Sansan (TSE:4443) has just wrapped up FY 2026 with fourth quarter revenue of ¥14.5b and basic EPS of ¥21.08, capped by trailing twelve month EPS of ¥53.58 and net income of ¥6.78b that reflect very large year over year earnings growth of 1,498.6%. The company has seen revenue move from ¥40.78b on a trailing basis in FY 2025 Q3 to ¥53.76b by FY 2026 Q4, while five year average earnings growth is cited at 54.9% a year. This sets a clear backdrop for how the latest EPS print sits within a much steeper profit curve. With trailing net margin now reported at 12.6% versus 1% a year earlier, this set of results puts profitability and the quality of those margins front and center for investors weighing the new numbers.
See our full analysis for Sansan.With the headline figures in place, the next step is to set these results against the most widely held narratives around Sansan to see which views the latest margins support and which might need a rethink.
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TTM net income climbs to ¥6.8b
- Over the trailing 12 months, Sansan generated net income of ¥6,778 million on revenue of ¥53,761 million, giving a net margin of 12.6% compared with 1% a year earlier.
- What stands out for a bullish view is how this very large year over year earnings increase of 1,498.6% lines up with a five year average earnings growth rate of 54.9%, which suggests
- the recent ¥2,669 million net income in FY 2026 Q4 and ¥53.58 TTM EPS are being read as part of a wider profit ramp rather than a one off, supporting the idea of a company that has already made a clear shift into higher profitability, and
- the move in net margin to 12.6% gives bulls a concrete profitability level to point to when they argue Sansan has turned prior weaker periods, such as the FY 2025 Q4 loss of ¥1,273 million, into a more resilient earnings profile.
Revenue trend vs mid teens growth forecasts
- On a quarterly view, Sansan’s revenue stepped from ¥11,079 million in FY 2025 Q3 to ¥14,496 million in FY 2026 Q4, while on a trailing 12 month basis it moved from ¥40,781 million in FY 2025 Q3 to ¥53,761 million by FY 2026 Q4.
- Supporters of a bullish narrative highlight that modelled revenue growth of about 14.3% per year and earnings growth of roughly 24.8% per year sit alongside this reported TTM revenue base of ¥53,761 million and TTM net income of ¥6,778 million, and that combination
- uses the step up from FY 2026 Q1 revenue of ¥12,283 million to Q4 revenue of ¥14,496 million to argue Sansan is already operating at a higher scale than in FY 2025, and
- leans on the TTM EPS of ¥53.58 as evidence that recent profit levels are meaningfully above those implied by the earlier TTM EPS of ¥3.36 in FY 2025 Q4, which bullish investors see as consistent with the growth rates embedded in those forecasts.
Valuation tension at 34.4x P/E
- Sansan’s trailing P/E of 34.4x sits between a cited peer average of 76.4x and the JP Software industry average of 17.3x, while the current share price of ¥1,850 compares with a DCF fair value of about ¥4,447.08 that is 58.4% higher than the market price in the data.
- Critics with a more bearish tilt point to the stock’s recent share price volatility and its P/E premium to the JP Software industry as signs that expectations are already demanding, yet this is set against
- a DCF fair value of ¥4,447.08 that is well above the current ¥1,850 share price, which challenges a simple bearish claim that the stock is obviously expensive on all measures, and
- TTM net income of ¥6,778 million and a 12.6% margin that provide tangible profitability behind that 34.4x P/E, which some investors may see as a different quality profile from companies priced on much higher peer multiples of 76.4x.
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 Sansan'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.
With optimism around Sansan’s earnings shift set against live concerns about its risks, this is a good time to review the numbers yourself, decide how the balance of risks and rewards stacks up in your view, and then check the 3 key rewards and 1 important warning sign.
See What Else Is Out There
While Sansan’s earnings and margins look stronger, the 34.4x P/E, premium to the JP Software industry, and recent share price volatility keep valuation risk on the table.
If that mix of rich expectations and unstable pricing makes you cautious, it is worth lining Sansan up against companies featured in the 19 high quality undervalued stocks.
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.
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