Cota entered this earnings season with a premium price tag and a reputation for solid but unspectacular profit trends. The stock closed at ¥1,216 on 31 July, and trailing 12 month earnings imply a P/E of 22.8x, slightly above both industry and peer averages. The headline this time is not explosive growth. It is a quiet squeeze on the investment case, as full year earnings power looks concentrated in one standout quarter, and the latest quarter’s basic earnings per share of ¥6.95 underlines how dependent Cota remains on that earlier strength.
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FY 2026 Earnings Summary
- Revenue (Q4 FY 2026 vs. Q4 FY 2025): ¥1,977.663 million vs. ¥1,939.745 million (up 2.0%)
- Net Income (Excl. Extra Items, Q4 FY 2026 vs. Q4 FY 2025): ¥163.804 million vs. ¥135.815 million (up 20.6%)
- Basic EPS (Earnings Per Share, Q4 FY 2026 vs. Q4 FY 2025): ¥6.95 vs. ¥4.66 (up 49.1%)
- Net Profit Margin (Trailing 12 Months vs. Prior Year): 14.9% vs. 13.9% (up 1.0 percentage point)
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Moderate Earnings Support For The Cota Bull Story
The latest quarter gives Cota bulls something to work with. Revenue in Q4 FY 2026 edged higher versus Q4 FY 2025 and net income excluding extra items grew faster than sales. That points to some operating leverage in the core salon focused model. Basic EPS of ¥6.95 for the quarter also lines up with the idea of a steady, cash generative beauty supplier rather than a stalled franchise, even if the full year still leans heavily on one earlier standout period.
Concentrated Earnings Keep The Cota Bear Case Alive
The bear case on Cota is not closed. Management is still relying on a single very strong quarter to carry full year earnings power. The latest Q4 EPS of ¥6.95 is well below the average implied by trailing 12 month results, which highlights that profit delivery is uneven across periods. That pattern can worry investors who want consistency from a defensive beauty stock and it keeps questions open about how resilient earnings might be if salon demand softens.
After an uneven five year earnings record and dependence on one strong quarter, it is worth asking if this is just the visible surface of deeper vulnerabilities in Cota's business model. Review our independent risk analysis for Cota which shows 1 important warning signStay Ahead With Simply Wall St
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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.
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