NEC (6701) Q3 2026 earnings summary

Executive summary

• Nine-month revenue increased 4.3% year-on-year to ¥2,422.3 billion, led by strong Domestic IT, Aerospace/Defense, and National Security segments.

• Adjusted operating profit rose by ¥55.8 billion to ¥206.0 billion, and non-GAAP operating profit increased by ¥47.5 billion to ¥209.9 billion year-over-year.

• Net profit attributable to owners of the parent nearly doubled year-over-year to ¥142,278 million, with total comprehensive income up 123.4% to ¥248,497 million.

• Despite ¥18.0 billion in Q3 restructuring expenses, results exceeded expectations and full-year outlook was revised upward.

Financial highlights

• Non-GAAP net profit for nine months was ¥143.0 billion, up ¥34.6 billion year-over-year.

• EBITDA for the period reached ¥304.7 billion, a ¥50.2 billion increase year-over-year.

• Basic and diluted EPS more than doubled to ¥106.74, reflecting a share split effective April 1, 2025.

• Free cash flow for Q3 was ¥201.8 billion, a significant improvement from the previous year.

• Gross profit increased to ¥761,890 million from ¥701,883 million year-over-year.

Outlook and guidance

• Full-year revenue forecast raised to ¥3,560.0 billion, with adjusted operating profit forecast at ¥340.0 billion and non-GAAP operating profit at ¥360.0 billion.

• Non-GAAP net profit forecast raised to ¥260.0 billion, and EBITDA to ¥485.0 billion.

• Non-GAAP EPS forecasted at ¥195.03.

• Dividend per share maintained at 32 yen; post-share split, annual dividend forecasted at ¥140.00 per share.

• IT Services segment revenue forecast at ¥2,470.0 billion, with adjusted operating profit at ¥331.0 billion.