Fujitsu (6702) Q3 2025 earnings summary

Executive summary

• Revenue for the first nine months of FY2024 was JPY 2,621.4 billion, down 0.8% year-over-year, while adjusted operating profit rose 32.6% to JPY 157.6 billion, driven by Service Solutions growth and improved margins.

• Service Solutions segment led growth, especially in Japan (+6% YoY), supported by digital transformation demand, while international revenue declined 5% due to business carve-outs.

• Profitability improved due to higher revenue, productivity initiatives, and the carve-out of low-profit businesses.

• Basic EPS for the nine months was JPY 48.15, up from JPY 13.42 in the prior year period; adjusted EPS was JPY 58.52.

• Comprehensive income for the period rose 58.4% to JPY 117,559 million.

Financial highlights

• Service Solutions revenue: JPY 1,563.1 billion, up 2.7% YoY; adjusted operating profit: JPY 161.5 billion, up JPY 45.2 billion.

• Gross margin improved by 2.6 percentage points year-on-year to 35.9% in Service Solutions.

• Core free cash flow was JPY 42.4 billion, up JPY 32.6 billion year-on-year; free cash flow including one-time items was -JPY 23.1 billion due to prior year asset sales.

• Buybacks totaled JPY 111.7 billion through Q3, progressing toward the annual target of JPY 180 billion.

• Total assets at 3Q FY2024 were JPY 3,462.0 billion, with total equity at JPY 1,851.1 billion.

Outlook and guidance

• FY2024 revenue forecast is JPY 3,470.0 billion, with adjusted operating profit expected at JPY 290.0 billion (up 9.3% YoY); basic EPS forecast is JPY 115.35, adjusted EPS JPY 123.58.

• Service Solutions revenue forecasted to rise 4.3% to JPY 2,230.0 billion, with adjusted operating profit up 18.0% to JPY 280.0 billion.

• Uvance revenue target for FY2024 is JPY 450 billion (+22% YoY), aiming for JPY 700 billion in FY2025.

• Core free cash flow for FY2024 is projected at JPY 220.0 billion.

• Device Solutions to be reclassified as discontinued operations from Q4 FY2024.