Key Highlights

  • Fujitsu's first-quarter fiscal 2026 Revenue rose 3.9 per cent to 779.4 billion yen, and adjusted operating profit rose 56.4 per cent to 54.9 billion yen.
  • Service Solutions adjusted operating profit rose 31.3 per cent, while Hardware Solutions swung to an adjusted operating loss of 3.7 billion yen.
  • The company left its fiscal 2026 forecast unchanged, including adjusted operating profit of 425.0 billion yen and a Dividend of 55 yen per share.

First-quarter results

Fujitsu Limited (OTC:FJTSY), whose unsponsored American depositary receipts trade over the counter and whose shares are listed in Tokyo under code 6702, reported first-quarter results for fiscal 2026 on 30 July 2026, covering the three months to 30 June under IFRS. Revenue rose 3.9 per cent to 779.4 billion yen. Operating profit rose 56.9 per cent to 52.5 billion yen, and adjusted operating profit rose 56.4 per cent to 54.9 billion yen, lifting the adjusted Margin 2.3 points to 7.0 per cent.

Reported profit attributable to owners of the parent fell 76.6 per cent to 40.1 billion yen, but the company explained that the prior-year period included about 146 billion yen from discontinued operations, including a gain on the sale of shares in SHINKO ELECTRIC. Fujitsu's fiscal year ends in March, so fiscal 2026 runs to 31 March 2027. Basic Earnings Per Share were 23.13 yen against 96.64 yen. On an adjusted basis, earnings per share rose to 24.15 yen from 16.75 yen. The statements were not reviewed by an auditor. Adjusted measures exclude certain items, such as 2.3 billion yen of M&A-related expenses in the quarter.

Services up, hardware down

Service Solutions revenue rose 6.7 per cent to 548.9 billion yen, with adjusted operating profit up 31.3 per cent to 62.8 billion yen, an 11.4 per cent margin. Uvance revenue grew 31 per cent, and gross margin improved to 37.2 per cent from 35.7 per cent. The company cited integrated delivery in Japan, AI-driven delivery and a shift toward value-based pricing.

Hardware Solutions revenue rose 4.5 per cent to 211.2 billion yen, but the segment swung to an adjusted operating loss of 3.7 billion yen, which the company attributed to revenue mix, higher component costs and a pullback from large Japanese deals. Ubiquitous Solutions revenue fell 28.1 per cent to 34.4 billion yen as it compared with last year's Windows 10 end-of-support Demand and large financial-sector deals.

Cash and forecast

Core free Cash Flow was 217.7 billion yen, and free cash flow was 214.4 billion yen against 401.7 billion yen a year earlier, when Shinko sale proceeds were included. Fujitsu reported a net cash position of 464.2 billion yen on a net interest-bearing basis.

The company did not revise its fiscal 2026 forecast: revenue of 3,510.0 billion yen, adjusted operating profit of 425.0 billion yen, an adjusted margin of 12.1 per cent, and adjusted profit attributable to owners of 320.0 billion yen. It also forecasts a full-year dividend of 55 yen per share, against 50 yen for fiscal 2025. These are forecasts, not results. Achieving the full-year adjusted operating profit would require the remaining three quarters to average about 123 billion yen, well above the first-quarter figure.

Listing context

Over-the-counter ADR lines can trade thinly, and the Tokyo listing is the primary market for Fujitsu shares.

What to watch

Fujitsu's Investor relations calendar lists first-half fiscal 2026 results for 29 October 2026, which would provide the next set of reported data. Items to monitor include whether Uvance growth and margin gains in Service Solutions continue, whether the Hardware Solutions loss narrows as component costs and deal mix evolve, how Ubiquitous Solutions compares against the high prior-year base, and any change to guidance.

The company also held an IR Day on 16 September 2026 on its Vision 2035 strategy; its materials may be of interest.