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NEC (6701) investor relations material
NEC Q2 2027 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
H1 revenue was ¥1,753,857 million, up 11.7% YoY; non-GAAP operating profit rose 47.7% to ¥188,298 million.
FY2027 revenue and non-GAAP operating profit forecasts were raised to ¥3,740 billion and ¥460 billion, respectively.
IT Services and Social Infrastructure both delivered revenue and profit growth; CSG consolidation from May 2026 contributed to International IT Services growth.
Financial highlights
H1 non-GAAP net profit was ¥146.7 billion, up ¥68.1 billion; non-GAAP EPS rose to ¥111 from ¥59.
Pro forma H1 revenue, assuming CSG consolidation from Apr. 1, 2025, rose 6.6% to ¥1,767.6 billion; non-GAAP operating profit increased ¥46.7 billion to ¥187.6 billion.
Gross profit was ¥588,741 million versus ¥489,251 million YoY; SG&A expenses increased to ¥424,224 million from ¥375,522 million.
Operating cash flow was ¥18,600 million; investing cash flow was -¥431,193 million, including ¥413,357 million for newly consolidated subsidiaries.
Outlook and guidance
FY2027 revenue forecast rose ¥200 billion to ¥3,740 billion; non-GAAP operating profit rose ¥30 billion to ¥460 billion and non-GAAP net profit rose ¥20 billion to ¥310 billion.
FY2027 non-GAAP operating margin forecast is 12.3%; free cash flow forecast improved from -¥390 billion to -¥90 billion, while dividend guidance remains ¥40/share.
International IT Services FY2027 forecast increased ¥170 billion to ¥620 billion in revenue and ¥25 billion to ¥77 billion in non-GAAP operating profit.
Social Infrastructure FY2027 forecast rose to ¥810 billion revenue and ¥104 billion non-GAAP operating profit; estimates increased for Aerospace/National Security and Submarine Systems.
FY2031 targets remain non-GAAP operating margin of at least 15%, non-GAAP operating profit 2x FY2026, and non-GAAP EPS CAGR of at least 15%; international IT targets were raised.
- FY2024 profit and free cash flow rose; FY2025 targets ¥255B adjusted operating profit.6701
Q4 2024 - Upward financial guidance and ambitious growth targets led by BluStellar, ABeam, and security businesses.6701
Innovation Day 2025 - Secure AI platforms and innovations drive digital transformation, efficiency, and social value.6701
Investor update - Q1 FY27 saw robust profit growth, a major U.S. acquisition, and higher dividend forecasts.6701
Q1 2027 - 2030 plan targets 15%+ annual profit growth, global expansion, and AI-driven transformation.6701
Investor update - Double-digit profit margins and strong IT and defense growth drive higher dividends.6701
Q4 2026 - Net profit nearly doubled as strong IT and defense growth drove upward guidance and restructuring.6701
Q3 2026 - Mid-term targets raised as BluStellar, digital, and global IT drive growth and profitability.6701
Investor Day 2024 - Adjusted operating profit surged despite lower revenue, with strong IT and AI initiatives.6701
Q1 2025
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