Fujitsu (FJTSY) AI Stock Analysis

• Market Cap: $41.30B
• Dividend Yield: 0.54%
• Average Volume (3M): 7.71K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.30
• Revenue Growth: -8.17%
• EPS Growth: 84.10%
• Country: US
• Employees: 123,527
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.30
• Shares Outstanding: 2,071,108,400
• 10 Day Avg. Volume: 6,988
• 30 Day Avg. Volume: 7,710
• PEG Ratio: -1.39
• Price to Book (P/B): 3.47
• Price to Sales (P/S): 1.70
• P/FCF Ratio: 42.26
• Enterprise Value/Market Cap: 142.43
• Enterprise Value/Revenue: 1.73
• Enterprise Value/Gross Profit: 4.84
• Enterprise Value/Ebitda: 12.60
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.6
• Revenue Forecast (FY): $22.90B

• Rating: 62 Neutral
• Price Target: $24.50 ▼(-12.41% Downside)
• Action: Downgraded Date: 03/01/26
• Date: Action: Downgraded 03/01/26

The score is supported primarily by strong financial resilience (low leverage, solid profitability and cash flow), but is held back by clear technical weakness (downtrend across key moving averages with negative MACD) and the fundamental risk of declining revenue. Valuation is reasonable on earnings, though the dividend yield provides limited additional support.

Positive Factors

Conservative balance sheet

Low leverage and sizable equity give Fujitsu durable financial flexibility. This conservatism reduces insolvency risk, supports multi-year service contracts and strategic investments in cloud/AI, and provides a buffer to absorb prolonged demand softness without forced asset sales or heavy refinancing.

Strong cash generation

Robust operating and free cash flow in the trailing twelve months creates internal funding for capex, R&D and client delivery investments. Reliable cash generation supports reinvestment in high-growth initiatives and reduces dependence on external financing during strategic transitions.

Healthy profitability margins

Sustained gross, operating and net margins indicate structural operating efficiency. Strong margins improve return on equity and provide resiliency as revenue fluctuates, enabling the company to maintain profitability while investing in higher-margin software and managed services expansions.

Negative Factors

Declining revenue trend

A sharply negative top-line trajectory poses a lasting risk: shrinking revenue limits scalability, compresses future margin expansion opportunities, and increases reliance on cost cuts to preserve earnings. If contract wins don't recover, profitability gains may prove unsustainable.

Imperfect cash conversion

When operating cash falls short of net income and FCF only partially covers earnings, reported profits may reflect non-cash or working-capital effects. This weakens durable cash availability for dividends, buybacks, or strategic investments if revenue weakness persists.

Project-based revenue volatility

Significant reliance on project-based contracts creates lumpy revenue recognition and greater sensitivity to enterprise IT spending cycles. That structural variability makes revenue recovery more uncertain and complicates multi-quarter planning for capacity and margin preservation.

Fujitsu Business Overview & Revenue Model

Company Description

Fujitsu Limited operates as an information and communication technology company in Japan and internationally. The company operates through three segments: Technology Solutions, Ubiquitous Solutions, and Device Solutions. The company offers multi cloud and hybrid IT services; assessment and consultative services; SAP landscape transformation services; new workplace; datacentre products comprising integrated systems, storage solutions, servers, network switches, and infrastructure management; workplace products including personal computers, workstations, thin clients, displays, and peripheral devices; consumption based IT services; installation and implementation services; and hardware, software, and infrastructure support services, as well as electronic devices, air conditioning products, and network solutions. It also provides cyber security solutions, including cyber security consulting, managed security servies, and security operation and advanced threat centers; internet of things, artificial intelligence platform and solutions; and software products comprising FUJITSU Software Infrastructure Manager and FUJITSU Software ServerView Suite. Further, the company offers electronic components, such as semiconductor packages and batteries. It serves automotive, manufacturing, retail, financial services, transport, telecommunications, healthcare, and energy and utilities industries; the public sectors; and services providers. Fujitsu Limited was founded in 1923 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Fujitsu 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 Financial Statement Overview

Summary

Strong overall financial quality driven by a conservatively financed balance sheet (low leverage, strong solvency) and solid TTM profitability/cash generation. The key offset is a weakening revenue trend, including a steep TTM decline, which raises risk to the durability of current margins and earnings.

