Fujitsu (FJTSY) AI Stock Analysis

• Market Cap: $50.91B
• Dividend Yield: 0.54%
• Average Volume (3M): 7.71K
• Price to Earnings (P/E): 15.4
• 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: 141.47
• Enterprise Value/Revenue: 2.11
• Enterprise Value/Gross Profit: 5.93
• Enterprise Value/Ebitda: 15.43
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: $31.00 ▲(10.83% Upside)

The score is driven primarily by strong financial resilience (low leverage, improved profitability and cash generation) and generally positive earnings-call execution in key growth areas. These strengths are tempered by the notable revenue weakening flagged in the financial statements and only mixed technical momentum despite prices holding above major moving averages.

Positive Factors

Conservative balance sheet

Fujitsu's low leverage and sizable equity provide durable financial flexibility to fund digital transformation, absorb cyclical shocks, and pursue strategic investments or M&A without heavy refinancing. A conservative capital structure supports long-term solvency and creditor confidence.

Improved cash generation

A material improvement in operating and free cash flow enhances Fujitsu's ability to self-fund modernization, invest in Uvance and recurring services, and maintain optionality on capital allocation. Strong FCF reduces reliance on external financing and supports durable investment capacity.

Expansion of high‑margin services (Uvance & Modernization)

Rapid growth in Uvance and modernization signals a structural shift toward higher‑margin, recurring services and industry verticals. Scaling these offerings diversifies revenue away from hardware, improves margin sustainability, and creates stickier client relationships over the medium term.

Negative Factors

Sharply negative revenue trend

A notable decline in top‑line over the latest annual and TTM periods is a durable headwind: shrinking revenue can erode scale economics, test margin sustainability, and force reliance on cost cuts or one‑off gains unless service growth materially offsets lost product sales.

Declines in Hardware and Ubiquitous segments

Contraction in product and device segments reduces business diversity and recurring revenue streams. Exiting markets that drive Ubiquitous sales trims scale and may limit cross‑sell opportunities, making long‑term revenue recovery harder even as services grow.

International revenue headwinds and carveouts

International contraction and strategic carveouts lower global footprint and reduce exposure to higher growth markets. Geographic concentration toward Japan and services raises execution risk for capturing worldwide digital transformation demand and could limit revenue upside over the medium term.

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

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.55T	3.76T	3.71T	3.59T	3.59T
Gross Profit	1.17T	1.16T	1.14T	1.12T	1.08T
EBITDA	445.80B	370.73B	557.97B	446.38B	471.68B
Net Income	219.81B	254.48B	215.18B	182.69B	202.70B
Balance Sheet
Total Assets	3.50T	3.51T	3.27T	3.33T	3.19T
Cash, Cash Equivalents and Short-Term Investments	236.08B	342.14B	355.90B	484.02B	481.83B
Total Debt	247.09B	245.68B	211.18B	285.32B	316.32B
Total Liabilities	1.60T	1.60T	1.53T	1.62T	1.64T
Stockholders Equity	1.74T	1.75T	1.59T	1.59T	1.45T
Cash Flow
Free Cash Flow	142.98B	113.38B	52.23B	105.10B	179.18B
Operating Cash Flow	303.88B	309.22B	220.33B	248.35B	307.95B
Investing Cash Flow	-89.18B	-157.24B	-42.81B	-59.27B	-71.56B
Financing Cash Flow	-240.45B	-181.49B	-313.58B	-193.69B	-219.63B

Fujitsu Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 27.97 is above the 20-day moving average (MA) of 27.70, above the 50-day MA of 27.08, and above the 200-day MA of 24.55, indicating a bullish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 53.20 is Neutral, neither overbought nor oversold. The STOCH value of 39.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FJTSY.

Fujitsu Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INFY	80 Outperform	$74.34B	22.65	32.85%	2.58%	4.62%	1.06%
CTSH	79 Outperform	$39.61B	19.02	14.50%	1.46%	7.44%	-4.57%
ACN	77 Outperform	$162.22B	21.80	25.35%	2.25%	6.58%	1.19%
FJTSY	74 Outperform	$50.91B	15.41	11.82%	0.54%	-8.17%	84.10%
IBM	71 Outperform	$286.68B	27.46	35.26%	2.21%	4.51%	21.89%
WIT	67 Neutral	$27.05B	17.32	15.81%	2.78%	-1.97%	48.61%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%