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TDC SOFT (TSE:4687) Stock Sees Revenue Growth As Profit Pressure Persists

Simply Wall St · 2d ago

TDC SOFT stock closed at ¥941 today after a weak run over the past week and quarter, yet the latest earnings tell a more nuanced story. Q1 2027 revenue came in at ¥11,808.3m and basic earnings per share printed at ¥19.06. That keeps the trailing P/E near 11.7x, still below both Japan’s IT sector and broader market multiples. The market is focused on the recent share price drift. Long term investors are more likely to focus on whether this profit profile and the 3.61% dividend yield justify the current valuation.

Is TDC SOFT at 11.7x P/E a genuine value opportunity, or is it simply priced that way for a reason? See how today’s share price and cash flow compare in our valuation analysis for TDC SOFT

Q1 2027 Earnings Summary

  • Revenue (Q1 2027 vs. Q1 2026): ¥11,808.3m vs. ¥11,355.0m (up about 4.0%)
  • Net Income (Q1 2027 vs. Q1 2026): ¥894.63m vs. ¥1,016.0m (down about 11.9%)
  • Basic EPS (Q1 2027 vs. Q1 2026): ¥19.06 vs. ¥21.55 (down about 11.6%)
  • Trailing 12 month Net Income (Q1 2027 vs. Q1 2026): ¥3,759.04m vs. ¥3,689.0m (up about 1.9%)

Tired of scrolling through dense earnings tables and raw figures for TDC SOFT? Get a clear visual read on the stock with a full breakdown of its valuation in the company report for TDC SOFT.

TSE:4687 Trailing 12-Month Revenue & Expenses Breakdown as at Aug 2026
TSE:4687 Trailing 12-Month Revenue & Expenses Breakdown as at Aug 2026

TDC SOFT earnings that back the DX story

TDC SOFT’s DX-led narrative still has support from the latest numbers. Revenue in Q1 2027 sits above Q1 2026 and trailing 12 month net income is slightly higher as well. That points to a business model that is still finding work and converting it into profit. For investors who see TDC SOFT as a diversified IT partner across cloud, ERP and automation, the combination of steady sales and maintained profitability keeps the long term digital transformation story intact.

Short term profit pressure keeps TDC SOFT honest

The weaker tone in TDC SOFT’s share price over the past week and quarter lines up with softer earnings momentum. Q1 2027 net income and basic EPS are both lower than Q1 2026, which means profit growth is not keeping pace with revenue. That can feed concerns about pricing, mix or cost pressure in a competitive IT services market. For cautious investors, this print reinforces the idea that TDC SOFT may face nearer term margin headwinds even if headline demand indicators look stable.

With TDC SOFT trading below peer P/E multiples while its market price sits above the stated DCF value, you should verify how robust the balance sheet really is. Analyze TDC SOFT’s liquidity and leverage in our financial health analysis of TDC SOFT stock.

Stay Ahead With Simply Wall St

If TDC SOFT’s 11.7x P/E and recent profit pressure make you want to time your entry carefully, register for free with Simply Wall St and add it to your Watchlist to track share price against fair value and key earnings updates. Once you own TDC SOFT or other stocks, use the Portfolio Command Center to keep your holdings organised and focus only on the most important changes that could affect your thesis. For longer term context and fresh angles, tap into the Community to see how other investors are thinking about similar risks and opportunities. This can help you spot potential catalysts or red flags early so you can stay a step ahead of the market.

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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.