Income Statement

Profitability is a clear strength in TTM (Trailing-Twelve-Months), with solid gross and operating margins and a notably strong net margin versus recent annual periods. However, the top-line trajectory is the key weakness: revenue growth is negative in the latest annual period and sharply negative in TTM (Trailing-Twelve-Months), which raises questions about near-term demand and sustainability of the current earnings level despite improved margins.

Balance Sheet

The balance sheet appears conservatively financed, with low leverage (debt meaningfully below equity) and a strengthening position versus prior years. Equity is sizable relative to assets, and returns on equity are healthy—particularly in TTM (Trailing-Twelve-Months). The main watch item is that assets and equity fluctuate year to year, but overall solvency and financial flexibility look strong.

Cash Flow

Cash generation is a positive: operating cash flow and free cash flow are strong in TTM (Trailing-Twelve-Months), with a large step-up in free cash flow versus the latest annual result. That said, cash conversion is not perfect—operating cash flow is less than net income in TTM (Trailing-Twelve-Months), and free cash flow covers only a portion of net income—suggesting some earnings may be supported by working-capital or non-cash dynamics.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	3.41T	3.55T	3.76T	3.71T	3.59T	3.59T
Gross Profit	1.21T	1.17T	1.16T	1.14T	1.12T	1.08T
EBITDA	466.82B	445.80B	370.73B	557.97B	446.38B	471.68B
Net Income	478.50B	219.81B	254.48B	215.18B	182.69B	202.70B
Balance Sheet
Total Assets	3.22T	3.50T	3.51T	3.27T	3.33T	3.19T
Cash, Cash Equivalents and Short-Term Investments	455.09B	236.08B	342.14B	355.90B	484.02B	481.83B
Total Debt	134.94B	247.09B	245.68B	211.18B	285.32B	316.32B
Total Liabilities	1.19T	1.60T	1.60T	1.53T	1.62T	1.64T
Stockholders Equity	2.00T	1.74T	1.75T	1.59T	1.59T	1.45T
Cash Flow
Free Cash Flow	265.74B	142.98B	113.38B	52.23B	105.10B	179.18B
Operating Cash Flow	391.03B	303.88B	309.22B	220.33B	248.35B	307.95B
Investing Cash Flow	48.28B	-89.18B	-157.24B	-42.81B	-59.27B	-71.56B
Financing Cash Flow	-419.07B	-240.45B	-181.49B	-313.58B	-193.69B	-219.63B

Fujitsu Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 27.97
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FJTSY, the sentiment is Negative. The current price of 27.97 is above the 20-day moving average (MA) of 24.89, above the 50-day MA of 26.48, and above the 200-day MA of 24.86, indicating a bearish trend. The MACD of -1.26 indicates Positive momentum. The RSI at 38.53 is Neutral, neither overbought nor oversold. The STOCH value of 34.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FJTSY.

Fujitsu Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INFY	80 Outperform	$56.96B	18.61	32.85%	2.58%	4.62%	1.06%
ACN	73 Outperform	$126.71B	17.26	25.35%	2.25%	6.58%	1.19%
IBM	70 Outperform	$224.54B	21.51	35.26%	2.21%	4.51%	21.89%
CTSH	68 Neutral	$30.37B	14.13	15.16%	1.46%	7.44%	-4.57%
WIT	66 Neutral	$22.69B	15.26	15.82%	2.78%	-1.97%	48.61%
FJTSY	62 Neutral	$41.30B	12.76	11.82%	0.54%	-8.17%	84.10%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%