Financial Wire

Serverworks Lowers Full-Year Net Sales, Operating Profit Forecasts

-- Serverworks (TYO:4434) lowered its net sales forecast for the fiscal year ending February 2027 to 47.2 billion yen from 47.3 billion yen previously, according to a Tokyo bourse filing on Monday.

The IT services company also cut its operating profit estimates to 1.31 billion yen from 1.37 billion yen, and ordinary profit to nearly 1.4 billion yen from 1.42 billion yen.

The downward revisions are part of a broader strategy to build an operational foundation capable of supporting scalable growth in an AI-driven market environment. The company will prioritize resale market share acquisition through large-scale enterprise projects, which temporarily lowers gross profit margins.

To offset this decline, the company plans to control SG&A expenses by improving operational efficiency through internal AI adoption, thereby maintaining ordinary profit margins at previously targeted levels.

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