NTT (9432) investor relations material

Executive summary

• Operating revenues, operating profit, and profit all increased year-over-year for the nine months ended December 31, 2025, with operating revenues reaching record-high levels.

• Q3 saw stable performance across segments, with one-off gains in data center and government subsidies, and continued strong demand in data center and oBaaSas businesses.

• Public sector orders declined year-on-year due to last year's high-margin projects, but this is not expected to continue into next year.

• Significant progress was made in mass production of photonics-electronics convergence devices and the social implementation of AI integrating digital and physical domains.

• SBI Sumishin Net Bank, Ltd. became a consolidated subsidiary on October 1, 2025, expanding the group’s financial business capabilities.

Financial highlights

• Operating revenues: ¥10,421.0B (+3.7% year-over-year); EBITDA: ¥2,657.3B (+4.1%); operating profit: ¥1,457.1B (+4.1%); profit attributable to the company: ¥926.1B (+8.9%).

• Q3 included approximately JPY 5 billion in one-off data center fee income and JPY 3 billion in North American government subsidies.

• Nine-month total for one-off data center gains is about JPY 10 billion.

• Total assets as of December 31, 2025, reached ¥46,834,791 million, up from ¥30,062,483 million at March 31, 2025.

• Dividends per share for the year ending March 31, 2026, are forecast at ¥5.30, up from ¥5.20 in the prior year.

Outlook and guidance

• Full-year operating revenues are forecast at ¥14,164,000 million, up 3.4% year-over-year, with profit attributable to shareholders expected at ¥965,000 million, a 3.5% increase.

• FY2025 operating revenues forecast revised down by ¥26.0B from initial forecast; EBITDA and operating profit forecasts also revised downward.

• No major capital recycling or data center asset sales planned for Q4; future sales will depend on market conditions.

• Next fiscal year, profit margin improvements are targeted, but Q4 margins may not match Q3 due to year-end adjustments.

• AI disruption is seen as an opportunity for new business, with no current negative impact on revenue.