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Fujitsu Limited (JP:6702)
:6702
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Fujitsu
(OTC:6702)
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Rating:70Outperform
Price Target:
¥3,663.00
▲(1.95% Upside)
Fujitsu's overall stock score is driven by strong balance sheet fundamentals and positive technical indicators. However, challenges in revenue growth and declining profit margins, along with a low dividend yield, temper the overall score.
Fujitsu (6702) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
$6.61T
Dividend Yield0.78%
Average Volume (3M)4.25M
Price to Earnings (P/E)17.1
Beta (1Y)0.75
Revenue Growth-8.36%
EPS Growth45.42%
CountryJP
Employees123,527
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)96.64
Shares Outstanding2,071,108,400
10 Day Avg. Volume4,036,740
30 Day Avg. Volume4,247,680
Financial Highlights & Ratios
PEG Ratio-2.26
Price to Book (P/B)3.08
Price to Sales (P/S)1.51
P/FCF Ratio37.51
Enterprise Value/Market Cap0.88
Enterprise Value/Revenue1.64
Enterprise Value/Gross Profit5.00
Enterprise Value/Ebitda15.10
Forecast
1Y Price Target
$4,154.95Price Target Upside15.64% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Fujitsu Business Overview & Revenue Model
Company DescriptionFujitsu 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 MoneyFujitsu makes money primarily through its IT services and solutions, which constitute the largest segment of its revenue. This includes consulting, system integration, managed services, and outsourcing. Additionally, the company generates revenue from the sale of computing products such as servers, storage devices, and personal computers. Telecommunications services also contribute to its earnings, providing network infrastructure and solutions. Strategic partnerships with other technology firms and a focus on digital transformation initiatives help drive Fujitsu's growth and maintain its competitive edge in the ICT industry.
Fujitsu Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook for Fujitsu, with significant growth in the Service Solutions and Fujitsu Uvance segments, contributing to record operating profits. However, challenges remain in the Hardware Solutions and Ubiquitous Solutions segments, as well as international revenue declines.Q2-2025 Updates
Positive Updates
Service Solutions Growth
Service Solutions segment posted steady improvements with revenue of ¥1,017.5 billion, an increase of 3.4% over the last year's first half. Adjusted operating profit for Service Solutions was ¥88.7 billion, an increase of ¥25.2 billion compared to the first half of fiscal ‘23, with an operating profit margin improved by 2.3% to 8.7%.
Record Consolidated Operating Profit
Adjusted operating profit for the first half was ¥79.5 billion, ¥20.7 billion up from the previous year, marking a record for Fujitsu with an increase of 56.6% over the last year's first half.
Fujitsu Uvance Success
Orders for Fujitsu Uvance amounted to ¥223.1 billion, a major increase of over 30% from the last year, with overall revenue for the first half of the year at ¥200.7 million, up 31% year on year.
Modernization Business Expansion
Modernization business revenue for the first half was ¥82.8 billion, a significant increase of 69% from the previous year.
Device Solutions Performance
Device Solutions revenue was ¥147.4 billion, up 3.3% from the previous year, with adjusted operating profit at ¥13.4 billion, an increase of ¥4.1 billion.
Negative Updates
Hardware Solutions Decline
Hardware Solutions revenue was ¥456.6 billion, down 4.4% from the previous year, with an adjusted operating profit of ¥3.1 billion, representing a deterioration of ¥14.3 billion.
Ubiquitous Solutions Revenue Drop
Ubiquitous Solutions revenue was ¥108.6 billion, down 16.9% from the previous year, although adjusted operating profit increased by ¥2.3 billion.
International Revenue Decline
Revenue in international regions was ¥275.6 billion, down 4.4% year on year, due to the negative impact of the carveout of the low-profit German private cloud business.
Company Guidance
In the second quarter of fiscal year 2025, Fujitsu reported robust financial performance, particularly in its Service Solutions segment, which saw a revenue increase of 3.4% to ¥1,017.5 billion, and an adjusted operating profit rise by ¥25.2 billion to ¥88.7 billion, with a profit margin improvement of 2.3 percentage points to 8.7%. Despite a revenue decline in Hardware Solutions and Ubiquitous Solutions, the company's total consolidated revenue grew by 0.9% to ¥1,696.6 billion, with adjusted operating profit reaching ¥79.5 billion, a 56.6% increase year-on-year. The company’s strategic focus on digital transformation in Japan led to a 7% revenue increase domestically, although international revenue fell by 4% due to the carveout of low-profit businesses. Fujitsu Uvance, the company's growth driver, reported a 31% revenue increase to ¥200.7 million, highlighting its expansion in the modernization business and progress towards its fiscal 2025 revenue target of ¥700 billion. Additionally, Fujitsu's financial forecast for 2024 remains unchanged, anticipating revenues of ¥3,760 billion and an adjusted operating profit of ¥303 billion, underscoring the company's commitment to its growth and profitability strategies.Fujitsu Financial Statement Overview
Summary
Fujitsu exhibits strong profitability with effective cost management, as indicated by high gross profit margins. The balance sheet is robust with a healthy equity ratio and low leverage. However, fluctuations in net profit margins and inconsistent revenue growth present challenges.Income Statement
