KDDI (9433) Q2 2026 (Q&A) earnings summary

Executive summary

• Revenue and profit increased year-over-year and quarter-over-quarter in H1 FY26-03, driven by mobile business reforms, ARPU growth, and lower churn, with progress in AI and data center initiatives supporting future growth.

• Management is confident in meeting full-year EPS and profit targets, with consolidated results and mobile progress in line with initial forecasts.

• The "Satellite Growth Strategy" is advancing, focusing on generative AI, 5G, DX, finance, energy, and expansion into new fields such as mobility, space, healthcare, Web3/metaverse, and sports/entertainment.

• Headquarters relocated to Takanawa Gateway City in July 2025 to foster innovation and collaboration.

Financial highlights

• Operating revenue reached ¥2,963.2 billion, up 3.8% year-over-year, with Q2 sequential growth of 6.3%.

• Operating income was ¥577.2 billion, up 0.7% year-over-year, and net profit attributable to owners was ¥377.7 billion, up 7.6%.

• Interim dividend set at ¥40 per share, half of the planned ¥80 full-year dividend.

• Basic EPS rose to ¥96.95 after a two-for-one stock split.

• Free cash flow increased significantly year-over-year, reaching ¥417.9 billion in H1 FY26-03.

Outlook and guidance

• Full-year forecast for FY2026: operating revenue ¥6,330,000 million (+7.0%), operating income ¥1,178,000 million (+5.3%), profit attributable to owners ¥748,000 million (+9.1%), and basic EPS ¥194.38.

• Mobile and focus areas (DX, Finance, Energy, Lawson) expected to drive H2 growth, with mobile segment targeting over ¥30 billion in full-year gains.

• No changes to previously announced forecasts; management remains confident in achieving EPS and profit targets.