Company Reports

We transfer coverage of Nomura Research Institute, the systems integrator that runs shared back-office platforms for Japanese securities, banking, and insurance firms, with an estimated 50%-80% market share across financial subindustries.

Nomura Research Institute distinguishes itself as the architect and operator of Japan's key financial infrastructure. Unlike typical IT vendors that build custom systems from scratch for each client, NRI operates shared utility platforms used simultaneously by dozens of banks and brokerages. This lets financial institutions share the cost of keeping up with Japan's complex regulations. Because NRI's platforms handle mission-critical tasks, like settling government bonds or executing stock trades, reliability is paramount. Once a client joins, switching risk is prohibitively high, creating a fortress of stable, recurring revenue that underpins our investment thesis.

Nomura Research Institute distinguishes itself as the architect and operator of Japan's key financial infrastructure. Unlike typical IT vendors that build custom systems from scratch for each client, NRI operates shared utility platforms used simultaneously by dozens of banks and brokerages. This lets financial institutions share the cost of keeping up with Japan's complex regulations. Because NRI's platforms handle mission-critical tasks, like settling government bonds or executing stock trades, reliability is paramount. Once a client joins, switching risk is prohibitively high, creating a fortress of stable, recurring revenue that underpins our investment thesis.

Nomura Research Institute reported Q1 fiscal 2026 (ending March 2027) net income of JPY 29.2 billion, up 12% year-over-year. Revenue rose 7.5%, maintaining its mid-single-digit momentum since Q2 fiscal 2025. NRI also completed its JPY 70 billion share repurchase at the end of June 2026.

Nomura Research Institute distinguishes itself as the architect and operator of Japan's key financial infrastructure. Unlike typical IT vendors that build custom systems from scratch for each client, NRI operates shared utility platforms used simultaneously by dozens of banks and brokerages. This lets financial institutions share the cost of keeping up with Japan's complex regulations. Because NRI's platforms handle mission-critical tasks, like settling government bonds or executing stock trade, reliability is paramount. Once a client joins, switching risk is prohibitively high, creating a fortress of stable, recurring revenue that underpins our investment thesis.

Nomura Research Institute's fiscal 2025 (ended March 2026) revenue rose 6.5%, driven by an 8.2% increase in domestic revenue. However, operating profit was down by 56.8% due to overseas impairments. The medium-term plan targets 5.3% annual sales growth and a 21.1% margin in fiscal 2028.

AI-enabled tools for code generation, data migration, and workflow automation are compressing switching costs in Japan's IT services sector, prompting us to reassess the economic moats and valuations of Nomura Research Institute, Obic, and Otsuka.

Nomura Research Institute distinguishes itself as the architect and operator of Japan's key financial infrastructure. Unlike typical IT vendors that build custom systems from scratch for each client, NRI operates shared utility platforms used simultaneously by dozens of banks and brokerages. This model solves a critical problem for financial institutions: It allows them to split the immense cost of keeping up with Japan's complex and ever-changing regulations. Because NRI's platforms handle mission-critical tasks—like settling government bonds or executing stock trades—reliability is paramount. Once a client joins, the operational risk of switching away is prohibitively high, creating a fortress of stable, recurring revenue that underpins our investment thesis.

Nomura Research Institute's December-quarter overseas industrial IT business swung to a JPY 2.3 billion operating loss, driven by weak demand at its overseas subsidiaries. It announced a major restructuring of overseas industrial IT for the March quarter. Full-year guidance remains unchanged.

Nomura Research Institute distinguishes itself as the architect and operator of Japan’s key financial infrastructure. Unlike typical IT vendors that build custom systems from scratch for each client, NRI operates shared utility platforms used simultaneously by dozens of banks and brokerages. This model solves a critical problem for financial institutions: it allows them to split the immense cost of keeping up with Japan’s complex and ever-changing regulations. Because NRI’s platforms handle mission-critical tasks—like settling government bonds or executing stock trades—reliability is paramount. Once a client joins, the operational risk of switching away is prohibitively high, creating a fortress of stable, recurring revenue that underpins our investment thesis.

Nomura Research Institute distinguishes itself as the architect and operator of Japan’s key financial infrastructure. Unlike typical IT vendors that build custom systems from scratch for each client, NRI operates shared utility platforms used simultaneously by dozens of banks and brokerages. This model solves a critical problem for financial institutions: it allows them to split the immense cost of keeping up with Japan’s complex and ever-changing regulations. Because NRI’s platforms handle mission-critical tasks—like settling government bonds or executing stock trades—reliability is paramount. Once a client joins, the operational risk of switching away is prohibitively high, creating a fortress of stable, recurring revenue that underpins our investment thesis.

We initiate coverage on Nomura Research Institute, the architect of Japan’s financial infrastructure. NRI operates shared utility platforms for banks and brokerages, providing mission-critical software for securities settlement and back-office operations.