Fujitsu (6702) AI Stock Analysis

• Market Cap: ¥6.60T
• Dividend Yield: 0.68%
• Average Volume (3M): 5.73M
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.76
• Revenue Growth: -8.58%
• EPS Growth: 83.16%
• Country: JP
• Employees: 123,527
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 46.56
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥4,909.49
• Price Target Upside: 36.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 248.99
• Revenue Forecast (FY): ¥3.55T

• Rating: 66 Neutral
• Price Target: ¥3,578.00 ▼(-0.28% Downside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is driven primarily by solid financial performance (improving profitability, strong ROE, low leverage) and a supportive earnings outlook in key segments, partly offset by weak technicals (clear downtrend despite oversold readings). Valuation is reasonable, but the low dividend yield limits support.

Positive Factors

Conservative balance sheet

Low leverage and sizable equity provide durable financial flexibility for an IT services firm. This conservatism supports investment in transformation projects, M&A or cyclical downturns without forcing distressed asset sales, and preserves credit capacity to back multi-year service contracts.

Improving profitability and high ROE

Sustained margin improvement indicates better cost control and a higher share of services/consulting mix, boosting durable earnings power. High ROE in the mid-20% range shows efficient capital use, enabling reinvestment in growth initiatives and supporting long-term shareholder returns from operations.

Growth in higher-margin services (Uvance & Service Solutions)

Strong expansion in Fujitsu Uvance and Service Solutions reflects structural revenue mix shift toward higher-margin digital transformation and managed services. This recurring, strategic growth reduces reliance on hardware cycles and supports more predictable long-term revenue and margin sustainability.

Negative Factors

Trailing revenue decline

A material TTM revenue decline weakens the durability of profit improvements: sustaining elevated margins and ROE depends on stabilizing top-line. Persistent revenue contraction risks eroding scale economics, customer footprint and the ability to fund ongoing service innovation over the medium term.

Cash conversion quality

Moderate cash conversion and free cash flow well below net income signal working-capital swings or higher investment needs. This reduces durable internal funding for capital expenditures, M&A or shareholder returns and raises sensitivity to any margin or revenue setbacks over the next several quarters.

Hardware, ubiquitous and international weakness

Declines in Hardware and Ubiquitous segments and international revenue contraction (partly from a carveout) show structural revenue headwinds and narrower geographic scale. Shrinking lower-margin hardware and lost international volume can limit diversification and make growth dependent on domestic service gains.

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

Overall fundamentals are solid: strong profitability improvement and high ROE with low leverage support resilience. The main offsets are TTM revenue decline and only mid-quality cash conversion (free cash flow materially below net income).

Income Statement

TTM (Trailing-Twelve-Months) profitability is strong for an IT services business, with net margin around 13% and solid operating profitability (EBIT margin ~9%). Margins improved meaningfully versus the most recent annual period (net margin ~6%), signaling better mix and/or cost control. The main weakness is growth: revenue is down in TTM and was slightly negative in the latest annual period, which raises questions about top-line momentum despite better profitability.

Balance Sheet

The balance sheet looks conservative, with low leverage (debt-to-equity ~0.10 in TTM and ~0.14 in the latest annual period), providing flexibility and downside protection. Equity levels are sizable relative to assets, and returns on equity are strong—especially in TTM (mid-20% range), reflecting improved earnings power. The key watch-out is that asset levels have been relatively steady while revenue has softened, so sustaining high returns likely depends on maintaining the recent margin improvement.

Cash Flow

Cash generation is healthy, with TTM free cash flow up sharply and free cash flow positive across periods. However, cash conversion is only moderate: TTM operating cash flow is relatively low compared with revenue, and free cash flow is meaningfully below net income (roughly ~58% in TTM), suggesting working-capital swings and/or higher investment needs. Overall cash flow is improving, but consistency and conversion quality are the main weaknesses.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	3.38T	3.55T	3.76T	3.71T	3.59T	3.59T
Gross Profit	1.20T	1.17T	1.16T	1.14T	1.12T	1.08T
EBITDA	425.87B	276.65B	346.81B	529.93B	413.15B	454.25B
Net Income	475.45B	219.81B	254.48B	215.18B	182.69B	202.70B
Balance Sheet
Total Assets	3.21T	3.50T	3.51T	3.27T	3.33T	3.19T
Cash, Cash Equivalents and Short-Term Investments	454.78B	236.08B	342.14B	355.90B	484.02B	481.83B
Total Debt	134.85B	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	271.75B	142.98B	113.38B	52.23B	105.10B	179.18B
Operating Cash Flow	395.75B	303.88B	309.22B	220.33B	248.35B	307.95B
Investing Cash Flow	228.80B	-114.16B	-157.24B	-42.81B	-59.27B	-71.56B
Financing Cash Flow	-499.04B	-215.47B	-181.49B	-313.58B	-193.69B	-219.63B

