IT Consulting and Development Services Q3 FY2026: AI lifts sales, profits diverge

Corporate investment in digital transformation and AI is a common tailwind for all five companies. But rising sales do not always translate into higher profits.

• Growing AI and DX demand: NSD benefited from growth in financial IT and its DAS business, where sales rose 29.2% year on year. Systena also captured demand for full-scale generative AI implementation and data utilization.
• Hiring costs shape profits: SHIFT's recruitment activity returned to normal, pushing up hiring costs. Despite 21.4% year-on-year revenue growth, operating profit fell 4.3%. Higher recruitment costs also weighed on Future's margin.
• Higher-value services create a divide: Future's 19.3% operating margin was the highest among the five. Consulting and proprietary services, alongside contract development, are helping differentiate profitability.
• Reporting periods differ: SHIFT reported nine-month cumulative results, Future and Dentsu Soken reported first-half results, and Systena and NSD reported first-quarter results. Year-on-year growth and margins are more useful comparisons than absolute revenue rankings.

NSD showed the strongest momentum in operating profit. In the first quarter, revenue rose 9.6% year on year and operating profit increased 17.4%, the highest growth rate among the five companies. Net profit also climbed 15.2%. Growth came from financial IT as well as focus areas such as AI and data analytics.

At the other end, SHIFT faced the toughest results. Revenue rose 21.4% year on year, the fastest rate among the five, but operating profit fell 4.3% and net profit dropped 36.6%. The consolidation of acquired Nisseicom lifted sales, while hiring costs and spending to win large projects squeezed earnings. Adjusted operating profit, excluding M&A-related costs, still declined 2.1%. That was a smaller fall than the reported figure, but a recovery in profitability remains a challenge.

Future's 19.3% operating margin topped Systena's 16.1%. SHIFT had the lowest margin among the five at 9.8%. Revenue scale and the ability to retain earnings are separate measures of performance.

The companies are pursuing growth in different ways as they tap demand for AI.

• SHIFT: Revenue increased 21.4% year on year, partly due to the consolidation of Nisseicom. The company is stepping up hiring again and preparing for future large projects. The key question is whether higher near-term costs can be offset by improved utilization and project wins.
• Future: IT consulting grew, and the business innovation segment turned profitable. Revenue rose 7.5% year on year and net profit increased 13.0%. However, the operating margin slipped to 19.3% from 19.9% a year earlier. The company also revised its year-end dividend to zero, putting the balance between investment and shareholder returns in focus.
• Systena: Riding demand for generative AI implementation and digital transformation, revenue rose 5.5% year on year and operating profit increased 9.0%. The company is assigning talent to higher-value areas and expanding recurring-revenue businesses.
• NSD: DAS revenue rose 29.2% year on year, while overall operating profit increased 17.4%. A key test is whether AI and data analytics can deliver results as growth pillars in the first year of its medium-term management plan.
• Dentsu Soken: Growth in financial and business solutions lifted revenue 10.5% year on year and operating profit 15.8%. The challenge is how far growth in stronger areas can offset lower profit in manufacturing solutions.

Even when demand is strong, converting orders into profit depends on talent and project management. Company disclosures and the industry's structure point to several risks.

• Rising labor and recruitment costs: Continued competition for talent could push up wages and hiring expenses. Higher recruitment costs are reflected in SHIFT's decline and Future's lower margin.
• Monetizing AI investment: More generative AI projects will not necessarily boost profits if development and training costs cannot be recovered. The transition from proof-of-concept work to full-scale deployment is also important.
• Managing large-project economics: Delays or specification changes can reduce utilization and add costs. Investors should look beyond sales growth to operating margins and project profitability after orders are won.
• Shifts in customer investment plans: A weaker economy, higher interest rates or deteriorating corporate earnings could delay or reduce digital transformation projects. Dependence on particular industries or large customers also warrants attention.
• Price competition and technological change: As generative AI changes development processes, demand and pricing for traditional labor-based models could shift. Differentiation and productivity gains will be critical.

SHIFT led revenue growth with a 21.4% year-on-year increase, but NSD was ahead in operating profit growth at 17.4%. Dentsu Soken also increased operating profit 15.8%, showing that revenue-growth rankings do not match profit-growth rankings.

Future had the highest operating margin at 19.3%, followed by Systena at 16.1%. Competitiveness will depend not only on the scale of contract development, but also on how effectively companies turn consulting, proprietary products, data and AI into profit. Because reporting periods differ, absolute revenue and operating profit amounts are not directly comparable.

When choosing an employer, look beyond sales growth to the areas where a company is investing in people. NSD is focused on financial IT and DAS, Systena on AI, digital transformation and higher-value services, and Future on IT consulting. SHIFT is increasing hiring, making business expansion and talent development key areas to watch.

Alongside the ability to use AI, skills in defining business problems and working with clients to refine requirements are increasingly important. Check the business unit, training programs and project practices, and consider whether the company's investment priorities match the expertise you want to build.