NTT DATA Group (9613) Q4 2025 earnings summary

Executive summary

• Net sales and profits increased year-over-year, exceeding forecasts, driven by strong performance in Japan and Data Center businesses.

• Management targets for FY2026 include consolidated net sales of 4.7 trillion yen and an operating profit margin of 10%.

• Advanced digital transformation, expanded consulting and digital projects, and invested in generative AI and data centers.

Financial highlights

• Net sales rose to 4,638.7 billion yen (+6.2% YoY), operating profit reached 323.9 billion yen (+4.6% YoY), and profit attributable to shareholders was 142.5 billion yen (+6.4% YoY).

• Operating profit margin was 7.0% (down 0.1pt YoY); ROE was 8.0%, ROA 3.3%.

• Annual dividend per share increased to 25 yen (+8.7% YoY), payout ratio 24.1–24.6%.

• Free cash flow was negative 272.6 billion yen due to higher investments and receivables.

• Data Center business net sales grew by 30% YoY to 371.2 billion yen.

Outlook and guidance

• FY2026 net sales forecast at 4,936.7 billion yen (+6.4% YoY), operating profit at 522.0 billion yen (+61.2% YoY), and profit attributable to shareholders at 200.0 billion yen (+40.4% YoY).

• Operating profit margin expected to rise to 10.6%, with adjusted margin at 11.0%.

• Overseas EBITA margin forecast to improve to 12.9% from 7.5%.

• Capital investment for FY2026 is expected to reach 801.0 billion yen.

• Forecasts assume transfer of data center assets to a REIT and continued business expansion.