Fujitsu (6702) Q4 2026 earnings summary

Executive summary

• Fiscal 2025 revenue was JPY 3,502.9 billion, down 1.3% year-over-year, but up 0.9% excluding restructuring impacts; record-high adjusted operating profit and net profit were driven by Service Solutions, especially Uvance and modernization.

• Adjusted operating profit reached JPY 390.5 billion, up 27% year-over-year, with margin improving by 2.5 percentage points to 15.4%.

• Net profit before adjustment was JPY 449.4 billion, up JPY 229.6 billion, aided by gains from asset sales and business divestitures.

• Significant cash generation from core operations and asset sales supported increased shareholder returns and growth investments.

• Comprehensive income for the year rose 110.9% to JPY 516.5 billion.

Financial highlights

• Adjusted operating profit for Service Solutions was JPY 361.4 billion, up 25% year-over-year.

• Core cash flow rose 24% to JPY 289.9 billion; free cash flow reached JPY 482.6 billion.

• Gross margin improved by 2 percentage points, supported by standardization, automation, and AI adoption.

• Return on equity improved to 15.8%; EPS growth averaged 14%.

• Basic earnings per share jumped to JPY 254.83 from JPY 120.93 year-over-year.

Outlook and guidance

• Fiscal 2026 revenue is forecast at JPY 3,510 billion (+0.2%), with adjusted operating profit expected to rise to JPY 425 billion (+8.8%).

• Service Solutions expected to drive growth, with double-digit revenue increase in Japan (+11%) and OP margin rising to 17.4%.

• Profit for the year attributable to owners of the parent is projected to decrease 31% to JPY 310 billion.

• Dividend per share forecast for FY2026 is JPY 55, up from JPY 50 in FY2025; share buybacks planned at JPY 150 billion.

• Hardware and Ubiquitous Solutions forecasted to decline.