NTT DATA Group (9613) Q3 2026 earnings summary

Executive summary

• Q3 and the nine months ended December 31, 2025, saw strong fee income in the data center segment, including one-off positive factors and gains on data center transfers, with overseas operations facing stretch targets and some downside risk, while domestic public sector performance was negative year-over-year.

• Overseas business showed improvement in profit margins, aided by structural reforms and one-off factors, with North America and the UK seeing positive order trends.

• Net sales and operating profit rose year-over-year, driven by large-scale project acquisitions in Japan and overseas.

• New orders received increased 9.2% year-over-year, reflecting strong demand across segments.

• Profit including non-controlling interests surged 140% year-over-year to ¥216.9 billion.

Financial highlights

• Q3 included approximately JPY 5 billion in one-off data center fee income, with a nine-month total of about JPY 10 billion; an additional JPY 3 billion government subsidy was received in North America.

• Net sales for the nine months reached ¥3,643.8 billion, up 6.9% year-over-year, and operating profit rose 62.8% to ¥384.2 billion, with margin improving to 10.5%.

• Profit before tax increased to ¥323.8 billion, up ¥146.9 billion year-over-year.

• Full-year net sales forecast revised to ¥4,910.7 billion, reflecting a lower-than-expected gain on DC transfer.

• Capital investment for the period was ¥435.4 billion.

Outlook and guidance

• Q4 is expected to have limited headroom for outperformance, especially overseas, but efforts are focused on achieving full-year targets.

• Full-year operating profit forecast revised to ¥496.0 billion, reflecting a ¥26.0 billion shortfall in DC transfer gain.

• Data center investment from FY2023 to FY2027 is projected to exceed JPY 1.5 trillion, with continued strong demand from hyperscalers.

• Net sales for FY2025 expected to grow by ¥272.0 billion year-over-year.

• No fixed plan for data center asset sales in FY2026; future deals will depend on market trends and liquidity needs.