NTT DATA Group (9613) Q2 2026 earnings summary

Executive summary

• Q2 saw JPY 3 billion in unprofitable projects within Public & Social Infrastructure, but risk visibility improved and no further losses are expected in H2.

• Net sales and operating profit rose year-over-year for the first half, with significant increases in new orders both domestically and internationally, driven by large-scale contracts.

• Operating profit margin improved to 11.4% from 6.7% year-over-year, and profit surged 189.6% to ¥155.6 billion.

• The gain on the transfer of data centers in the Overseas Segment was a major contributor to profit growth.

• North America secured large-scale cloud and security projects, with net sales expected to exceed last fiscal year from Q3 onward.

Financial highlights

• Net sales: ¥2,360.5 billion, up 5.4% year-over-year; operating profit: ¥269.0 billion, up 80.5%.

• Public & Social Infrastructure net sales increased by JPY 22.6 billion, but operating profit declined due to unprofitable projects and higher SG&A.

• Gross profit in Public & Social Infrastructure declined by JPY 6 billion, with an additional JPY 4 billion increase in SG&A, totaling a JPY 10 billion profit decline.

• New orders received: ¥2,749.7 billion, up 10.0% year-over-year.

• Gain on transfer of data centers: $880 million (¥129.5 billion) recorded in Q2.

Outlook and guidance

• No further losses are expected in Public & Social Infrastructure for H2; demand remains strong and cost controls are being prioritized.

• North American net sales and gross profit are projected to rise in H2 as new large-scale orders are recognized.

• Full-year forecasts: net sales ¥4,936.7 billion, operating profit ¥522.0 billion, profit ¥266.0 billion.

• Progress toward full-year forecasts: net sales 47.8%, operating profit 51.5%, profit 58.5%.

• Enterprise and manufacturing demand is expected to remain robust into the second half.