SMS First Quarter 2026 Earnings: EPS Beats Expectations, Revenues Lag

SMS (TSE:2175) First Quarter 2026 Results

Key Financial Results

• Revenue: JP¥18.7b (up 7.2% from 1Q 2025).
• Net income: JP¥3.94b (up 25% from 1Q 2025).
• Profit margin: 21% (up from 18% in 1Q 2025). The increase in margin was driven by higher revenue.
• EPS: JP¥47.16 (up from JP¥36.70 in 1Q 2025).

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

All figures shown in the chart above are for the trailing 12 month (TTM) period

SMS EPS Beats Expectations, Revenues Fall Short

Revenue missed analyst estimates by 2.6%. Earnings per share (EPS) exceeded analyst estimates significantly.

Looking ahead, revenue is forecast to grow 9.5% p.a. on average during the next 3 years, compared to a 6.6% growth forecast for the Professional Services industry in Japan.

Performance of the Japanese Professional Services industry.

The company's shares are up 1.3% from a week ago.

Risk Analysis

It's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with SMS, and understanding this should be part of your investment process.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.