<div id="readability-page-1"><div><p>m-up holdings (TSE:3661) has just put out its Q3 2026 scorecard, with recent quarterly figures showing revenue moving from ¥6.8b in Q4 2025 to ¥7.4b in Q1 2026 and ¥7.7b in Q2 2026, alongside basic EPS of ¥12.07 and ¥11.84 in Q1 and Q2 respectively and trailing 12 month earnings growth of 66.4%. Over the past few reported periods, revenue has shifted from ¥6.7b in Q3 2025 to ¥7.7b in Q2 2026, while basic EPS has moved from ¥11.48 to ¥11.84 over the same quarters. This gives investors a clear view of how the top and bottom lines have been tracking into this latest release. With the trailing net margin sitting at 8.8% versus 6.9% a year earlier, this set of results keeps the focus squarely on how efficiently m-up holdings is turning its sales into profit.</p> <p>See our full analysis for m-up holdings.</p><p>With the headline numbers on the table, the next step is to see how this earnings profile lines up with the key stories investors have been telling about m-up holdings, and how the latest margin trends might prompt those narratives to adjust.</p> <p>Curious how numbers become stories that shape markets? Explore Community Narratives</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/37a5195c-a666-4a76-902c-bd054c59ea7f/chart/earnings-and-revenue-history?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/37a5195c-a666-4a76-902c-bd054c59ea7f/chart/earnings-and-revenue-history"/><figcaption>TSE:3661 Earnings &amp; Revenue History as at Feb 2026</figcaption></figure> <h2>66.4% earnings growth backs high quality label</h2> <ul> <li>Over the last 12 months, net income was ¥2,529 million on revenue of ¥28,623 million, which supports the 66.4% earnings growth figure tied to m-up holdings over that period.</li> <li>What stands out for the bullish view is that this 66.4% trailing earnings growth sits alongside earnings described as high quality, supported by quarterly net income ranging from ¥819 million to ¥859 million in Q3 2025, Q1 2026, and Q2 2026. This points to a run of sizeable profit contributions rather than a single one off spike.     <ul> <li>Bulls also point to the 5 year net earnings growth rate of 24.9% per year, and the trailing 12 month net margin of 8.8% versus 6.9% a year earlier, as evidence that profit growth is not just a short term event.</li> <li>The quarterly pattern, with revenue moving from ¥6,725 million in Q3 2025 to ¥7,694 million in Q2 2026 while net income held around the ¥800 million level in three different quarters, gives bulls some support for the idea that the business has been able to produce consistent earnings across multiple reporting periods.</li> </ul> </li> </ul> <p>Bulls argue that the combination of high quality earnings, 66.4% trailing growth, and multi year expansion in profits is exactly the kind of profile that can sustain investor interest when shorter term headlines fade. <strong>🐂 m-up holdings Bull Case</strong></p> <h2>8.8% net margin and EPS resilience</h2> <ul> <li>The trailing net margin of 8.8% comes from ¥2,529 million of net income on ¥28,623 million of revenue, and within that, Q1 2026 and Q2 2026 basic EPS of ¥12.07 and ¥11.84 sit close to the Q3 2025 level of ¥11.48 despite quarterly revenue volumes ranging from ¥6,725 million to ¥7,694 million.</li> <li>Supporters of a bullish narrative highlight that this 8.8% margin alongside mid teens EPS figures in most quarters sits in contrast to Q4 2025, where EPS dropped to ¥0.15 on revenue of ¥6,791 million. This suggests that the stronger recent quarters are not just driven by sales size but also by the earnings profile of the underlying operations.     <ul> <li>Quarterly revenue moved from ¥5,837 million in Q1 2025 to ¥7,694 million in Q2 2026, while net income moved from ¥476 million to ¥840 million across those two points, so bulls see a relationship between higher scale and the current margin level.</li> <li>At the same time, critics focused on that very weak Q4 2025 result may see it as a counterpoint to the bullish argument, yet the subsequent Q1 2026 and Q2 2026 profits bring the trailing numbers back in line with the 8.8% margin that investors are using to frame current profitability.</li> </ul> </li> </ul> <h2>P/E of 22.1x versus 35.3% DCF gap</h2> <ul> <li>At a share price of ¥787, the stock trades on a P/E of 22.1x, compared with a JP Software industry average of 17.3x and a peer average of 50.2x, while the latest DCF fair value is ¥1,215.94, implying the shares are about 35.3% below that DCF figure.</li> <li>General market opinion has to balance a bullish style claim that the current price is well below DCF fair value with a more cautious angle that the P/E is higher than the broader industry, and the numbers give weight to both sides.     <ul> <li>On one hand, the 35.3% gap between the ¥787 share price and the ¥1,215.94 DCF fair value, together with 66.4% trailing earnings growth, is often used by optimistic investors as support for a value and growth combination argument.</li> <li>On the other hand, the 22.1x P/E relative to the 17.3x industry average gives more cautious investors a reason to question how much of that trailing growth and margin profile is already being reflected in the current market multiple even if the P/E is below the 50 <h2> Next Steps</h2> Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on m-up holdings's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move. <h2>See What Else Is Out There</h2> Even with strong trailing earnings figures, some investors may be uneasy that the 22.1x P/E sits above the broader JP Software industry average of 17.3x. If that valuation gap makes you want a wider margin of safety, take a few minutes to run through our 21 high quality undervalued stocks and see which names better align with your comfort zone.  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.</li></ul></li></ul><div><h3><strong>New: </strong>AI Stock Screener &amp; Alerts</h3><p>Our new AI Stock Screener scans the market every day to uncover opportunities.</p><div><p>• Dividend Powerhouses (3%+ Yield)<br/>• Undervalued Small Caps with Insider Buying<br/>• High growth Tech and AI Companies</p><p>Or build your own from over 50 metrics.</p></div><p>Explore Now for Free</p></div></div></div>

3661

<p>M-Up Holdings (TSE:3661) reported a 66.4% earnings growth in its Q3 2026 results, with revenue increasing from ¥6.8b in Q4 2025 to ¥7.7b in Q2 2026. Basic EPS for Q1 and Q2 were ¥12.07 and ¥11.84, respectively. The trailing net margin improved to 8.8% from 6.9% a year earlier, indicating efficient profit generation. Despite a higher P/E ratio of 22.1x compared to industry averages, the stock is considered undervalued with a DCF fair value of ¥1,215.94, suggesting a 35.3% upside potential.</p>

M-Up Holdings (TSE:3661) Earnings Growth Of 66.4% Reinforces Bullish Narratives