NTT (9432) Q1 2026 earnings summary

Executive summary

• Operating revenue for Q1 FY2025 reached a record ¥3,262.0 billion, up 0.7% year-over-year, driven by enterprise business expansion despite a ¥50 billion FX headwind.

• Operating profit declined 7.0% year-over-year to ¥405.2 billion, and net profit fell 5.3% to ¥259.7 billion, mainly due to lower mobile service revenues and increased costs for customer base and network quality initiatives.

• Comprehensive income attributable to shareholders decreased 12.4% year-over-year to ¥308,159 million.

• Performance is progressing as planned, with cost reductions and enterprise business growth supporting results.

• 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

• EBITDA for Q1 was ¥801.4 billion, down 1.7% year-over-year.

• FX impact reduced revenue by approximately ¥50 billion year-over-year.

• Basic earnings per share for the quarter were ¥3.14, down from ¥3.26 in the prior year.

• Total assets increased to ¥30,999.8 billion as of June 30, 2025, up from ¥30,062.5 billion at March 31, 2025.

• Shareholders’ equity per share decreased to ¥113.67 from ¥123.54 sequentially.

Outlook and guidance

• Management remains committed to achieving the annual consolidated plan, focusing on cost reduction, customer base strengthening, and growth in Smart Life and enterprise businesses.

• Fiscal year ending March 31, 2026, forecasts operating revenues of ¥14,190,000 million (+3.5% YoY), operating profit of ¥1,770,000 million (+7.3%), and profit attributable to shareholders of ¥1,040,000 million (+4.0%).

• Dividend forecast for the year ending March 31, 2026, is ¥5.30 per share.

• Data center investment cycle expected to accelerate, with bullish outlook on capturing strong AI and cloud demand.