KDDI (9433) Q1 2026 earnings summary

Executive summary

• Operating revenue rose 3.4% year-over-year to ¥1,436.3 billion, while profit attributable to owners declined 3.3% to ¥171.1 billion, in line with forecasts, driven by growth in energy, finance, and mobile communication revenues.

• New mobile plans and connected experience offerings saw strong uptake, improving brand migration and churn rates for au and UQ Mobile.

• Financial and business services segments progressed, with focus on telecom x finance, cybersecurity, IoT, and digital transformation initiatives.

• Strategic initiatives include digital data x AI, next-generation networks, and the nationwide rollout of the Takanawa model.

• New headquarters opened in July 2025, supporting innovation and collaboration.

Financial highlights

• Operating revenue rose to ¥1,436.3 billion, up 3.4% year-over-year; operating income declined 1.6% to ¥272.5 billion.

• Profit attributable to owners fell 3.3% to ¥171.1 billion.

• Business services segment revenue up 4.5% year-over-year to ¥349.7 billion; operating income up 5.4% to ¥57.5 billion.

• Financial business operating income increased 33% year-over-year to ¥11.7 billion.

• 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 and profit attributable to owners of ¥748,000 million.

• Full-year profit growth of over ¥30 billion targeted in the personal services segment.

• Significant growth expected in the second half, driven 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.