Education
About Us
Working with TipRanks
Follow Us
Fujitsu (FJTSY)
OTHER OTC:FJTSY
Top Page
Fujitsu
(OTC:FJTSY)
Select Model
Select Model
Rating:74Outperform
Price Target:
$30.00
â–²(10.95% Upside)
Fujitsu's overall stock score reflects strong financial performance and positive technical indicators, supported by promising growth in key business segments. However, concerns about revenue decline and challenges in certain segments temper the outlook. The company's strategic focus on modernization and Uvance expansion is a positive sign for future growth.
Positive Factors
Service Solutions Growth
The growth in Service Solutions indicates strong demand and effective execution in a key segment, contributing to long-term revenue stability and market leadership.
Uvance Revenue Surge
The significant increase in Uvance revenue highlights successful innovation and expansion, positioning Fujitsu well in emerging tech markets and enhancing its competitive edge.
Modernization Business Expansion
The rapid expansion of the modernization business underscores Fujitsu's strategic focus on digital transformation, which is crucial for sustaining growth and adapting to industry changes.
Negative Factors
Revenue Decline in Hardware Solutions
The decline in Hardware Solutions revenue reflects challenges in maintaining sales momentum and currency fluctuations, which could affect long-term profitability and market share.
Ubiquitous Solutions Revenue Decline
The drop in Ubiquitous Solutions revenue signals potential strategic missteps or market exits that may hinder growth and reduce Fujitsu's global footprint.
International Region Challenges
Challenges in international markets suggest difficulties in global operations and strategic adjustments, potentially limiting Fujitsu's ability to capitalize on global opportunities.
Fujitsu (FJTSY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$50.51B
Dividend Yield0.54%
Average Volume (3M)7.71K
Price to Earnings (P/E)16.3
Beta (1Y)0.28
Revenue Growth-8.17%
EPS Growth84.10%
CountryUS
Employees123,527
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.36
Shares Outstanding2,071,108,400
10 Day Avg. Volume6,988
30 Day Avg. Volume7,710
Financial Highlights & Ratios
PEG Ratio-1.39
Price to Book (P/B)3.47
Price to Sales (P/S)1.70
P/FCF Ratio42.26
Enterprise Value/Market Cap0.76
Enterprise Value/Revenue0.01
Enterprise Value/Gross Profit0.04
Enterprise Value/Ebitda0.11
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Fujitsu Business Overview & Revenue Model
Company DescriptionFujitsu Limited, a leading Japanese information and communication technology (ICT) company, offers a comprehensive range of technology products, solutions, and services. Founded in 1935, Fujitsu operates in various sectors, including IT services, computing products, and telecommunications. The company provides services such as cloud computing, data center management, cybersecurity, and IT infrastructure solutions, alongside hardware products like servers, storage systems, and personal computers. With a focus on innovation and sustainability, Fujitsu aims to drive digital transformation for businesses worldwide.
How the Company Makes MoneyFujitsu generates revenue through multiple streams, primarily from its IT services and solutions segment, which includes consulting, system integration, and managed services. The company also earns income from its hardware products, including servers, storage systems, and personal computers. Significant revenue comes from long-term contracts with enterprise clients, government agencies, and partnerships with technology firms. Additionally, Fujitsu's investments in cutting-edge technologies, such as artificial intelligence and IoT, enhance its service offerings and market position, contributing to its overall earnings. Strategic collaborations and alliances with other technology providers further bolster its revenue potential by expanding its product and service capabilities.
Fujitsu Earnings Call Summary
Earnings Call Date:Oct 30, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Jan 29, 2026
Earnings Call Sentiment Neutral
The earnings call reflected a mix of positive and negative trends. While Service Solutions showed strong growth and profitability, challenges were evident in Hardware and Ubiquitous Solutions, as well as in international markets. Overall, the company's performance was aligned with its plan, with significant achievements in certain segments but notable challenges in others.Q2-2025 Updates
Positive Updates
Service Solutions Growth
Service Solutions posted steady improvements with revenue for the first half at ¥1,017.5 billion, a 3.4% increase over the previous year. Adjusted operating profit increased by ¥25.2 billion, with the profit margin improving by 2.3 percentage points to 8.7%.
Record Profit Margins
Adjusted operating profit for the first half reached ¥79.5 billion, up ¥20.7 billion from the previous year, marking a 56.6% increase and a record for Fujitsu.
Uvance Revenue Surge
Revenue from Fujitsu Uvance grew by 31% year over year, with vertical areas nearly doubling their revenue. Uvance now represents 20% of total revenue in Service Solutions.
Modernization Business Expansion
Modernization business revenue for the first half was ¥82.8 billion, a 69% increase from the previous year, on track to meet the full-year target of ¥200 billion.
Improved Profitability
Profitability improved significantly, with a gross margin increase of 2.6 percentage points to 35.1%.
Negative Updates
Decline in Hardware Solutions
Revenue and profit for Hardware Solutions fell due to a pullback from last year's large-scale deals and the negative impact of the weak yen.
Ubiquitous Solutions Revenue Decline
Revenue for Ubiquitous Solutions was down 16.9% from the previous year, primarily due to exiting the business in Europe.
International Region Challenges
Revenue in international regions decreased by 4.4% year on year, impacted by the carveout of low-profit business in Germany.
Slower Demand Recovery in Device Solutions
Device Solutions saw lower than expected demand recovery, with results below plan despite a 3.3% year-over-year revenue increase.