Fujitsu's income statement reveals strong gross profit margins, averaging around 32% over recent years, indicating efficient cost management. However, the net profit margin has fluctuated, currently at 6.2%, reflecting potential challenges in converting revenue to profit. Revenue growth is inconsistent, with a slight decline in recent periods, challenging sustainability. Overall, the company demonstrates profitability with some growth challenges.70
Positive
Balance Sheet
Fujitsu's balance sheet is robust with a healthy equity ratio of approximately 50%, indicating a strong asset base supported by equity. The debt-to-equity ratio is manageable at around 0.14, suggesting prudent leverage levels. Return on equity is moderate at 12.6%, showing effective use of shareholder funds. The stable equity structure and low leverage position the company well for future investments.75
Positive
Cash Flow
The cash flow statement reflects a stable operating cash flow with a positive trajectory. Free cash flow has grown significantly, indicating strong cash generation post-capital expenditures. However, the operating cash flow to net income ratio suggests some discrepancies in cash conversion efficiency. Overall, Fujitsu shows solid cash flow management with room for optimizing cash conversion.65
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.55T | 3.55T | 3.76T | 3.71T | 3.59T | 3.59T |
| Gross Profit | 1.17T | 1.17T | 1.16T | 1.14T | 1.12T | 1.08T |
| EBITDA | 386.43B | 276.65B | 346.81B | 529.93B | 413.15B | 454.25B |
| Net Income | 219.81B | 219.81B | 254.48B | 215.18B | 182.69B | 202.70B |
Balance Sheet | ||||||
| Total Assets | 3.50T | 3.50T | 3.51T | 3.27T | 3.33T | 3.19T |
| Cash, Cash Equivalents and Short-Term Investments | 236.08B | 236.08B | 342.14B | 355.90B | 484.02B | 481.83B |
| Total Debt | 247.09B | 247.09B | 245.68B | 211.18B | 285.32B | 316.32B |
| Total Liabilities | 1.60T | 1.60T | 1.60T | 1.53T | 1.62T | 1.64T |
| Stockholders Equity | 1.74T | 1.74T | 1.75T | 1.59T | 1.59T | 1.45T |
Cash Flow | ||||||
| Free Cash Flow | 142.98B | 142.98B | 113.38B | 52.23B | 105.10B | 179.18B |
| Operating Cash Flow | 303.88B | 303.88B | 309.22B | 220.33B | 248.35B | 307.95B |
| Investing Cash Flow | -89.18B | -114.16B | -157.24B | -42.81B | -59.27B | -71.56B |
| Financing Cash Flow | -240.45B | -215.47B | -181.49B | -313.58B | -193.69B | -219.63B |
Fujitsu Technical Analysis
Positive
3593.00
Price Trends
3499.34
Positive
3429.97
Positive
3162.72
Positive
Market Momentum
37.67
Positive
48.85
Neutral
15.39
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6702, the sentiment is Positive. The current price of 3593 is below the 20-day moving average (MA) of 3625.40, above the 50-day MA of 3499.34, and above the 200-day MA of 3162.72, indicating a neutral trend. The MACD of 37.67 indicates Positive momentum. The RSI at 48.85 is Neutral, neither overbought nor oversold. The STOCH value of 15.39 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6702.
Fujitsu Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | ¥6.39T | 31.30 | 8.97% | 0.60% | -0.35% | 32.66% | |
70 Outperform | $6.61T | 17.13 | 11.82% | 0.78% | -8.36% | 45.42% | |
70 Neutral | ¥1.43T | 28.98 | 16.96% | 1.56% | 33.00% | 21.00% | |
67 Neutral | ¥1.16T | 22.25 | 14.57% | 1.41% | 4.39% | 7.80% | |
66 Neutral | ¥3.31T | 34.14 | 21.60% | 1.08% | 3.28% | 16.48% | |
61 Neutral | ¥5.56T | 39.07 | 7.78% | 0.63% | 3.73% | 11.64% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
JP:6702
Fujitsu
3,593.00
670.75
22.95%
NIPNF
NEC
31.54
12.47
65.39%
NTTDF
NTT DATA
24.00
6.73
38.97%
NURAF
Nomura Research Institute
40.19
1.29
3.32%
JP:3626
TIS Inc.
4,970.00
1,349.44
37.27%
JP:9719
SCSK Corporation
4,565.00
1,634.30
55.76%
Fujitsu Corporate Events
Fujitsu Reports Strong Profit Growth Despite Revenue Dip in Q1 FY2025
Jul 30, 2025
Fujitsu’s financial results for the first quarter of FY2025 show a slight decline in revenue by 1.2% compared to the previous year, but a significant increase in operating profit by 133.7% and profit before income taxes by 86.3%. The company has also reported a substantial rise in profit attributable to owners of the parent by 917.8%. This performance indicates strong operational efficiency and strategic adjustments, despite a challenging market environment. The announcement highlights Fujitsu’s solid financial positioning and its ability to adapt to market changes, which may positively influence stakeholders’ confidence.
The most recent analyst rating on (JP:6702) stock is a Buy with a Yen3400.00 price target. To see the full list of analyst forecasts on Fujitsu stock, see the JP:6702 Stock Forecast page.
Fujitsu Announces Key Appointments to Governance Committees
Jun 23, 2025
Fujitsu Limited has announced appointments to its Executive Nomination and Compensation Committees, emphasizing its commitment to transparency and objectivity in corporate governance. The reappointments and new appointments aim to ensure fair processes for nominating directors and determining executive compensation, reinforcing Fujitsu’s governance structure and potentially impacting its operational integrity and stakeholder trust.
The most recent analyst rating on (JP:6702) stock is a Buy with a Yen3400.00 price target. To see the full list of analyst forecasts on Fujitsu stock, see the JP:6702 Stock Forecast page.
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.