Fujitsu (6702) AI Stock Analysis

• Market Cap: $7.21T
• Dividend Yield: 0.72%
• Average Volume (3M): 5.73M
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.81
• Revenue Growth: -8.58%
• EPS Growth: 83.16%
• Country: JP
• Employees: 123,527
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 54.95
• Shares Outstanding: 2,071,108,400
• 10 Day Avg. Volume: 7,309,550
• 30 Day Avg. Volume: 5,728,526
• PEG Ratio: -2.26
• Price to Book (P/B): 3.08
• Price to Sales (P/S): 1.51
• P/FCF Ratio: 37.51
• Enterprise Value/Market Cap: 0.81
• Enterprise Value/Revenue: 1.68
• Enterprise Value/Gross Profit: 4.97
• Enterprise Value/Ebitda: 14.78
• 1Y Price Target: $5,012.46
• Price Target Upside: 24.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥4,798.00 ▲(18.82% Upside)

Fujitsu's overall stock score reflects strong technical momentum and positive earnings call highlights, particularly in the Service Solutions and Fujitsu Uvance segments. However, financial performance is mixed with declining revenue and profitability, and valuation metrics indicate limited dividend income potential. The absence of significant corporate events further consolidates the focus on these key areas.

Positive Factors

Balance Sheet Strength

A low debt-to-equity ratio indicates conservative leverage, enhancing financial stability and providing flexibility for future investments.

Cash Flow Growth

Strong free cash flow growth supports liquidity and provides resources for reinvestment, debt reduction, or shareholder returns, enhancing long-term financial health.

Return on Equity

A solid return on equity indicates efficient management and effective use of shareholder funds to generate profits, supporting sustainable growth.

Negative Factors

Revenue Decline

A significant decline in revenue growth can impact the company's ability to expand and compete, posing a challenge to long-term sustainability.

Profit Margin Pressure

Decreasing profit margins indicate rising costs or pricing pressures, which can erode profitability and affect long-term financial performance.

Cash Generation Concerns

A low conversion of net income to free cash flow can limit liquidity and restrict the company's ability to fund operations and growth initiatives.

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 primarily through its diverse range of IT services and solutions, which include consulting, system integration, and cloud services. These services are often provided on a subscription basis or as long-term contracts, contributing significantly to recurring revenue. Additionally, Fujitsu earns money from the sale of hardware products, such as servers and personal computers, along with software licensing and support services. Strategic partnerships with other technology firms and collaborations with enterprises across various industries also bolster its revenue streams. Furthermore, Fujitsu's focus on emerging technologies, such as AI and IoT, positions it to capture additional market opportunities and enhance its financial performance.

Fujitsu Financial Statement Overview

Summary

Fujitsu's financial performance is mixed. The balance sheet is strong with a low debt-to-equity ratio and solid return on equity. However, the income statement shows declining revenue and net profit margins, indicating pressure on profitability. Cash flow is improving, but a significant portion of net income is not translating into free cash flow, which could affect liquidity.

Income Statement

Fujitsu's income statement shows a mixed performance. The TTM data indicates a gross profit margin of 32.9%, which is healthy for the industry. However, the net profit margin has decreased to 6.2% from previous periods, reflecting some pressure on profitability. Revenue growth has been negative recently, with a decline of 27.1% in the TTM period, which is a concern. EBIT and EBITDA margins are stable but show slight declines, indicating some operational challenges.

Balance Sheet

The balance sheet is relatively strong, with a low debt-to-equity ratio of 0.14, indicating conservative leverage. Return on equity is solid at 12.7%, showing effective use of equity to generate profits. The equity ratio stands at 59.4%, suggesting a strong equity base compared to total assets, which enhances financial stability.

