KDDI (9433) Q1 2026 earnings summary

Executive summary

• Q1 consolidated revenue rose 3.4% year-on-year to ¥1,436.3 billion, while operating income fell 1.6% and net profit declined 3.3%, in line with initial forecasts.

• Growth was driven by energy, finance, and mobile communication revenues, with strong uptake of new mobile plans and connected experience offerings.

• Multi-brand strategy redesign and service revisions improved brand migration and churn rates.

• The company is advancing its Satellite Growth Strategy, focusing on generative AI, 5G, DX, finance, and energy, and has opened new headquarters to support innovation.

• Financial and business services segments showed growth, with a focus on telecom x finance, cybersecurity, and IoT.

Financial highlights

• Operating revenue: ¥1,436.3 billion (+3.4% YoY); operating income: ¥272.5 billion (-1.6% YoY); net profit: ¥171.1 billion (-3.3% YoY).

• Mobile revenues reached ¥550.6 billion (+¥7.6 billion YoY); mobile ARPU increased by ¥60 to ¥4,340; smartphone subscriptions grew by 450,000.

• Business services segment revenue was ¥349.7 billion (+4.5% YoY), operating income ¥57.5 billion (+5.4% YoY).

• au Financial Holdings operating income surged 33% YoY to ¥11.7 billion; mortgage balance up 35.5%.

• Free cash flow for the quarter was ¥89,512 million, with a significant year-over-year decrease in operating cash flow.

Outlook and guidance

• Full-year revenue forecast set at ¥6,330.0 billion, with operating income target of ¥1,178.0 billion.

• Profit growth of over ¥30 billion targeted in the mobile segment (Personal Services basis).

• Significant growth expected in the second half, supported by new service plans, financial, and energy businesses.

• No changes to previously announced forecasts.

• Business services segment aims to accelerate growth, focusing on cybersecurity and IoT.