IT Services & Telecoms: Earnings Outlook (Jul-Sep): Hopes for a comeback by unpopular stocks

We highlight key stocks to watch in Jul-Sep results, including our views on FY2027 earnings and near-term catalysts. Cybersecurity has been the recent focal point in the IT services industry, and in our October 7 report we confirmed a sharp increase in the number of cyber incidents at Japanese companies since September 2026. We therefore believe that any announcements suggesting that earnings will benefit from the cybersecurity theme could serve as qualitative catalysts. Otsuka Corporation (4768, Underweight) is the only company we expect to deliver an earnings surprise around results. On the other hand, we think the market may view Nomura Research Institute (NRI;