Fujitsu (6702) Q1 2025 earnings summary

Executive summary

• First quarter revenue rose 3.8% year-over-year to JPY 830 billion, with strong growth in Service Solutions and significant profit recovery from the prior year.

• Adjusted operating profit surged to JPY 23.6 billion, up 806.6% year-over-year, driven by higher revenue and improved profitability, especially in Service Solutions.

• Service Solutions led growth, with revenue up 7.8% to JPY 501.6 billion and adjusted operating profit margin increasing by 2.5 percentage points to 7%.

• Fujitsu Uvance revenue surged 37% year-over-year, contributing significantly to Service Solutions performance.

Financial highlights

• Adjusted operating profit margin improved to 2.8% from 0.3% in 1Q FY2023.

• Net profit for the period increased to JPY 16.8 billion from JPY 4.2 billion year-over-year.

• Free cash flow was JPY 130.4 billion, up JPY 4.8 billion year-over-year; core free cash flow was JPY 167.7 billion, down JPY 15 billion due to higher receivables and prior year asset sales.

• Total assets stood at JPY 3,462.2 billion at quarter-end, with equity attributable to owners at JPY 1,777.6 billion and a ratio of 51.3%.

• Basic EPS for 1Q FY2024 was JPY 9.18, up from JPY 2.26 in 1Q FY2023, reflecting the stock split adjustment.

Outlook and guidance

• FY2024 revenue forecast is JPY 3,760 billion, with adjusted operating profit projected at JPY 330 billion, up 16.3% year-over-year.

• Service Solutions revenue projected to grow 4.3% to JPY 2,230 billion, with margin improving to 12.6%.

• Device Solutions operating profit expected to more than double to JPY 40 billion.

• Core free cash flow for FY2024 forecast at JPY 220 billion.

• Basic EPS for FY2024 is forecast at JPY 122.87.