Fujitsu Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3588.00
• 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 JP:6702, the sentiment is Negative. The current price of 3588 is below the 20-day moving average (MA) of 3837.05, below the 50-day MA of 4132.20, and below the 200-day MA of 3752.87, indicating a bearish trend. The MACD of -195.04 indicates Positive momentum. The RSI at 38.87 is Neutral, neither overbought nor oversold. The STOCH value of 39.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6702.

Fujitsu Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3626	70 Outperform	¥723.99B	13.78	―	1.39%	4.95%	9.54%
9719	69 Neutral	¥1.78T	27.11	―	1.48%	42.98%	48.88%
4307	68 Neutral	¥2.48T	23.78	22.48%	1.14%	4.50%	16.63%
6702	66 Neutral	¥6.60T	13.38	15.02%	0.68%	-8.58%	83.16%
6701	62 Neutral	¥5.88T	23.49	11.69%	0.55%	2.68%	56.38%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
2327	57 Neutral	¥735.63B	26.49	10.07%	1.76%	11.66%	-0.21%

Fujitsu Corporate Events

Fujitsu Advances Share Buyback, Repurchasing Over 31 Million Shares Under Ongoing Program

Fujitsu has disclosed the latest status of its share repurchase program authorized by its board in April 2025, reporting that it bought back 9,107,200 common shares on the Tokyo Stock Exchange between January 1 and January 31, 2026 for a total of approximately 39.1 billion yen. Cumulatively under this authorization through January 31, 2026, the company has repurchased 31,007,400 shares for about 123.8 billion yen, moving significantly toward its ceiling of 120 million shares and 170 billion yen and signaling an ongoing commitment to shareholder returns and capital efficiency within the current buyback window ending March 31, 2026.

The most recent analyst rating on (JP:6702) stock is a Buy with a Yen4797.00 price target. To see the full list of analyst forecasts on Fujitsu stock, see the JP:6702 Stock Forecast page.

Fujitsu to Absorb SME and Regional Industry Solutions Business from Subsidiary

Fujitsu will carry out a simplified absorption-type company split effective April 1, 2026, under which it will take over from its wholly owned subsidiary Fujitsu Japan Limited the solutions and related businesses serving second-tier, small and midsize private-sector companies, as well as local agricultural, forestry, and fishery institutions. By consolidating these customer-facing operations directly under the parent, Fujitsu aims to streamline its organization, redeploy sales and system engineering resources, speed decision-making, and enhance efficiency and value delivery, in line with its medium-term management plan to strengthen long-term customer engagement and its positioning in Japan’s SME and regional industries IT solutions market.

The most recent analyst rating on (JP:6702) stock is a Hold with a Yen4380.00 price target. To see the full list of analyst forecasts on Fujitsu stock, see the JP:6702 Stock Forecast page.

Fujitsu Lifts Dividend Forecast on Upgraded Earnings and Cash Flow Outlook

Fujitsu announced that, following stronger-than-expected consolidated results for the first nine months of the fiscal year ending March 2026, it has revised upward its full-year earnings outlook and, in turn, raised its forecast for annual dividends per share. The company now plans to increase its year-end dividend forecast from 15 yen to 35 yen, lifting the projected annual dividend from 30 yen to 50 yen per share, supported by an anticipated rise in net profit and free cash flow; the final dividend decision will be made by the board in May 2026, signaling confidence in the company’s financial performance and providing a tangible benefit to shareholders compared with prior years’ payouts.

The most recent analyst rating on (JP:6702) stock is a Hold with a Yen4380.00 price target. To see the full list of analyst forecasts on Fujitsu stock, see the JP:6702 Stock Forecast page.

