SHIFT Inc. raised its operating and ordinary profit forecasts for the fiscal year ending August 2025, citing successful efficiency measures that drove utilization rates higher at the Japanese software testing specialist.
The Tokyo-based company boosted its operating profit guidance to ¥15 billion ($102 million) from ¥13.5 billion, representing an 11.1% increase. Ordinary profit was revised upward to ¥14.5 billion ($99 million) from ¥13.5 billion, a 7.4% improvement.
SHIFT provides software quality assurance and testing services across two main segments: enterprise markets serving financial, distribution, manufacturing and telecommunications companies, and entertainment markets focused on gaming companies.
The upward revision reflects operational improvements that have pushed gross profit margins to their highest levels since the company’s stock market debut. SHIFT has been actively implementing utilization rate enhancement initiatives that are now yielding measurable results.
Revenue projections remained unchanged at ¥130 billion ($885 million), while net profit guidance was held steady at ¥7.9 billion ($54 million). The company cited a conservative approach regarding special gains and losses that could be influenced by external market conditions.
SHIFT, which was founded in 2005 and went public with ticker symbol 3697, has grown to employ over 12,000 staff members. The earnings revision comes as Japan’s software testing market continues expanding alongside growing digitalization across industries.