Fujitsu (6702) Q2 2025 earnings summary

Executive summary

• First half fiscal 2024 revenue was ¥1,696.6 billion, down 0.9% year-over-year, with record adjusted operating profit of ¥79.5 billion, up 56.6% from last year.

• Service Solutions revenue grew 3.4% to ¥1,017.5 billion, driven by 7% growth in Japan and strong DX/modernization deals.

• Profitability improved through standardization, automation, and business portfolio transformation, especially in Japan, with adjusted operating profit margin rising to 4.7%.

• Hardware and Ubiquitous Solutions saw revenue declines, while Device Solutions posted growth.

• Profit for the period attributable to owners of the parent declined 4.6% year-over-year to ¥35.6 billion.

Financial highlights

• Adjusted operating profit margin improved by 1.7 percentage points to 4.7% overall; Service Solutions margin rose 2.3 points to 8.7%.

• Gross margin increased by 2.6 percentage points to 35.1%.

• Core free cash flow was ¥93.7 billion, up ¥2.6 billion year-over-year; free cash flow including one-time items was ¥48.2 billion, up ¥13.5 billion.

• Total assets at 1H FY2024 end were ¥3,382.1 billion, with equity at ¥1,900.7 billion.

• Adjusted EPS for 1H FY2024 was ¥26.36, up from ¥22.39 in 1H FY2023.

Outlook and guidance

• Full-year 2024 revenue forecast remains at ¥3,760.0 billion, with adjusted operating profit forecast at ¥330.0 billion.

• Service Solutions expected to reach ¥2,230.0 billion in revenue and ¥280.0 billion in adjusted operating profit.

• Core and free cash flow both projected at ¥220.0 billion for FY2024.

• Profit attributable to owners of the parent forecast at ¥212.0 billion, down 16.7% from previous year.

• Adjusted operating profit for FY2024 projected at ¥330.0 billion, up 16.3% year-over-year.