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Earnings presentation6702Fujitsu LimitedElectrical Equipment and Precision Instruments

Overview of Financial Results for Fiscal 2025

In FY2025, consolidated revenue declined slightly, while adjusted operating profit increased substantially due to the revenue growth effect and improved profitability, reaching a record high. Service Solutions grew, and the company plans to set new record highs for both operating profit and profit for the year in FY2026.

Worth reading
84Important
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Direction
Mixed performance
Direction inferred from the company’s description.
Scale
833
¥100 million (year-on-year increase in adjusted operating profit)
Wording
Definitive
How definitive the wording is.

Contents of this document

Earnings presentationFY202512 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥35,029 100 million-1.3%
Operating profit¥3,483 100 million +31.4%before adjustment
Net income¥4,494 100 million +104.5%profit for the year, before adjustment
Gross Profit Margin
Rate38.7% (Service Solutions)
Year-on-year change (points)2
Operating profit margin
Rate11.2% (adjusted consolidated operating margin)
Year-on-year change (points)2.5
Full-year earnings forecast
Revenue
¥35,100 100 million
Adjusted operating profit
¥4,250 100 million
Adjusted net income
¥3,200 100 million
Operating profit
¥4,150 100 million before adjustment
Profit for the period
¥3,100 100 million before adjustment
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Uvance and Modernization exceeded their targets
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Impact of higher revenue+¥41.0 billion (Service Solutions)
  • Profitability Improvement+¥43.7 billion (Service Solutions)
  • Increased investment and other factors(¥13.2 billion) (Service Solutions)
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
USD/JPY¥150
EUR/JPY¥170 per euro
GBP/JPY¥195 per pound
New initiatives
  • Change the Service Solutions subsegments to industry-based management
  • Provide a generative AI environment to 36 countries overseas
  • Growth investments in AI platforms, physical AI, next-generation CPUs, quantum computing, HPC, sovereign solutions, and security
  • Strengthen industry-specific offerings combining AI agents and the AI delivery platform
Key KPIsA metric the company considers important as a management benchmark.
  • Uvance revenue¥7,093 100 million
    Year on year against the same period last year+47%
  • Modernization revenue¥2,497 100 million
    Year on year against the same period last year+24%
  • Core free cash flow¥2,899 100 million
    Year on year against the same period last year+24.1%
  • Free cash flow¥4,826 100 million
    Year on year against the same period last year+124.8%
  • Domestic services orders received102%
  • Domestic services order backlog¥11,270 100 million
    Year on year against the same period last year107%
Segment results
  • Service solutions
    Revenue¥2,346.9 billion (up 4.5% year on year)
    Adjusted operating profit¥361.4 billion (up 24.7% year on year)
  • Hardware Solutions
    Revenue¥1,009.8 billion (down 9.8% year on year)
    Adjusted operating profit¥67.0 billion (up 9.3% year on year)
  • Ubiquitous Solutions
    Revenue¥229.8 billion (down 8.7% year on year)
    Adjusted operating profit¥38.8 billion (up 23.8% year on year)
  • Eliminations and Corporate
    Revenue(¥83.6 billion)
    Adjusted operating profit(¥76.7 billion)
Medium-term management plan targets
  • Consolidated adjusted operating margin
    TargetStated comparison: improvement from 7% to 11%
    Fiscal yearFY2022 to FY2025
  • Service solutions adjusted operating margin
    TargetImprovement from 8% to 15%
    Fiscal yearFY2022 to FY2025
  • Uvance revenue
    Target7,000
    Actual results7,093
  • Modernization revenue
    Target3,300
    Actual results2,497
Orders received and order backlog
Domestic services order backlog¥1,127.0 billion
Of which, scheduled for recognition as revenue in FY2026¥1,033.0 billion scheduled for recognition as revenue in FY2026
Uvance orders7,275
Modernization orders3,992
Number of employees
Number of EmployeesApproximately 30,000 domestic SEs (explanation of generative AI use)
Annual Dividend
Annual dividend per share¥50
Interim¥15
End of period¥35
Payout ratio
20%
Acquisition of treasury shares
Acquisition amount¥170.0 billion (FY2025)
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredFY2025
Net Sales¥35,029 100 million (YoY -1.3%)
Operating profit¥3,483 100 million (before adjustment) (YoY +31.4%)
