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Artner (TSE:2163) EPS Drop Tests Bullish Profitability Narrative After Q3 2026 Results

Simply Wall St · 2d ago

Artner (TSE:2163) has laid out a mixed Q3 2026 scorecard, with revenue of ¥3.0 billion and net income of ¥252.5 million translating into EPS of ¥23.8, while trailing 12 month revenue came in at ¥11.8 billion with net income of ¥1.3 billion and EPS of ¥125.4. The company has seen quarterly revenue hover around the ¥2.8 billion to ¥3.0 billion range over the past year, with net income moving from ¥279.5 million in Q3 2025 to ¥252.5 million in the latest quarter. This sets up an earnings picture where subtle shifts in margins matter more than headline growth.

See our full analysis for Artner.

With the latest profit numbers on the table, the next step is to see how this margin story lines up with the dominant narratives investors have been using to frame Artner’s long term potential.

Curious how numbers become stories that shape markets? Explore Community Narratives

TSE:2163 Earnings & Revenue History as at Dec 2025
TSE:2163 Earnings & Revenue History as at Dec 2025

Net Margin Creeps Up To 11.3%

  • Over the last 12 months, Artner converted ¥11,771.4 million of revenue into ¥1,332.2 million of net income, giving it a net profit margin of 11.3% compared with 10.9% a year earlier.
  • Supporters of a bullish view highlight that steady, profitable operations can underpin long term value, and the numbers here give them some backing:
    • Trailing 12 month earnings growth of 12.6% sits below the 16.2% five year average, yet still points to solid profit expansion on top of that 11.3% margin.
    • High assessed earnings quality over the same period reinforces the idea that this margin level is being achieved through underlying operations rather than one off boosts.
📊 Read the full Artner Consensus Narrative.

Growth Slows Versus Five Year Pace

  • Trailing 12 month earnings grew 12.6% compared with an average of 16.2% per year over the past five years, showing that while profits are still rising, the pace has eased back.
  • Investors taking a more cautious angle might focus on this slowdown relative to history, and the quarterly pattern adds to that perspective:
    • Within the current fiscal year, net income slipped from ¥409.1 million in Q2 2026 to ¥252.5 million in Q3 2026 even though revenue stayed around the ¥3,000 million mark.
    • EPS followed the same pattern, moving from 38.5 yen in Q2 2026 down to 23.8 yen in Q3 2026, which may lead cautious investors to watch how well margins hold up from here.

Premium P E But Big DCF Gap

  • The stock trades on a 16.3x trailing P E against a peer average of 10.8x and a sector average of 13.9x, yet the current price of ¥2,042 sits about 39.7% below a DCF fair value of ¥3,385.61.
  • What stands out for valuation focused investors is the tension between those two signals, and they will likely weigh both carefully:
    • On one side, the above peer P E multiple reflects that the market is already paying more for each yen of earnings than for comparable professional services names.
    • On the other, the DCF fair value of ¥3,385.61 versus the ¥2,042 share price, combined with multi year profit growth, suggests room for upside if those earnings remain durable.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Artner's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

Artner’s cooling earnings growth versus its five year pace and recent quarterly margin compression may unsettle investors who prefer steadier, more predictable profit trajectories.

If this slowdown makes you uneasy, use our stable growth stocks screener (2092 results) to quickly focus on companies already delivering consistent earnings and revenue momentum, giving your portfolio firmer footing.

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.