NEC (6701) investor relations material

Executive summary

• Q1 FY2027 saw strong revenue and profit growth, led by IT Services and Social Infrastructure, with significant contributions from Domestic IT and Aerospace & National Security.

• Acquisition of CSG Systems International, Inc. in May 2026 boosted international results and expanded digital platform offerings.

• Segmentations were updated, and prior year numbers restated for comparability.

• Full-year forecasts were revised upward based on robust Q1 performance.

Financial highlights

• Q1 revenue rose 14.5% year-on-year to JPY 819.8 billion; non-GAAP operating profit surged 86.9% to JPY 74.7 billion.

• Non-GAAP net profit attributable to owners increased 173.2% to JPY 60.9 billion; EPS up to 46 JPY.

• Operating profit margin improved to 9.1% from 5.6% year-on-year.

• BluStellar revenue up 33%, profit up JPY 7.6 billion year-on-year.

• Aerospace & National Security revenue up nearly 50%, submarine systems turned profitable.

Outlook and guidance

• Full-year revenue forecast revised up by JPY 40 billion to JPY 3,540 billion; non-GAAP operating profit up by JPY 10 billion to JPY 430 billion.

• Non-GAAP net profit forecast increased to JPY 290 billion; dividend per share maintained at 40 JPY.

• IT Services revenue forecast up JPY 20 billion to JPY 2,175 billion; non-GAAP operating profit up JPY 5 billion to JPY 329 billion.

• Social Infrastructure profit forecast up JPY 45.6 billion to JPY 9.9 billion for the full year.

• CSG consolidation impact not yet fully included; to be updated at first half earnings.