Fujitsu (6702) Q1 2027 earnings summary

Executive summary

• First quarter FY 2026 revenue rose 3.9% year-on-year to JPY 779.3 billion, led by Service Solutions and Hardware Solutions, while Ubiquitous Solutions declined.

• Adjusted operating profit increased 56.4% year-on-year to JPY 54.9 billion, with margin improving to 7.0% due to higher revenue, asset sales, and operational efficiencies.

• Service Solutions revenue grew 6.7% year-on-year to JPY 548.9 billion, driven by Uvance and modernization businesses.

• Adjusted net profit for 1Q FY2026 was JPY 41.8 billion, up 40.7% year-on-year, while profit attributable to owners declined due to prior-year one-time gains.

• Profitability gains were supported by improved gross margin and strategic initiatives in AI and modernization.

Financial highlights

• Consolidated revenue: JPY 779.3 billion (+3.9% YoY); Service Solutions: JPY 548.9 billion (+6.7% YoY); Hardware Solutions: JPY 211.2 billion (+4.5% YoY); Ubiquitous Solutions: JPY 34.4 billion (−28.1% YoY).

• Adjusted operating profit: JPY 54.9 billion (+56.4% YoY); Service Solutions: JPY 62.8 billion (+31% YoY); Hardware Solutions: loss of JPY 3.7 billion.

• Adjusted net profit: JPY 41.8 billion (+40.7% YoY); adjusted EPS: JPY 24.15.

• Gross margin improved by 1.5pp to 37.2% in Service Solutions; overall gross margin was approximately 33.6%.

• Core free cash flow: JPY 217.7 billion; cash and cash equivalents at quarter-end: JPY 597.9 billion.

Outlook and guidance

• Full-year FY 2026 revenue forecast: JPY 3,510 billion (+0.2% YoY).

• Adjusted operating profit forecast: JPY 425 billion (+8.8% YoY); adjusted net profit: JPY 320 billion (+7.3% YoY); basic EPS forecast: JPY 182.43.

• Service Solutions revenue expected to grow 5.2% to JPY 2,470 billion, with operating profit margin rising to 17.4%.

• Forecasts remain unchanged; progress aligns with internal plan.