Ridge-i Inc. hits temporary limit-up after raising fiscal year July 2026 earnings forecast on large-scale orders from major existing clients

Ridge-i <5572> surged to briefly hit its daily limit-up of 3,785 yen after upgrading its consolidated earnings forecast for the fiscal year ending July 2026 after the market close on Friday, June 12.

It raised its revenue forecast to 2.90 billion yen from 2.80 billion yen (up 11.8% year-on-year), operating profit to 500 million yen from 345 million yen (up 76.6% year-on-year), and net profit to 370 million yen from 210 million yen (2.7 times the prior-year level).

The upgrade reflects a robust project pipeline driven by expanding demand for generative AI consulting and development services, fueled by repeat orders and larger-scale projects from major existing clients. Additionally, a substantial portion of a roughly 400 million yen order from its capital and business alliance partner, SBI Holdings <8473>, is now slated for revenue recognition within the current fiscal year. Earnings were also lifted by improved gross profit margins and employee utilization rates from larger, longer-term contracts, alongside lower client acquisition costs due to a high volume of orders from existing accounts and partners.

Simultaneously, the company released its nine-month financial results through April 2026. Revenue rose 1.5% year-on-year to 2.08 billion yen, operating profit jumped 51.2% to 401 million yen, and net profit grew 88.2% to 249 million yen.

Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.