NEC (6701) investor relations material

Executive summary

• Q1 FY27 saw strong revenue and profit growth in 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 segment performance.

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

• Strategic AI partnerships and organizational integration initiatives were announced, including collaboration with Anthropic and merger with NEC Solution Innovators.

Financial highlights

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

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

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

• Full-year revenue forecast revised up by 40 billion JPY to 3.54 trillion JPY; non-GAAP operating profit forecast up by 10 billion JPY to 430 billion JPY.

• CSG consolidation impact not yet fully included in forecasts.

Outlook and guidance

• Full-year forecasts revised upward based on strong Q1 progress, with revenue forecast at 3,540,000 million JPY and non-GAAP operating profit at 430,000 million JPY.

• Non-GAAP net profit forecast increased to 290,000 million JPY; dividend per share set at 40 JPY.

• IT Services revenue forecast up by 20 billion JPY to 2.175 trillion JPY; Social Infrastructure profit forecast increased by 45.6 billion JPY to 9.9 billion JPY.

• Allowances maintained for component shortages and macroeconomic uncertainty.