EPS miss trims SHIFT Inc. (3697.T JPX) to JPY 6.79 on 09 Jan 2026: what to watch next
3697.T stock fell after SHIFT Inc. reported EPS of JPY 6.79 for the quarter ending 2025-05-31, below estimates. The miss accompanied revenue of JPY 33,724,000,000, slightly under forecasts, and a trading close at JPY 955.70 on JPX. We assess the 3697.T stock earnings drivers, valuation, and what the Meyka AI model projects ahead of the next report on 14 Jan 2026.
Earnings recap and market reaction for 3697.T stock
SHIFT Inc. reported adjusted EPS of JPY 6.79, versus an estimate of JPY 12.64 for the fiscal quarter ended 2025-05-31. Revenue printed at JPY 33,724,000,000 versus an estimate of JPY 34,199,000,000, a shortfall of JPY 0.47 billion.
The market closed lower on the print, with 3697.T stock at JPY 955.70, down JPY 6.40 or 0.67% on volume 5,926,500. The muted reaction reflects slower margin recovery and a year-to-date slide of 13.44% in price.
3697.T stock: financials and valuation snapshot
SHIFT shows trailing EPS JPY 33.87 and a trailing P/E of 28.08. Key ratios include price-to-sales 1.93, price-to-book 6.10, and free cash flow yield 1.39%. The company holds cash per share JPY 90.53 and a current ratio of 1.72, supporting liquidity.
Revenue per share stands at JPY 493.07 and return on equity is 23.74%. These figures point to profitable operations but a premium multiple versus the Technology sector average P/E of 26.45 on the JPX.
Meyka AI rates 3697.T with a score out of 100 and forecast
Meyka AI rates 3697.T with a score out of 100: 86.74 (A, BUY). This grade factors in S&P 500 comparison, sector performance, financial growth, key metrics, and analyst consensus. These grades are not guarantees and are not financial advice.
Meyka AI’s forecast model projects a 1-year target of JPY 1,624.72 and a 1-month model of JPY 1,233.78. Versus the current price of JPY 955.70, the implied 12-month upside is 70.05%. Forecasts are model-based projections and not guarantees.
Technical, volume and trading signals for 3697.T stock
Technical indicators show neutral-to-mild bearish bias. RSI is 46.65 and ADX 17.45, signaling no strong trend. Bollinger mid at JPY 962.65 places the last close slightly below the 20-day middle band.
Volume ran at 5.93M, slightly above the 50-day average 5.18M, suggesting investor attention. Short-term support sits near the year low JPY 885.00 and resistance near the 50-day average JPY 990.88.
Analyst-model price targets and valuation scenarios
Use scenario targets to frame risk. A conservative model target is JPY 900.00, implying downside -5.84%. A base-case target is JPY 1,200.00, implying upside 25.50%. A bullish model target is JPY 1,700.00, implying upside 77.84% versus JPY 955.70.
These targets reflect margin recovery assumptions and steady demand for software QA services. Investors should weigh multiples and slower recent free cash flow growth when sizing positions.
Key risks, catalysts and the sector context for 3697.T stock
Risks include softer client spending, margin pressure, and elevated price-to-book at 6.10. Free cash flow fell in recent periods, and EPS growth turned negative year-over-year in the latest filings.
Catalysts include next earnings on 14 Jan 2026, uptake of the CAT test-management tool, and a Technology sector rebound. The sector shows YTD strength, up 22.20%, which could lift valuation multiples if momentum returns on JPX.
Final Thoughts
The 3697.T stock earnings miss centers on softer-than-expected EPS and slightly missed revenue. SHIFT Inc. retains strong margins historically, but the latest quarter showed slower bottom-line recovery. Meyka AI rates 3697.T 86.74 (A, BUY) and projects a 12-month price of JPY 1,624.72, implying 70.05% upside from JPY 955.70. That forecast assumes margin normalization and steady demand for QA services. Traders should watch the upcoming earnings on 14 Jan 2026, cash per share JPY 90.53, and valuation multiples, including P/E 28.08. Use conservative sizing; the conservative target JPY 900.00 limits downside risk while the base target JPY 1,200.00 reflects achievable recovery scenarios. Forecasts are model-based projections and not guarantees.
FAQs
What drove the recent 3697.T stock EPS miss?
The EPS shortfall to JPY 6.79 reflected margin pressure and slightly weaker revenue of JPY 33,724,000,000, below estimates. Cost timing and slower enterprise demand were key near-term factors.
How does Meyka AI view 3697.T stock performance?
Meyka AI rates 3697.T 86.74 (A, BUY) and models a 12-month target JPY 1,624.72, implying about 70.05% upside from current levels. Models are projections, not guarantees.
What key dates should investors watch for 3697.T stock?
Watch the next earnings announcement on 14 Jan 2026, plus interim updates tied to client wins and Japan technology spending. These events can move 3697.T stock materially.
Disclaimer:
Stock markets involve risks. This content is for informational purposes only. Past performance does not guarantee future results. Meyka AI PTY LTD provides market analysis and data insights, not financial advice. Always conduct your own research and consider consulting a licensed financial advisor.