Net income¥4,494 100 million (profit for the year, before adjustment) (YoY +104.5%)
Gross Profit MarginRate 38.7% (Service Solutions) / Year-on-year change (points) 2
Operating profit marginRate 11.2% (adjusted consolidated operating margin) / Year-on-year change (points) 2.5
Full-year earnings forecastRevenue ¥35,100 100 million / Adjusted operating profit ¥4,250 100 million / Adjusted net income ¥3,200 100 million / Operating profit ¥4,150 100 million (before adjustment) / Profit for the period ¥3,100 100 million (before adjustment)
Self-assessment against the planUvance and Modernization exceeded their targets
Segment resultsSegment Service solutions / Revenue ¥2,346.9 billion (up 4.5% year on year) / Adjusted operating profit ¥361.4 billion (up 24.7% year on year), Segment Hardware Solutions / Revenue ¥1,009.8 billion (down 9.8% year on year) / Adjusted operating profit ¥67.0 billion (up 9.3% year on year), Segment Ubiquitous Solutions / Revenue ¥229.8 billion (down 8.7% year on year) / Adjusted operating profit ¥38.8 billion (up 23.8% year on year), Segment Eliminations and Corporate / Revenue (¥83.6 billion) / Adjusted operating profit (¥76.7 billion)
Breakdown of Factors Affecting the ChangeFactors Impact of higher revenue / Amount +¥41.0 billion (Service Solutions), Factors Profitability Improvement / Amount +¥43.7 billion (Service Solutions), Factors Increased investment and other factors / Amount (¥13.2 billion) (Service Solutions)
Key KPIsIndicator name Uvance revenue / Value ¥7,093 100 million / Year on year against the same period last year +47%, Indicator name Modernization revenue / Value ¥2,497 100 million / Year on year against the same period last year +24%, Indicator name Core free cash flow / Value ¥2,899 100 million / Year on year against the same period last year +24.1%, Indicator name Free cash flow / Value ¥4,826 100 million / Year on year against the same period last year +124.8%, Indicator name Domestic services orders received / Value 102% / Year on year against the same period last year Not disclosed, Indicator name Domestic services order backlog / Value ¥11,270 100 million / Year on year against the same period last year 107%
Number of employeesNumber of Employees Approximately 30,000 domestic SEs (explanation of generative AI use) / Changes during the period and hiring plan Not disclosed
Assumptions Underlying the Business OutlookUSD/JPY ¥150 / EUR/JPY ¥170 per euro / GBP/JPY ¥195 per pound
Medium-term management plan targetsItem Consolidated adjusted operating margin / Target Stated comparison: improvement from 7% to 11% / Fiscal year FY2022 to FY2025, Item Service solutions adjusted operating margin / Target Improvement from 8% to 15% / Fiscal year FY2022 to FY2025, Item Uvance revenue / Target ¥7,000 100 million / Actual results ¥7,093 100 million, Item Modernization revenue / Target ¥3,300 100 million / Actual results ¥2,497 100 million
Annual DividendAnnual dividend per share ¥50 / Interim ¥15 / End of period ¥35
Payout ratio20%
Acquisition of treasury sharesAcquisition amount ¥170.0 billion (FY2025) / Acquisition limit, number of shares, and period Not disclosed
Orders received and order backlogDomestic services order backlog ¥1,127.0 billion / Of which, scheduled for recognition as revenue in FY2026 ¥1,033.0 billion scheduled for recognition as revenue in FY2026 / Uvance orders 7,275 / Modernization orders 3,992
New initiativesChange the Service Solutions subsegments to industry-based management, Provide a generative AI environment to 36 countries overseas, Growth investments in AI platforms, physical AI, next-generation CPUs, quantum computing, HPC, sovereign solutions, and security, Strengthen industry-specific offerings combining AI agents and the AI delivery platform
Items this document does not state (11)
Ordinary incomeSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastUnit price and quantity metricsNumber of stores and locationsRisk amount incorporated into the outlookFinancial targetsCapital expendituresMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Profit increased in FY2025 due to the revenue growth effect in Service Solutions, improved profitability, and business portfolio reforms. Consolidated profit for the year increased due to higher profit from the core business, as well as gains on the sale of businesses including Shinko Electric Industries and General.

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Overview of Financial Results for Fiscal 2025 | Fujitsu Limited (6702) timely disclosure | Komori