# CLPS Reports 4.7% Revenue Growth to $172M for Fiscal 2026 Driven by Global Expansion

- URL: https://stocks.freetheai.org/news/clps-reports-4-7-revenue-growth-to-172m-for-fiscal-2026-driven-by-global-937d43
- Published: 2026-10-16T12:30:00Z
- Category: earnings; sentiment: mixed; impact: medium
- Symbols: [NASDAQ:CLPS](https://stocks.freetheai.org/symbols/NASDAQ-CLPS)
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CLPS Incorporation (NASDAQ:CLPS) reported a 4.7% increase in full-year revenue for fiscal 2026, reaching $172.2 million compared to $164.5 million in fiscal 2025. For the second half of the fiscal year ended June 30, 2026, revenue rose 6.6% year-over-year to $87.1 million. The growth was driven by higher international sales and strong demand for customized IT solutions, which helped offset revenue pressure caused by the downsizing of a major client's solution centers in China.

The company experienced significant momentum outside of mainland China, where full-year revenue jumped 47.5% to $62.7 million. Key regional drivers included strong growth in Hong Kong, Japan, Singapore, and the U.S. Meanwhile, revenue from customized IT solution services surged 113.9% to $5.9 million as the company commercialized applications involving artificial intelligence, robotic process automation, and digital banking solutions. However, front-loaded investments in these technology initiatives, alongside non-operational charges including a goodwill impairment and a bad debt provision, weighed on near-term profitability.

Moving into fiscal 2027, CLPS Incorporation plans to apply tighter cost controls to its customized IT solutions business while continuing to scale its international footprint and digital services. Investors will be monitoring whether the company can convert top-line growth into sustained profitability as short-term charge impacts dissipate and share repurchases under its 1,000,000-share buyback program proceed.

## Key points

- Full-year fiscal 2026 revenue grew 4.7% year-over-year to $172.2 million, while second-half revenue rose 6.6% to $87.1 million.
- Revenue generated outside mainland China jumped 47.5% for the fiscal year to $62.7 million, led by expansion in Hong Kong, Japan, Singapore, and the U.S.
- Customized IT solution services revenue surged 113.9% to $5.9 million in fiscal 2026, supported by new artificial intelligence and automation deployments.
- Profitability was impacted by investments in emerging technology commercialization, a goodwill impairment, and a one-time bad debt provision on related-party loans.

## Questions and answers

### What were CLPS Incorporation's revenue results for fiscal 2026?

CLPS Incorporation reported full-year fiscal 2026 revenue of $172.2 million, up 4.7% from $164.5 million in fiscal 2025. Second-half revenue grew 6.6% year-over-year to $87.1 million.

### Why did CLPS Incorporation experience revenue pressure in China?

Revenue was pressured by the ongoing downsizing and restructuring of a major key client's China Solution Centers, which CLPS counteracted through international expansion and customized IT services growth.

### What impacted CLPS Incorporation's profitability in fiscal 2026?

Profitability was affected by investments in emerging technology projects, along with non-structural charges including a goodwill impairment and a one-time bad debt provision on related-party loans.