The Tip Desk

Weathernews Posts Record Profit as AI Trims Staffing Costs

Weathernews reported net income of 3,806 million yen for the fiscal year ended May 2026, up 22.2% from a year earlier.

Weathernews Inc. (TSE-4825), a weather and climate information services provider, reported net sales of 24,479 million yen for the fiscal year ended May 31, 2026, up 4.1% from the prior year.

Operating profit reached 5,244 million yen, up 16.1%; ordinary profit rose 22.1% to 5,456 million yen, and net income attributable to owners of the parent climbed 22.2% to 3,806 million yen.

The company said increased telecommunications and weather-data expenses accompanied its push to research and commercialize AI services during the period.

Weathernews reduced work by a cumulative 15,300 hours per month from the start of the prior fiscal year by applying AI to streamline operations for corporate clients, lowering personnel costs from the previous year.

Weathernews said its Sea Domain unit, which serves oceangoing shipping, increased revenue through new customer acquisitions and account upselling in the European market but fell short of its plan after losing some clients.

Total assets rose 2,501 million yen from a year earlier to 28,259 million yen at fiscal year-end, driven by an increase in cash and deposits.

The equity ratio stood at 84.5% at the end of the fiscal year.

Cash flow from operating activities was 3,638 million yen, down from 4,427 million yen a year earlier, after the company paid 1,602 million yen in income taxes on pretax profit of 5,443 million yen.

For the fiscal year ending May 2027, Weathernews forecasts net sales of 25,800 million yen, operating profit of 5,400 million yen, ordinary profit of 5,500 million yen, and net income attributable to owners of the parent of 3,850 million yen, based on an assumed exchange rate of 150 yen to the US dollar.

In July 2026, Weathernews established a new mid-term vision built around three pillars: company-wide transformation through AI integration, a global growth model that combines strengths built up since its founding, and a capital strategy to support those goals.