KDDI (9433) Q2 2027 earnings summary

Executive summary

• H1 revenue was ¥3,052.8bn, up 4.7% YoY, and adjusted operating income rose 13.9% to ¥633.1bn; performance was ahead of full-year progress benchmarks.

• Telecom Core and Business Growth led adjusted profit growth, while AI services and data centers supported expansion plans.

Financial highlights

• Adjusted profit attributable to owners of the parent was ¥390.0bn, up 13.6% YoY; progress toward the full-year target was 53.4%.

• IFRS operating income was ¥559.3bn, up ¥4.3bn YoY; IFRS profit attributable to owners of the parent was ¥363.3bn, up ¥3.4bn.

• H1 gross profit was ¥1,332.0bn and profit before tax was ¥593.3bn; basic EPS was ¥96.83 and adjusted basic EPS was ¥103.97.

Outlook and guidance

• FY ending March 2027 guidance was unchanged: revenue ¥6,410.0bn, adjusted operating income ¥1,210.0bn and adjusted parent profit ¥731.0bn.

• Management expects to achieve the FY operating income target; Rakuten roaming revenue is expected from H2. H2 priorities include funding medium-term organic growth of 5%+ alpha and investment in growth and security.

• Financial-business profit is expected to decline through Q3 as the loan-to-deposit balance normalizes, then recover in Q4; Energy profit is expected to recover in Q3 as timing differences unwind.