NTT (9432) Q2 2026 (Media) earnings summary

Executive summary

• Consolidated net sales increased by JPY 120.4 billion year-over-year, with operating profit up JPY 120 billion and profit up JPY 101.8 billion, driven by strong orders and the use of REITs in the data center business.

• Operating revenues for the six months ended September 30, 2025, rose 2.8% year-over-year to ¥6,772,713 million, with operating profit up 2.7% to ¥945,029 million and profit attributable to NTT up 7.4% to ¥595,651 million.

• Comprehensive income attributable to NTT more than doubled year-over-year, reaching ¥833,557 million, a 104.6% increase.

• Orders received rose JPY 249.2 billion year-over-year, with robust performance in both Japan and overseas, especially in financial and large enterprise deals.

• The transfer of fixed assets to NTT DC REIT in July contributed significantly to net sales and operating profit, with the business on track for sustainable growth.

Financial highlights

• Net sales: +JPY 120.4 billion year-over-year.

• Operating profit: +JPY 120 billion year-over-year.

• Profit: +JPY 101.8 billion year-over-year.

• Orders received: +JPY 249.2 billion year-over-year.

• Data center business net sales and operating profit each at $880 million in Q2.

• Total assets increased to ¥33,452,790 million as of September 30, 2025, up from ¥30,062,483 million at March 31, 2025.

• Total equity decreased to ¥9,540,168 million from ¥11,344,639 million, with shareholders' equity per share at ¥111.57.

• Net cash provided by operating activities was ¥977,750 million, down from ¥1,121,366 million year-over-year.

• Net cash provided by financing activities surged to ¥2,566,945 million, mainly due to increased borrowings.

Outlook and guidance

• The company aims to achieve full-year targets in Japan despite some segments lagging, focusing on cost control and order growth.

• Overseas, all regional units face challenges but are expected to recover through new orders and cost management.

• Investment in data centers will continue at current levels, with cash recycling via REITs and potential joint ventures for future growth.

• Full-year forecast for fiscal year ending March 31, 2026: operating revenues of ¥14,190,000 million (+3.5%), operating profit of ¥1,770,000 million (+7.3%), and profit attributable to NTT of ¥1,040,000 million (+4.0%).

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