NEC (6701) Q1 2027 earnings summary

Executive summary

• Achieved significant revenue and profit growth in both IT Services and Social Infrastructure segments, with strong contributions from Domestic IT and Aerospace/National Security.

• Revenue for the three months ended June 30, 2026 rose 14.5% year-over-year to 819,774 million JPY, with net profit attributable to owners up 157.4% to 49,698 million JPY.

• Newly consolidated CSG Systems International, Inc. from May 2026, boosting international results; acquisition completed for 360,841 million JPY.

• Revised full-year forecasts upward based on robust Q1 performance and major business combination.

Financial highlights

• Q1 revenue rose 14.5% year-over-year to ¥819.8 billion; Non-GAAP operating profit increased by ¥34.7 billion to ¥74.7 billion; Non-GAAP net profit surged by ¥38.6 billion to ¥60.9 billion.

• Operating profit increased 66.1% year-over-year to 58,770 million JPY; profit before income taxes up 76.1% to 56,529 million JPY.

• Basic and diluted EPS rose to 37.47 JPY from 14.49 JPY year-over-year; Non-GAAP EPS up by ¥29 to ¥46.

• Operating profit margin improved to 9.1% from 5.6% year-over-year.

• Pro forma revenue (assuming CSG consolidation from April) up 9.8% year-over-year.

Outlook and guidance

• Full-year revenue forecast revised upward by ¥40.0 billion to ¥3,540.0 billion; Non-GAAP OP forecast raised by ¥10.0 billion to ¥430.0 billion.

• Non-GAAP net profit forecast increased to ¥290.0 billion; dividend per share maintained at ¥40.

• Segment forecasts raised for IT Services and Social Infrastructure, reflecting Q1 momentum.

• FY ending March 31, 2027 revenue forecast at 3,540,000 million JPY, down 1.2% year-over-year; Non-GAAP EPS at 218.65 JPY.