Company Guidance
In the second quarter of fiscal year 2025, Fujitsu reported significant improvements in its financial metrics, particularly in the Service Solutions segment, which drove the company's growth. The segment posted a revenue of ¥1,017.5 billion, up 3.4% from the previous year, with a notable 7% increase in Japan. Adjusted operating profit in the segment rose by ¥25.2 billion to ¥88.7 billion, translating to an operating profit margin of 8.7%, an improvement of 2.3 percentage points. Fujitsu's total consolidated revenue was ¥1,696.6 billion, a 0.9% increase, despite declines in the Hardware and Ubiquitous Solutions segments. The company's overall adjusted operating profit increased by ¥20.7 billion to ¥79.5 billion, achieving a record 56.6% growth compared to the previous year's first half. Fujitsu's financial forecast for 2024 remains unchanged, with expectations of ¥3,760 billion in revenue and ¥303 billion in adjusted operating profit. The company is focusing on expanding its Fujitsu Uvance and modernization business to sustain growth and improve profitability.Fujitsu Financial Statement Overview
Summary
Fujitsu demonstrates strong profitability and cash flow management, with stable leverage and effective equity utilization. However, the significant revenue decline in the TTM is a concern and could impact future performance if not addressed. The company should focus on reversing the revenue trend while maintaining its operational efficiency and financial stability.Income Statement
Fujitsu's income statement shows a mixed performance. The TTM data indicates a significant revenue decline of 24.82%, which is concerning. However, the company maintains strong profitability with a net profit margin of 13.05% and a gross profit margin of 34.69%. The EBIT and EBITDA margins are healthy, reflecting operational efficiency. The revenue growth rate has been inconsistent over the years, showing both positive and negative growth.Balance Sheet
The balance sheet is relatively stable with a low debt-to-equity ratio of 0.10 in the TTM, indicating low leverage. The return on equity is strong at 24.49%, suggesting effective use of equity to generate profits. The equity ratio is not explicitly calculated, but the company's equity position appears solid given the low debt levels.Cash Flow
Fujitsu's cash flow statement is robust, with a significant free cash flow growth rate of 42.72% in the TTM. The operating cash flow to net income ratio is 0.33, indicating good cash generation relative to net income. The free cash flow to net income ratio of 0.58 suggests effective cash management. Overall, the cash flow metrics reflect strong liquidity and financial health.| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.61T | 3.55T | 3.76T | 3.71T | 3.59T | 3.59T |
| Gross Profit | 901.37B | 1.17T | 1.16T | 1.14T | 1.12T | 1.08T |
| EBITDA | 358.62B | 445.80B | 370.73B | 557.97B | 446.38B | 471.68B |
| Net Income | 356.54B | 219.81B | 254.48B | 215.18B | 182.69B | 202.70B |
Balance Sheet | ||||||
| Total Assets | 22.03B | 3.50T | 3.51T | 3.27T | 3.33T | 3.19T |
| Cash, Cash Equivalents and Short-Term Investments | 4.39B | 236.08B | 342.14B | 355.90B | 484.02B | 481.83B |
| Total Debt | 1.34B | 247.09B | 245.68B | 211.18B | 285.32B | 316.32B |
| Total Liabilities | 8.54B | 1.60T | 1.60T | 1.53T | 1.62T | 1.64T |
| Stockholders Equity | 13.36B | 1.74T | 1.75T | 1.59T | 1.59T | 1.45T |
Cash Flow | ||||||
| Free Cash Flow | 283.88B | 142.98B | 113.38B | 52.23B | 105.10B | 179.18B |
| Operating Cash Flow | 394.21B | 303.88B | 309.22B | 220.33B | 248.35B | 307.95B |
| Investing Cash Flow | 478.37M | -89.18B | -157.24B | -42.81B | -59.27B | -71.56B |
| Financing Cash Flow | -214.93B | -240.45B | -181.49B | -313.58B | -193.69B | -219.63B |
Fujitsu Technical Analysis
Positive
27.04
Price Trends
26.65
Positive
25.65
Positive
23.93
Positive
Market Momentum
0.38
Negative
65.17
Neutral
99.97
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FJTSY, the sentiment is Positive. The current price of 27.04 is below the 20-day moving average (MA) of 27.28, above the 50-day MA of 26.65, and above the 200-day MA of 23.93, indicating a bullish trend. The MACD of 0.38 indicates Negative momentum. The RSI at 65.17 is Neutral, neither overbought nor oversold. The STOCH value of 99.97 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FJTSY.
Fujitsu Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $41.15B | 19.76 | 14.50% | 1.46% | 7.44% | -4.57% | |
79 Outperform | $282.96B | 36.39 | 30.25% | 2.21% | 4.51% | 21.89% | |
79 Outperform | $172.70B | 23.20 | 25.35% | 2.25% | 6.58% | 1.19% | |
76 Outperform | $74.32B | 22.59 | 29.15% | 2.58% | 4.62% | 1.06% | |
74 Outperform | $30.40B | 19.12 | 16.39% | 2.78% | -1.97% | 48.61% | |
74 Outperform | $50.51B | 16.26 | 11.82% | 0.54% | -8.17% | 84.10% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
FJTSY
Fujitsu
27.97
10.16
57.06%
ACN
Accenture
281.82
-60.18
-17.60%
CTSH
Cognizant
85.77
10.31
13.66%
INFY
Infosys
18.04
-4.09
-18.48%
IBM
International Business Machines
302.72
90.80
42.85%
WIT
Wipro
2.91
-0.39
-11.82%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.