Fujitsu Limited (JP:6702)
:6702
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Fujitsu
(6702)
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Rating:62Neutral
Price Target:
¥3,362.00
▲(0.69% Upside)
Action:ReiteratedDate:03/01/26
The score is primarily supported by strong underlying financial quality (low leverage, strong returns, and improved profitability), but is meaningfully offset by weak technicals (downtrend across moving averages and negative MACD). Valuation is fair on P/E, though the low dividend yield provides limited additional support.
Positive Factors
Conservative Balance Sheet
Fujitsu's very low leverage and sizable equity provide financial flexibility and downside protection. Mid‑20% ROE in TTM indicates efficient capital use; a conservative balance sheet supports investment, contract performance, and resilience through macro cycles.
Negative Factors
Declining Revenue Trend
Top‑line has contracted recently, with TTM revenue down ~9.5%. Persistent revenue weakness pressures scale economics for project delivery and cloud services, forcing reliance on margin recovery rather than organic volume growth to sustain profits.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Fujitsu's very low leverage and sizable equity provide financial flexibility and downside protection. Mid‑20% ROE in TTM indicates efficient capital use; a conservative balance sheet supports investment, contract performance, and resilience through macro cycles.
Read all positive factors
Fujitsu (6702) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥5.79T
Dividend Yield0.68%
Average Volume (3M)5.73M
Price to Earnings (P/E)23.2
Beta (1Y)0.66
Revenue Growth-8.58%
EPS Growth83.16%
CountryJP
Employees123,527
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)46.56
Shares Outstanding1,739,778,300
10 Day Avg. Volume7,309,550
30 Day Avg. Volume5,728,526
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 CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥4,464.26Price Target Upside33.70% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)176.39
Revenue Forecast (FY)¥3.68T
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 c...
How the Company Makes Money
Fujitsu makes money primarily by selling IT services and solutions to enterprise and government customers under a mix of project-based and recurring contracts. Key revenue streams include: (1) Systems integration and project delivery: fees for des...
Fujitsu Earnings Call Summary
Earnings Call Date:Oct 30, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
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.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%.
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.
Read all updates
Q2-2025 Updates
Positive
Negative
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%.
Read all positive updates
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
Income Statement
72
Positive
Balance Sheet
84
Very Positive
Cash Flow
67
Positive
| 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 | 436.83B | 399.83B | 440.94B | 457.57B | 446.38B | 387.53B |
| 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 | -159.91B | -42.81B | -59.27B | -89.14B |
| Financing Cash Flow | -499.04B | -215.47B | -178.82B | -313.58B | -193.69B | -202.05B |
Fujitsu Technical Analysis
Negative
3339.00
Price Trends
3560.43
Negative
3874.63
Negative
3703.29
Negative
Market Momentum
-57.66
Negative
46.61
Neutral
61.60
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 3339 is above the 20-day moving average (MA) of 3314.73, below the 50-day MA of 3560.43, and below the 200-day MA of 3703.29, indicating a neutral trend. The MACD of -57.66 indicates Negative momentum. The RSI at 46.61 is Neutral, neither overbought nor oversold. The STOCH value of 61.60 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | ¥2.55T | 29.12 | 22.48% | 1.14% | 4.50% | 16.63% | |
64 Neutral | ¥756.11B | 20.55 | ― | 1.39% | 4.95% | 9.54% | |
62 Neutral | ¥5.79T | 23.25 | 15.02% | 0.68% | -8.58% | 83.16% | |
62 Neutral | ¥5.27T | 25.48 | 12.48% | 0.55% | 2.68% | 56.38% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | ¥679.64B | 22.20 | 10.07% | 1.76% | 11.66% | -0.21% |
* Technology Sector Average
JP:6702
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Fujitsu Corporate Events
Fujitsu to Cancel 16% of Outstanding Shares in Major Capital Structure Move
Mar 26, 2026
Fujitsu has resolved to cancel 331,330,185 shares of its common stock, representing 16.0% of its total issued shares before cancellation, with the effective date set for March 31, 2026. Following the move, the company expects to have 1,739,778,265...
Fujitsu Reshapes Board With New Independent Director and Governance-Focused Reappointments
Mar 26, 2026
Fujitsu has announced planned appointments to its Board of Directors and Audit Supervisory Board, effective after shareholder approval at the June 29, 2026 annual meeting, in line with its corporate governance policy. The slate includes the reapp...
Fujitsu Completes ¥170 Billion Share Buyback to Bolster Shareholder Returns
Mar 25, 2026
Fujitsu has completed a share repurchase program authorized by its board in April 2025, buying back 3,609,700 shares of common stock on the Tokyo Stock Exchange between March 1 and March 24, 2026, for a total of about 12.6 billion yen. This final ...
Fujitsu Nears Cap on ¥170 Billion Share Buyback Program
Mar 3, 2026
Fujitsu has continued its share repurchase program authorized in April 2025, buying back 8,689,000 shares of common stock for approximately 33.6 billion yen via market trades on the Tokyo Stock Exchange between February 1 and February 28, 2026. Th...
Fujitsu Advances Share Buyback, Repurchasing Over 31 Million Shares Under Ongoing Program
Feb 3, 2026
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 ...
Fujitsu to Absorb SME and Regional Industry Solutions Business from Subsidiary
Jan 29, 2026
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 mid...
Fujitsu Lifts Dividend Forecast on Upgraded Earnings and Cash Flow Outlook
Jan 29, 2026
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 dividen...
Fujitsu Lifts FY2025 Profit Outlook as Portfolio Shift Drives Earnings Surge
Jan 29, 2026
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 t...
Fujitsu Details Progress on Share Buyback Program Through December 2025
Jan 7, 2026
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 o...
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.