Fujitsu shares plunged immediately after the release of the interim results, and attention has since turned to profit growth in the services business and the monetisation of its AI-related businesses, against the backdrop of expanded collaboration with NVIDIA and progress on the MONAKA sales plan. We review the results, the progress of the partnership and the outlook for a recovery in second-half profitability.
Following the release of its interim results, Fujitsu reported higher first-half revenue year on year, but adjusted operating profit fell 6.1%. Higher hardware component costs and development investment weighed on company-wide profit, while the services business continued to post higher profit, with growth in Uvance also contributing. Expanding profit margins and AI-related orders in the second half are considered important.
The collaboration with NVIDIA is expanding from computing infrastructure into physical AI, and the timing of MONAKA sales is also becoming more specific. MONAKA is scheduled to begin sales of standalone CPUs and servers in November 2026, with shipments expected to ramp up from April 2027 onward. Partnerships with Anthropic and Palantir will also help strengthen the company's AI implementation support structure.
As part of Fujitsu's quantum strategy, development of a 256-qubit system and plans to unveil a 1,000-qubit system in fiscal 2026 are under way. The company aims to promote the adoption of quantum application development through the release of OpenQARP, but expanding its paid customer base is expected to require the accumulation of demonstrations and contracts.
Uvance is supporting growth with higher first-half revenue and orders, while profitability in the July-September quarter was affected by negative factors, making normalisation in the second half a prerequisite. Domestic orders are increasing, but passing through higher hardware prices and improving the profitability of new businesses will be key.
In light of the sharp share-price decline after the results, it will be necessary to monitor the pace of profit growth and profitability recovery in the second half when assessing the shares. The extent to which shipments and contracts for new businesses such as MONAKA, physical AI and quantum computing become concrete will be an important factor in investment decisions.