Fujitsu Lifts FY2025 Profit Outlook as Portfolio Shift Drives Earnings Surge

Fujitsu reported modest revenue growth but a sharp improvement in profitability for the nine months ended December 31, 2025, with revenue from continuing operations up 1.8% year-on-year to ¥2.45 trillion and operating profit nearly doubling to ¥211.0 billion. Profit attributable to owners of the parent surged 290.3% to ¥343.7 billion, while adjusted operating profit and adjusted profit for the period also rose strongly, reflecting higher underlying earnings after excluding one-off items such as restructurings and portfolio changes, including the classification of its Device Solutions business as discontinued operations. The company strengthened its balance sheet, lifting the equity ratio to 62.2% from 49.8% at the previous fiscal year-end, and upgraded its full-year FY2025 forecasts, now projecting ¥360.0 billion in operating profit and ¥425.0 billion in profit attributable to owners of the parent, alongside higher adjusted profit guidance. Fujitsu also revised its dividend outlook upward, targeting a full-year payout of ¥50 per share, and continued reshaping its portfolio with the inclusion of 1FINITY Inc. and exclusion of SHINKO ELECTRIC INDUSTRIES CO., LTD., underscoring an ongoing strategic shift toward higher-margin, service-centric operations that is improving capital efficiency and returns for shareholders.

The most recent analyst rating on (JP:6702) stock is a Hold with a Yen4380.00 price target. To see the full list of analyst forecasts on Fujitsu stock, see the JP:6702 Stock Forecast page.

Fujitsu Details Progress on Share Buyback Program Through December 2025

Fujitsu has disclosed the latest status of its ongoing share repurchase program authorized by its board in April 2025 under the Companies Act. Between December 1 and December 31, 2025, the company bought back 4,741,300 shares of its common stock on the Tokyo Stock Exchange for a total of approximately JPY 19.6 billion, bringing cumulative repurchases under the current authorization to 21,900,200 shares worth about JPY 84.7 billion as of December 31, 2025. The buyback, which can run through March 31, 2026 up to a ceiling of 120 million shares or JPY 170 billion, signals continued capital return to shareholders and may support earnings per share and share price, though management notes that the scale of purchases could be adjusted in response to changes in the business environment, funding needs, or regulatory constraints.

The most recent analyst rating on (JP:6702) stock is a Buy with a Yen4593.00 price target. To see the full list of analyst forecasts on Fujitsu stock, see the JP:6702 Stock Forecast page.

Fujitsu to Absorb Real Estate Subsidiary in April 2026 to Optimize Group Assets

Fujitsu will absorb its wholly owned consolidated subsidiary Fujitsu Home & Office Services Limited (FHO) in a simplified absorption-type merger effective April 1, 2026, with Fujitsu as the surviving entity and FHO to be dissolved. The move is aimed at centralizing ownership and management of FHO’s real estate assets to promote more effective asset utilization and optimize office space across the Fujitsu Group, with no new shares or cash consideration to be issued, and no impact on outside shareholders given FHO’s 100% ownership by Fujitsu.

The most recent analyst rating on (JP:6702) stock is a Buy with a Yen4593.00 price target. To see the full list of analyst forecasts on Fujitsu stock, see the JP:6702 Stock Forecast page.

Fujitsu to Absorb Key Frontech Businesses in Strategic Company Split to Bolster DX and Infrastructure Solutions

Fujitsu will consolidate key operations from its wholly owned subsidiary FUJITSU FRONTECH LIMITED by executing a simplified absorption-type company split effective April 1, 2026, under which Fujitsu will take over Frontech’s logistics products and logistics-related services, vein authentication, and RFID businesses. The move aligns with Fujitsu’s Medium-Term Management Plan and Business Model Portfolio Strategy, reinforcing its shift toward service-led digital transformation solutions and strengthening its social infrastructure capabilities, with no change to Fujitsu’s capital structure or shareholder approval required; the integration is expected to enable more comprehensive, higher-value total solutions for logistics and social infrastructure customers in Japan and abroad.

The most recent analyst rating on (JP:6702) stock is a Buy with a Yen4593.00 price target. To see the full list of analyst forecasts on Fujitsu stock, see the JP:6702 Stock Forecast page.

Fujitsu Completes Successful Tender Offer for BrainPad Shares

Fujitsu Limited announced the successful completion of its tender offer to acquire shares of BrainPad Inc., a company listed on the Tokyo Stock Exchange. The offer, which began on October 31, 2025, and ended on December 15, 2025, resulted in Fujitsu acquiring 18,044,811 shares, exceeding the minimum threshold required. This acquisition is expected to strengthen Fujitsu’s market position and expand its capabilities in data analytics and digital solutions, potentially benefiting stakeholders through enhanced service offerings.

The most recent analyst rating on (JP:6702) stock is a Buy with a Yen4593.00 price target. To see the full list of analyst forecasts on Fujitsu stock, see the JP:6702 Stock Forecast page.

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.

The most recent analyst rating on (JP:6702) stock is a Buy with a Yen5000.00 price target. To see the full list of analyst forecasts on Fujitsu stock, see the JP:6702 Stock Forecast page.