Fujitsu (6702) Q2 2027 earnings summary

Executive summary

• 1H FY2026 revenue was ¥1,626.358bn, up 3.8% YoY; adjusted operating profit was ¥113.961bn, down 6.1%.

• Service Solutions growth was offset by hardware costs, lower Ubiquitous volumes and higher R&D; FY2026 adjusted guidance was unchanged.

Financial highlights

• Adjusted net profit was ¥87.876bn, essentially flat YoY; reported profit attributable to owners of the parent was ¥82.581bn versus ¥262.002bn.

• Adjusted operating margin was 7.0%, down 0.7 percentage points; gross profit was ¥548.164bn and SG&A expenses were ¥457.652bn.

• Core free cash flow was ¥94.9bn, down ¥69.3bn; reported free cash flow was ¥87.1bn.

Outlook and guidance

• FY2026 adjusted forecast: revenue ¥3,510bn, adjusted operating profit ¥425bn and adjusted net profit ¥320bn; forecasts were unchanged.

• Adjusted operating margin is forecast at 12.1%; core free cash flow at ¥300bn.

• Service Solutions forecast revenue is ¥2,470bn and adjusted operating profit ¥430bn; Hardware Solutions revenue forecast is ¥960bn.

• Japan revenue target was ¥1.96tn; H1 revenue plus planned H2 backlog covered 79%, leaving ¥402.7bn to secure and convert; potential orders were ~¥700bn.

• Uvance FY2026 revenue target was ¥840bn; Modernization target was ¥470bn, with AI-driven modernization expansion planned.