KDDI (9433) Q4 2026 earnings summary

Executive summary

• Achieved strong revenue and profit growth for the year ending March 2026, surpassing mid-term EPS targets through robust business performance and strategic initiatives, despite external challenges.

• Operating revenue reached JPY 6,071.9 billion, up 4.1% year-on-year, with operating income at JPY 1,164.3 billion, up 6% year-on-year (excluding one-time impairment costs).

• Net income attributable to owners was JPY 756.7 billion, a 13.6% increase year-on-year, exceeding the EPS target set at 1.5x March 2019 levels, with EPS for FY26-03 at 196.46 yen.

• Mobile, finance, energy, and DX segments all contributed to income growth, with mobile revenue and ARPU rising significantly.

• Launched new three-year medium-term management strategy, "Power-to-Connect 2028," focusing on AI-native society and value creation through fusion of technology, infrastructure, and human resources.

Financial highlights

• Operating revenue: JPY 6,071.9 billion (+4.1% YoY).

• Operating income: JPY 1,164.3 billion (+6% YoY, adjusted for one-time items); profit for the year: JPY 756.7 billion (+13.6% YoY, excluding one-time impacts).

• EPS for FY26-03 was 196.46 yen, achieving the mid-term target.

• Mobile revenue in personal services up JPY 32.6 billion YoY; ARPU up JPY 100 YoY; smartphone subscriptions up 360,000 YoY.

• Financial and DX businesses achieved double-digit CAGR growth (30.4% and 11.3% respectively) over the prior medium-term period.

Outlook and guidance

• New mid-term strategy targets 5% CAGR in consolidated operating profit, with double-digit CAGR in personal and business growth segments.

• FY March 2027 forecast: revenue JPY 6.41 trillion (+5.6% YoY), adjusted operating income JPY 1.21 trillion (+5% YoY), adjusted net income JPY 731 billion (+2.7% YoY).

• Dividend per share for March 2027 set at JPY 84 (+5% YoY); share buybacks up to JPY 300 billion planned.

• Planned investment of JPY 1.2 trillion in infrastructure and JPY 1 trillion in growth sectors over the next three years.

• Ongoing investment in 5G rollout and digital transformation to drive future growth.