NTT (9432) Q1 2026 earnings summary

Executive summary

• Q1 operating revenues reached a record high of ¥3,262.0 billion, up 0.7% year-on-year, driven by enterprise business expansion despite a negative foreign exchange impact of about JPY 50 billion.

• Operating profit declined 7.0% year-on-year to ¥405.2 billion, and net profit attributable to shareholders fell 5.3% to ¥259.7 billion due to increased costs for customer base strengthening and network quality improvements.

• EBITDA decreased by 1.7% year-on-year to ¥801.4 billion.

• Comprehensive income attributable to shareholders decreased 12.4% year-on-year to ¥308.2 billion.

• Key strategic initiatives included the launch of an upgraded Japanese LLM, listing of NTT DC REIT in Singapore, and progress in IOWN technology deployment.

Financial highlights

• Operating revenues increased by ¥22.0 billion (+0.7%) year-on-year to ¥3,262.0 billion.

• EBITDA declined by ¥13.9 billion (-1.7%) year-on-year to ¥801.4 billion.

• Operating profit decreased by ¥30.6 billion (-7.0%) year-on-year to ¥405.2 billion.

• Net profit attributable to shareholders fell by ¥14.4 billion (-5.3%) year-on-year to ¥259.7 billion.

• Total assets increased to ¥30,999.8 billion as of June 30, 2025, up ¥937.3 billion from March 31, 2025.

Outlook and guidance

• Focus remains on cost reduction, strengthening customer base, and expanding Smart Life and enterprise businesses to achieve annual targets.

• Plans to transition fixed-line telephone services from copper to fiber and wireless by 2035, with detailed policies to be announced in late September.

• Aims to commercialize IOWN 2.0 with double the communication capacity in FY2026.

• Fiscal year ending March 31, 2026 guidance: operating revenues ¥14,190.0 billion (+3.5%), operating profit ¥1,770.0 billion (+7.3%), profit attributable to shareholders ¥1,040.0 billion (+4.0%), and basic EPS ¥12.60.

• Dividend forecast for FY2026 is ¥5.30 per share, up from ¥5.20 in FY2025.