KDDI CORPORATION's share price continued to trade in the low ¥3,000s in September, while Japanese and U.S. brokerages raised their target prices. The earnings release indicated that revenue and profit for the first quarter of the fiscal year ending March 2027 were expected to exceed the previous year.
KDDI CORPORATION's share price rose from ¥3,031 on 11 September to ¥3,109 on 17 September, then fell back to ¥3,060 on 18 September. It has recently continued to move in the low ¥3,000s. From 15 to 17 September, Japanese and U.S. brokerages raised their target prices to ¥3,320, ¥3,438, and ¥3,300, respectively.
According to the earnings release issued on the same date, KDDI CORPORATION achieved substantial year-on-year increases in revenue and profit in the first quarter of the fiscal year ending March 2027, with revenue up 5.1% to ¥1,487.3 billion and adjusted operating profit up 21.1% to ¥314.3 billion. Growth in mobile revenue and AI- and data center-related businesses is driving profit growth. The full-year forecast continues to call for higher revenue and profit, and a higher dividend is planned.
Performance over the past 12 quarters has been improving. Net profit margins and operating margins have continued to improve, and revenue has expanded, while the equity ratio has shown a tendency to decline and interest-bearing debt has been increasing. As key points to monitor going forward, growth could be supported overall by increased mobile revenue and expansion in data center- and security-related businesses, while risks include the response to information management issues and a greater burden from power investments.