NTT DATA Group (9613) Q2 2026 earnings summary

Executive summary

• Management addressed unprofitable projects in the domestic Public & Social Infrastructure segment, recording a JPY 3 billion loss in Q2 but expects no further losses in the second half and anticipates continued strong demand.

• Net sales and operating profit rose year-over-year for the first half (April–September), 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.

• North America saw large-scale project wins, particularly in cloud and security, with net sales from these orders expected to be recognized from the second half, driving a turnaround and profit accumulation.

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

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 segment posted a JPY 3 billion loss from unprofitable projects in Q2, but overall net sales in this segment increased by JPY 22.6 billion year-over-year.

• Operating profit declined by JPY 10 billion, attributed to JPY 3 billion in unprofitable projects, JPY 3 billion lower gross profit due to the absence of last year's large profitable project, and a JPY 4 billion increase in SG&A expenses.

• 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 the remainder of the fiscal year, with management aiming to control SG&A and achieve full-year targets.

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

• North American net sales are projected to exceed last fiscal year from Q3 onward, driven by new large-scale orders.

• Enterprise segment growth is expected to continue into the second half, supported by strong demand.

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