NEC (6701) Q1 2027 earnings summary

Executive summary

• Q1 FY 2027 delivered strong revenue and profit growth, led by IT Services and Social Infrastructure, with significant contributions from Domestic IT and Aerospace & National Security.

• Acquisition of CSG Systems International, Inc. in May 2026 boosted international results and added 32,761 million JPY in revenue post-acquisition.

• Segmentations were updated, with prior year numbers restated for comparability.

• Full-year forecasts were revised upward based on robust Q1 performance and strategic initiatives.

Financial highlights

• Q1 revenue rose 14.5% year-on-year to 819.8 billion JPY; non-GAAP operating profit surged 86.9% to 74.7 billion JPY.

• Non-GAAP net profit attributable to owners increased 173.2% to 60.9 billion JPY; EPS up to 46 JPY.

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

• BluStellar revenue up 33% and profit up 7.6 billion JPY year-on-year.

• Social Infrastructure revenue up 50% year-on-year, profit at 16.1 billion JPY.

Outlook and guidance

• Full-year revenue forecast revised up by 40 billion JPY to 3,540 billion JPY; non-GAAP operating profit up by 10 billion JPY to 430 billion JPY.

• Non-GAAP net profit forecast increased to 290 billion JPY; dividend per share set at 40 JPY.

• IT Services revenue forecast up by 20 billion JPY to 2,175 billion JPY; non-GAAP operating profit up by 5 billion JPY to 329 billion JPY.

• Social Infrastructure profit forecast up by 45.6 billion JPY to 9.9 billion JPY for the full year.

• CSG consolidation impact not yet fully included in the forecast; to be updated at first half results.