Fujitsu (6702) AI Stock Analysis

• Market Cap: $8.41T
• Dividend Yield: 0.68%
• Average Volume (3M): 5.73M
• Price to Earnings (P/E): 18.3
• Beta (1Y): 0.85
• 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: 0.69
• Enterprise Value/Revenue: 1.68
• Enterprise Value/Gross Profit: 4.97
• Enterprise Value/Ebitda: 14.78
• 1Y Price Target: $4,900.00
• Price Target Upside: 7.17% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥5,121.00 ▲(12.01% Upside)

Fujitsu's overall stock score is driven by strong financial performance and positive earnings call sentiment, highlighting growth in key segments. Technical indicators suggest moderate bullish momentum, while valuation metrics indicate fair pricing. Challenges in certain segments and international revenue declines are noted but do not overshadow the company's strategic growth initiatives.

Positive Factors

Balance sheet strength

Very conservative leverage and a strong equity base give Fujitsu durable financial flexibility. High ROE shows efficient capital use, supporting sustained investment in R&D, M&A or customer projects, and helps absorb cyclical ICT spending shocks over the medium term.

Service Solutions momentum

Growth and margin improvement in Services reflects durable demand for digital transformation and recurring contract structures. Higher-margin service mix increases revenue visibility and supports operating profit resilience, underpinning long-term shift away from cyclical hardware sales.

Fujitsu Uvance growth engine

Rapid expansion of Uvance and a large order backlog indicate a scalable, higher-growth business line. As a modernization and solution-focused unit, it strengthens recurring revenue potential and diversifies earnings away from legacy hardware, supporting medium-term growth targets.

Negative Factors

Negative top-line trend

Persistent negative revenue growth pressures long-term operating leverage: even with margin gains, shrinking sales constrain reinvestment capacity and limit opportunity to scale services. Without sustained top-line recovery, growth initiatives and margin sustainability face headwinds.

International revenue decline

Carveouts reduced international scale and geographic diversification, concentrating growth in Japan. While margins may improve, reduced global footprint raises execution risk for multinational clients and limits exposure to higher-growth markets, affecting medium-term revenue diversification.

Hardware Solutions weakness

Declining hardware sales and sharply lower profitability reflect structural pressure in legacy product lines. Ongoing weakness forces resource reallocation to services, risks margin dilution during transition, and may reduce competitiveness for customers seeking integrated hardware-software solutions.

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: Positive
• Last Price: 4572.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 4572 is above the 20-day moving average (MA) of 4364.85, above the 50-day MA of 4219.90, and above the 200-day MA of 3601.27, indicating a bullish trend. The MACD of 107.56 indicates Negative momentum. The RSI at 68.03 is Neutral, neither overbought nor oversold. The STOCH value of 88.54 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6702.

Fujitsu Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6702	74 Outperform	$8.41T	18.26	15.02%	0.68%	-8.58%	83.16%
4307	74 Outperform	$3.41T	33.76	22.48%	1.14%	4.50%	16.63%
3626	73 Outperform	¥1.14T	21.36	―	1.39%	4.95%	9.54%
9719	69 Neutral	¥1.77T	28.84	―	1.48%	42.98%	48.88%
6701	62 Neutral	¥8.01T	33.52	11.69%	0.55%	2.68%	56.38%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Fujitsu Corporate Events

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.

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.

The most recent analyst rating on (JP:6702) stock is a Buy with a Yen4262.00 price target. To see the full list of analyst forecasts on Fujitsu stock, see the JP:6702 Stock Forecast page.

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.

The most recent analyst rating on (JP:6702) stock is a Buy with a Yen4262.00 price target. To see the full list of analyst forecasts on Fujitsu stock, see the JP:6702 Stock Forecast page.

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.

The most recent analyst rating on (JP:6702) stock is a Buy with a Yen4262.00 price target. To see the full list of analyst forecasts on Fujitsu stock, see the JP:6702 Stock Forecast page.