative AI. Click here for the original article.
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