Fujitsu (6702) Q3 2025 earnings summary

Executive summary

• Consolidated revenue for the first nine months of FY2024 was JPY 2,621.4 billion, down 0.8% year-on-year, mainly due to declines in Hardware and Ubiquitous Solutions.

• Adjusted operating profit rose 32.6% year-on-year to JPY 157.6 billion, with margin improvement to 6.0% and record profitability driven by Service Solutions.

• Service Solutions segment led growth, especially in Japan, supported by strong digital transformation demand and modernization services.

• Portfolio transformation advanced with carve-outs and planned sales of SHINKO Electric, Fujitsu Optical Components, and Fujitsu General; Device Solutions to be reclassified as discontinued operations.

• Basic EPS for the nine months was JPY 48.15, up from JPY 13.42 in the prior year period; adjusted EPS was JPY 58.52.

Financial highlights

• Service Solutions revenue was JPY 1,563.1 billion, up 2.7% year-on-year; adjusted operating profit was JPY 161.5 billion, up JPY 45.2 billion.

• Gross margin improved by 2.6 percentage points to 35.9% year-on-year in Service Solutions.

• Core free cash flow for the nine months was JPY 42.4 billion; free cash flow including one-time items was -JPY 23.1 billion due to prior year asset sales.

• Buybacks totaled JPY 111.7 billion through Q3, representing 62% progress toward the JPY 180 billion target.

• Total assets at 3Q FY2024 were JPY 3,462.0 billion, with total equity at JPY 1,851.1 billion.

Outlook and guidance

• FY2024 revenue forecast is JPY 3,470.0 billion, with adjusted operating profit expected at JPY 290.0 billion (8.4% margin), up 9.3% year-on-year.

• Service Solutions revenue forecasted to rise 4.3% to JPY 2,230.0 billion, with adjusted operating profit up 18.0% to JPY 280.0 billion.

• Uvance revenue target for FY2024 is JPY 450 billion (+22% YoY), aiming for JPY 700 billion in FY2025.

• Core free cash flow for FY2024 is projected at JPY 220.0 billion.

• Basic EPS forecast is JPY 115.35; adjusted EPS forecast is JPY 123.58.