NEC (6701) Q4 2026 earnings summary

Executive summary

• Annual revenue grew 9% year-over-year to JPY 3,582.7 billion, driven by strong IT and Aerospace & Defense segments.

• Non-GAAP operating profit reached JPY 397.2 billion, up JPY 85.9 billion year-over-year, with profit margin hitting 11%.

• Year-end dividend increased by JPY 6 to JPY 22 per share, with annual dividend now JPY 38.

• A 5-for-1 share split was executed effective April 1, 2025, impacting per-share metrics.

Financial highlights

• Adjusted operating profit rose JPY 99.7 billion year-over-year to JPY 386.8 billion; margin at 10.8%.

• Free cash flow increased by JPY 258.9 billion year-over-year to JPY 472.1 billion.

• Operating cash flow up JPY 94.1 billion to JPY 438.5 billion, driven by profit growth and asset returns.

• EBITDA increased by JPY 88.7 billion to JPY 530.2 billion.

• Equity attributable to owners rose to JPY 2,196.6 billion, representing 49.2% of total assets.

Outlook and guidance

• FY March 2027 revenue forecast at JPY 3,500 billion, down 2.3% year-over-year; non-GAAP operating profit expected to rise to JPY 420 billion.

• Non-GAAP earnings per share forecast is JPY 214.88.

• Dividend per share projected to increase to JPY 40.

• Profitability improvements anticipated in IT Services and Social Infrastructure, especially through BluStellar and defense expansion.

• Allowances for macroeconomic and component risks: JPY 100 billion for revenue, JPY 30 billion for profit.