NTT (9432) Q4 2026 (Media) earnings summary

Executive summary

• FY 2025 operating revenue reached a record-high ¥14,409.1 billion, up 5.1% year-on-year, driven by enterprise, Smart Life, digital transformation, AI, and data center expansion, as well as the consolidation of SBI Sumishin Net Bank and NTT DATA Group.

• EBITDA and operating profit increased year-on-year, with operating profit up 3.4% to ¥1,706.2 billion, despite higher costs for DOCOMO customer base, network quality improvements, and increased interest payments.

• Profit growth was offset by impairment losses in the energy segment and higher interest expenses.

• Major strategic initiatives included the launch of new AI and photonics technologies, expansion of financial services, and sustainability efforts.

Financial highlights

• FY 2025 operating revenue: ¥14,409.1 billion, up ¥704.4 billion (5.1%) year-on-year; operating profit: ¥1,706.2 billion, up ¥56.7 billion (3.4%).

• EBITDA: ¥3,423.3 billion, up ¥184 billion year-on-year; net profit increased by ¥37 billion to ¥1,037.0 billion.

• Comprehensive income attributable to shareholders surged 66.1% to ¥1,719.1 billion.

• Cash and cash equivalents at year-end nearly doubled to ¥1,921.9 billion.

• Dividend for FY 2025 set at ¥2.65; FY 2026 forecast at ¥5.4, marking 16 consecutive years of increases.

Outlook and guidance

• FY 2026 expects record-high operating revenue and EBITDA, with profit declining due to higher interest payments; FY2027 revenue forecast is ¥15,060.0 billion (+4.5% year-on-year), operating profit of ¥1,710.0 billion (+0.2%), and profit attributable to shareholders projected to decline 5.5% to ¥980.0 billion.

• Medium-term EBITDA target of ¥4 trillion postponed to FY 2030, focusing on AI and value-added areas.

• Strategic investments of ¥12 trillion planned from FY 2026–2030, with ¥7.5–8 trillion in value-added areas.

• Dividend per share forecast for FY2027 is ¥5.40, up from ¥5.30.