Cash Flow

Cash flow analysis reveals a positive trend in free cash flow growth, with a 39.1% increase in the TTM period. The operating cash flow to net income ratio is 0.22, indicating moderate cash generation relative to net income. However, the free cash flow to net income ratio is 0.47, suggesting that a significant portion of net income is not translating into free cash flow, which could be a concern for liquidity.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.47T	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	394.82B	276.65B	346.81B	529.93B	413.15B	454.25B
Net Income	374.69B	219.81B	254.48B	215.18B	182.69B	202.70B
Balance Sheet
Total Assets	3.18T	3.50T	3.51T	3.27T	3.33T	3.19T
Cash, Cash Equivalents and Short-Term Investments	641.44B	236.08B	342.14B	355.90B	484.02B	481.83B
Total Debt	196.31B	247.09B	245.68B	211.18B	285.32B	316.32B
Total Liabilities	1.27T	1.60T	1.60T	1.53T	1.62T	1.64T
Stockholders Equity	1.89T	1.74T	1.75T	1.59T	1.59T	1.45T
Cash Flow
Free Cash Flow	198.91B	142.98B	113.38B	52.23B	105.10B	179.18B
Operating Cash Flow	356.96B	303.88B	309.22B	220.33B	248.35B	307.95B
Investing Cash Flow	104.07B	-114.16B	-157.24B	-42.81B	-59.27B	-71.56B
Financing Cash Flow	-297.88B	-215.47B	-181.49B	-313.58B	-193.69B	-219.63B

Fujitsu Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4038.00
• 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 JP:6702, the sentiment is Neutral. The current price of 4038 is below the 20-day moving average (MA) of 4119.95, above the 50-day MA of 3907.63, and above the 200-day MA of 3412.98, indicating a neutral trend. The MACD of 51.07 indicates Positive momentum. The RSI at 49.37 is Neutral, neither overbought nor oversold. The STOCH value of 30.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6702.

Fujitsu Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6702	75 Outperform	$7.21T	15.66	15.02%	0.72%	-8.58%	83.16%
4307	74 Outperform	$3.10T	30.77	22.48%	1.14%	4.50%	16.63%
3626	73 Outperform	¥1.19T	22.47	―	1.44%	4.95%	9.54%
6701	72 Outperform	$7.58T	31.72	11.69%	0.52%	2.68%	56.38%
9719	66 Neutral	¥1.77T	28.87	―	1.48%	42.98%	48.88%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
9613	61 Neutral	―	―	―	―	3.73%	11.64%

Fujitsu Corporate Events

Fujitsu Announces Progress on Share Repurchase Program

Fujitsu Limited announced the status of its share repurchase program, with 4,477,300 shares repurchased for a total value of JPY 18,241,234,500 between November 1 and November 30, 2025. This move is part of a larger plan approved in April 2025, allowing for the repurchase of up to 120 million shares, reflecting Fujitsu’s strategic focus on enhancing shareholder value and optimizing its capital structure.

Fujitsu Announces Share Repurchase as Part of Strategic Financial Management

Fujitsu Limited announced the repurchase of 7,027,600 shares of its own stock, valued at approximately JPY 26.3 billion, as part of a broader share repurchase program authorized by its Board of Directors. This initiative, conducted through market trades on the Tokyo Stock Exchange, reflects Fujitsu’s strategic financial management and could potentially enhance shareholder value by reducing the number of outstanding shares.

Fujitsu Reports Robust Financial Growth in First Half of FY 2025

Fujitsu reported significant financial growth in the first half of FY 2025, with a notable increase in profits and earnings per share compared to the previous year. The company’s strategic restructuring, including the classification of Device Solutions as discontinued operations, has positively impacted its financial performance, indicating a strong market position and potential benefits for stakeholders.

Fujitsu Announces Tender Offer to Acquire BrainPad Inc.

Fujitsu Limited has announced its intention to acquire all shares of BrainPad Inc., a company listed on the Prime Market of the Tokyo Stock Exchange, through a tender offer. This strategic move aims to make BrainPad a wholly-owned subsidiary of Fujitsu, enhancing its market position and expanding its capabilities in data analytics and AI solutions. The acquisition involves agreements with major shareholders to tender their shares, reflecting Fujitsu’s commitment to strengthening its operations and competitive edge in the technology sector.

Fujitsu Announces Share Repurchase to Enhance Shareholder Value

Fujitsu Limited announced the repurchase of 5,654,000 of its own shares for approximately JPY 20.5 billion, as part of a larger plan approved in April 2025. This move is part of a strategic initiative to enhance shareholder value and optimize capital structure, potentially impacting the company’s market positioning and stakeholder interests.