KDDI (9433) Q2 2026 earnings summary

Executive summary

• Consolidated financial results for the first half showed increased revenue and profit, with operating revenue up 3.8% year-over-year to ¥2,963.2 billion and profit attributable to owners up 7.6% to ¥377.7 billion, driven by growth in finance, mobile, IoT, and data center businesses.

• Mobile business structural reforms, value creation initiatives, and service innovations such as au Starlink Direct and 5G Fast Lane are driving ARPU growth and reducing churn, supporting next-generation growth.

• Interim dividend of ¥40 per share declared, with consolidated results and mobile progress in line with initial forecasts.

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

Financial highlights

• Operating revenue reached ¥2,963.2 billion, up 3.8% year-on-year, with operating income at ¥577.2 billion, up 0.7%, and profit attributable to owners at ¥377.7 billion, up 7.6%.

• Quarterly operating revenue and profit increased 6.3% and 11.8% quarter-on-quarter, respectively.

• Gross profit for the period was ¥1,284,163 million, up 1.6% year-on-year.

• Basic earnings per share increased to ¥96.95 from ¥85.60, reflecting a two-for-one stock split.

• Free cash flow increased by ¥417.9 billion year-on-year, driven by EBITDA and lower CAPEX.

Outlook and guidance

• Full-year profit is expected to increase by more than ¥30 billion, with 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.

• Dividend payout of ¥40 per share (50% of ¥80 annual target) is planned.

• No changes have been made to previously announced forecasts.

• Further improvements in churn rate and ARPU growth are expected in the second half, with mobile and focus areas driving H2 growth.

• Finance segment shifting to emphasize loan-to-deposit ratio; DX (Business Services) expected to accelerate growth in H2.