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NEC Delivers Strong Profit Growth and Higher Dividends Despite Modest Revenue Rise

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NEC Delivers Strong Profit Growth and Higher Dividends Despite Modest Revenue Rise

Meet Samuel – Your Personal Investing Prophet

NEC ( (JP:6701) ) has issued an announcement.

NEC reported consolidated revenue of ¥3.58 trillion for the year ended March 31, 2026, up 4.7% year on year, as operating profit jumped 40.3% to ¥359.9 billion and net profit attributable to owners of the parent climbed 54.3% to ¥270.2 billion. Profitability metrics improved markedly, with operating margin rising to 10.0% and return on equity to 13.0%, while total assets increased to ¥4.47 trillion and equity attributable to owners reached ¥2.20 trillion.

Non-GAAP operating profit rose 27.6% to ¥397.2 billion and Non-GAAP EPS advanced to ¥210.11, supported by stronger operating cash flow of ¥438.5 billion and a healthier balance sheet. NEC revised its year-end dividend for FY2025/26 to ¥22 (total annual ¥38 after a 5-for-1 share split) and signaled continued shareholder returns, while forecasting FY2026/27 revenue of ¥3.5 trillion, slightly lower year on year, but with further profit growth, targeting Non-GAAP operating profit of ¥420 billion and Non-GAAP net profit of ¥285 billion.

The company’s outlook suggests management is prioritizing margin expansion and cash generation over top-line growth in the near term, a stance likely to support capital efficiency and dividend capacity. Improved equity ratios and a return to positive equity-method contributions underline a more robust financial position, which may enhance NEC’s competitive standing in the ICT sector and provide greater resilience for investors amid a slower revenue trajectory.

The most recent analyst rating on (JP:6701) stock is a Buy with a Yen5200.00 price target. To see the full list of analyst forecasts on NEC stock, see the JP:6701 Stock Forecast page.

More about NEC

NEC Corporation is a Japan-based information and communications technology company listed on the Tokyo Stock Exchange, providing IT services, network solutions and integrated systems for corporate and public-sector clients. The group focuses on digital transformation, social infrastructure, and enterprise solutions, competing globally in telecoms, computing and related services.

Average Trading Volume: 11,113,503

Technical Sentiment Signal: Buy

Current Market Cap: Yen6128B

For an in-depth examination of 6701 stock, go to TipRanks’ Overview page.

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