Thank you very much for participating today. Today we have already presented the results of Q2 for FY ending March 2026. Let me walk you through the material. This is a table of the content that I'll be explaining to you today. Page three, second quarter financial results. In the first half of FY 2026, revenue was JPY 569.8 billion. Non-GAAP OP was JPY 127.5 billion. Year-on-year, the revenue went up by 5.6%. Regarding non-GAAP OP, year-on-year, it was up by JPY 62.6 billion. This is a dramatic growth being driven by domestic IT as well as aerospace and defense. With that as a backdrop, we decided to upward revise our full-year forecast. Non-GAAP OP, we will be increasing it by JPY 20 billion, amounting to JPY 340 billion. Now, let's look at the details of the financial results of Q2 FY ending March 2026. Firstly, the major indicators for the first half.
Adjusted OP was JPY 131.6 billion, up JPY 70.6 billion year-on-year. Also, regarding adjusted OP margin, it was 8.4%. As compared to our internal forecast, adjusted OP was up by JPY 20 billion. This is due to the unexpected growth of domestic IT services. Now, let's look at the year-on-year changes in adjusted and non-GAAP OP. In the first half of FY 2025, adjusted OP was JPY 61 billion, and non-GAAP OP was JPY 64.8 billion. This is a starting point. IT services and social infrastructure increased dramatically in terms of profit. We invested in AI, therefore, the margin and profit improved by JPY 62.6 billion. Having said that, the first half of FY 2026, non-GAAP OP ended at JPY 127.5 billion. Non-GAAP adjusted items include JPY 4.1 billion of gain from sales of business, amounting to JPY 131.6 billion. Regarding details of translation from GAAP profit to non-GAAP profit, please take a look at pages 19 and 20.
Next, let's explain by segment. The details will be given later. All in all, we can say that both IT services and social infrastructure increased in both revenue and profit. Firstly, IT services segment. Domestic public was a major driver, and year-on-year revenue went up by 3.4%. Regarding the transfer of sales of function for business PC and the termination of a subsidiary company, these are special factors, and if you put aside those factors, there has been an increase of revenue by 9%. Regarding adjusted OP, we were able to increase the profit in line with revenue, and around the BluStellar, we were able to improve the profitability. We were able to register the gains from the sales of business, which was a one-off, and year-on-year there has been an increase of JPY 52 billion.
Also, overseas, there has been the termination of unprofitable business, which reduced the revenue of KMD, and Avaloq profitability improved. Year-on-year, if you decide not to think about the one-off expense, we were able to increase the profit. In terms of domestic IT, BluStellar and base business improved. In terms of BluStellar, because of the improving DX demand, we were able to outdo expectations, and profitability went up as well. Year-on-year, there was an improvement of 19.8%. Due to that, the profit went up to JPY 26.1 billion. The base business, as mentioned before, because of the special factors, the revenue went down. Because of the cost reduction, as well as the improvement of the profit, and also the sales of the business, year-on-year, the revenue was JPY 25.8 billion.
For the large projects were obtained, in the domestic IT services declined by 5% in quarter two. The public sector, while all those of the public domain standardization, platform standardization, and fire disaster prevention projects have largely been continued the life cycle, but enterprise recorded an 11% decline. The DX demand remains robust. ABeam maintained a strong performance with a +13% increase, continuing the trend from the previous year. Next is the social infrastructure development segment. In telecom services, the expenses have been becoming more efficient in centering on the development expenses, and some of the expense has been, some of the project revenue has been pressed forward, therefore it has increased its profit. In ANS, there's been one-off expense of JPY 10 billion has been recorded in submarine cable business, but the aerospace and defense has increased its revenue and profits significantly by executing some of the projects.
Let me talk about now the projection of March ending FY 2026. As I mentioned earlier, we have upwardly corrected the projection of the earnings. The revenue and profits have been increased by JPY 60 billion to reach JPY 3.423 trillion. For the adjusted profits, OP is the JPY 330 billion increased by JPY 20 billion. Non-GAAP operating profits also corrected to be JPY 340 billion by the increase of JPY 20 billion. These corrections have been based on the progress of the performances up until the first half of the year. With the background of the very solid market environment, upside potential has been drawn. As I've been explained from the projection, this risk expense has been already included in projecting the fluctuation of the environment of the business, and the risk has been managed appropriately. We are considering the measures to increase the profits of the next fiscal year as well.
Let me focus on examining the performance projection of the earnings. Let me talk about now the revenues and adjusted OP per segment. This upward adjustment is the IT services segment change. The very good business in public has already included the revenue increase and profit increase. IT services and IT services revenue and profit revenues are the JPY 2.4 trillion, but increased by JPY 60 billion. Adjusted OP is the JPY 321 billion, increased by JPY 20 billion. There's no change in terms of the social infrastructure, which we have already announced in April. The ANS, the aerospace and defense, is very good in the business. There's upside potential, but because of the downside risk in the submarine cable business, we have kept the same projection. Let me describe the announcement of the event. The first one is the IR Day, which will be held on November 13th.
With the capital markets, very much interest is drawn on BluStellar, and security will be the topic to be explained from the person in charge of this business domain. The second one is the Innovation Day on December 3rd. Media and IT analysts and the capital market persons will conduct it in our Tamagawa Works. In addition to the lecture with AI, we will also have the demonstration exhibit of the latest state-of-the-art technology. Please come and participate in our IR Day and Innovation Day. That's all my explanation. Thank you very much.