6702.T

• Sympathy and Disaster Response

  • Management expressed condolences to those affected by the July 28, 2026 Kumamoto earthquake, and committed Fujitsu Group support for early recovery of affected areas.

  • Strategic Management Restructuring

  • From FY2026, shifted Service Solutions sub-segment management from a region-centered structure to an industry-centered global structure, positioning industry domain expertise as a core competitive advantage. Service Solutions is now split into the Enterprise (manufacturing, automotive, distribution/retail) and Public (government, defense, finance, healthcare) sub-segments.

  • Growth Pillar Performance

  • Uvance, the company's core growth driver, delivered strong order and revenue growth of 51% and 31% year-on-year respectively, with its revenue share in Service Solutions rising 6 percentage points to 35% and full-year growth already on track to exceed the 18% annual target. Modernization, the second growth pillar, delivered 23% order growth and 29% revenue growth year-on-year, remaining on track to hit its 20% annual revenue growth target of 47 billion yen.

  • Profitability Improvement Initiatives

  • Steady profitability improvement progress delivered a 1.5 percentage point gross margin increase and 7.8 billion yen incremental operating profit for Service Solutions. Three core initiatives drive this progress: the ONE Delivery operational model, AI-driven delivery, and value-based pricing. AI-driven delivery is prioritized as the highest-impact initiative, with expansion of AI adoption across departments and the launch of the AI Top Gun project, which concentrates advanced AI talent on high-potential large-scale projects to maximize productivity gains from Agentic AI.

  • R&D Progress

  • Development of Physical AI, next-generation CPUs, and quantum computing is progressing according to plan.

  • Operational Updates for Hardware Solutions

  • Updated contract terms have been implemented to enable prompt pass-through of component price increases for all new orders; remaining negative impact from unadjusted legacy orders was limited to Q1, with improvements expected from Q2 onward.

• Full-year FY2026 guidance for all financial metrics is maintained unchanged from prior announcements, as Q1 results and operational progress are fully aligned with internal plans.
• The maintained full-year projections are: 3,510 billion yen in total consolidated revenue, 425 billion yen in adjusted operating profit, and 320 billion yen in adjusted net profit, representing a planned 34.4 billion yen increase in adjusted operating profit and 21.7 billion yen increase in adjusted net profit year-on-year.
• Management reaffirmed the target of achieving another year of record-high profit for FY2026.
• Fujitsu IR Day 2026 will be held on September 16, 2026, to detail the company's long-term growth strategy aligned with its recently announced Management Vision 2035.

1. Service Solutions (overall): Revenue of 548.9 billion yen, up 6.7% year-on-year. Revenue contribution to consolidated total: 70.4%. Adjusted operating profit of 62.8 billion yen, up 31% year-on-year, with an adjusted operating margin of 11.4% (up 2.1 percentage points). Within Service Solutions: Enterprise sub-segment: Revenue of 213.0 billion yen, up 7.8% year-on-year; adjusted operating profit of 19.3 billion yen, up 12% year-on-year. Public sub-segment: Revenue of 335.9 billion yen, up 6% year-on-year; adjusted operating profit of 43.4 billion yen, up 42% year-on-year. Uvance: Q1 orders of 19.33 billion yen, up 51% year-on-year; revenue of 192.2 billion yen, up 31% year-on-year, accounting for 35% of total Service Solutions revenue (up from 29% prior year). Modernization: Q1 orders up 23% year-on-year; revenue of 94.9 billion yen, up 29% year-on-year. 2. Hardware Solutions: Revenue of 211.2 billion yen, up 4.5% year-on-year. Revenue contribution to consolidated total: 27.1%. Reported an adjusted operating loss of 0.37 billion yen, a 0.5 billion yen deterioration in profit from the prior year, driven by unfavorable domestic revenue composition changes and delayed cost pass-through for component price increases. 3. Ubiquitous Solutions: Revenue declined 28.1% year-on-year. Adjusted operating profit of 0.44 billion yen, a 0.37 billion yen year-on-year profit decrease, caused by post-Windows 10 end-of-support demand pullback and the absence of a large prior-year financial institution deal. 4. Intersegment elimination and corporate: Recorded an operating loss of 8.6 billion yen, a 13.6 billion yen year-on-year reduction in expenses, driven by a gain on the partial land sale for the Fujitsu Technology Park Kawasaki redevelopment project. Consolidated total: Revenue of 779.3 billion yen, up 3.9% year-on-year. Adjusted operating profit of 54.9 billion yen, up 56% year-on-year, with an adjusted operating margin of 7.0% (up 2.3 percentage points).

• Uncertainty surrounding the broader global and domestic business environment remains unchanged, and management will continue to closely monitor evolving conditions.
• Hardware Solutions faced temporary Q1 headwinds from legacy orders that did not include cost pass-through clauses for memory chip and component price increases, which negatively impacted domestic profitability.

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