Nippon Telegraph and Telephone (9432) AI Stock Analysis

• Market Cap: ¥13.07T
• Dividend Yield: 3.36%
• Average Volume (3M): 163.51M
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.43
• Revenue Growth: 2.10%
• EPS Growth: -9.29%
• Country: JP
• Employees: 338,467
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 4.03
• Shares Outstanding: 90,550,310,000
• 10 Day Avg. Volume: 184,869,517
• 30 Day Avg. Volume: 163,509,546
• PEG Ratio: -0.58
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.88
• P/FCF Ratio: 52.21
• 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: ¥160.00
• Price Target Upside: 4.37% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 12.56
• Revenue Forecast (FY): ¥14.18T

• Rating: 56 Neutral
• Price Target: ¥157.00 ▲(2.41% Upside)
• Action: Downgraded Date: 02/07/26
• Date: Action: Downgraded 02/07/26

The score is held back mainly by weakening cash flow (TTM free cash flow turning slightly negative) and increased leverage, plus bearish technical momentum below key moving averages. These risks are partially offset by a relatively attractive valuation (modest P/E and solid dividend yield) and a still-profitable core business.

Positive Factors

Diversified recurring-revenue model

NTT's business spans mobile, fixed broadband, enterprise ICT, data centers and cloud with substantial subscription and multi-year contract revenue. This diversified, recurring-revenue mix creates durable cash flow backbones, customer stickiness, and lower volatile sales exposure over months to years.

Large scale and capitalization

A large asset base and meaningful equity position provide long-term strategic flexibility: funding network upgrades, data center expansion and M&A without immediate reliance on external markets. Scale also yields procurement and pricing advantages and higher barriers to entry.

Stable, profitable core operations

NTT exhibits steady low-single-digit revenue growth and still-positive margins, reflecting resilient demand for connectivity and enterprise services. Consistent profitability supports reinvestment, dividend capacity and long-term service development despite cyclical pressures.

Negative Factors

Rising leverage

The step-up in leverage meaningfully increases financial risk and reduces balance-sheet flexibility. Higher debt amplifies interest-cost sensitivity and limits capacity for opportunistic investments or defensive spending if earnings weaken or rates rise, pressuring long-term resilience.

Weakened free cash flow

A shift to slightly negative TTM free cash flow signals less internal funding for capex, dividends or debt reduction. If persistent, cash-generation weakness constrains strategic options, forces reliance on external financing, and raises the risk of deferred investment or payout cuts.

Margin pressure and profitability softness

Eroding gross and operating margins indicate cost or mix pressures that can persist absent pricing power or efficiency gains. Continued margin compression would reduce return on invested capital and limit cash available for growth or debt reduction over multiple quarters.

Nippon Telegraph and Telephone Business Overview & Revenue Model

Company Description

NTT, Inc. operates as a telecommunications company in Japan and internationally. It operates through Integrated ICT Business, Regional Communications Business, Global Solutions Business, and Others segments. The Integrated ICT Business segment offers mobile phone, domestic inter-prefectural communications, international communications, solutions, and system development and related services. Its Regional Communications Business segment provides intra-prefectural communications and related ancillary services. The Global Solutions Business segment offers system integration, network system, cloud, global center, and related services, as well as consulting, managed, and system and software development services. Its Others segment engages in the real estate and construction, energy, and other businesses. The company was formerly known as Nippon Telegraph and Telephone Corporation and changed its name to NTT, Inc. in July 2025. NTT, Inc. was founded in 1952 and is headquartered in Tokyo, Japan.

How the Company Makes Money

NTT generates revenue primarily through its diverse telecommunications services, including fixed-line and mobile voice services, broadband internet, and data communications. Key revenue streams include subscription fees from residential and business clients, mobile service charges, and enterprise solutions. The company also earns income from its IT services through NTT Data, which provides consulting, system integration, and managed services. Significant partnerships with global technology firms and its investments in advanced technologies such as 5G networks and cloud computing further contribute to its earnings by expanding service offerings and enhancing operational efficiency.

Nippon Telegraph and Telephone Financial Statement Overview

Summary

Stable, profitable core business (income statement score 72) is offset by rising financial risk from higher leverage (balance sheet score 58) and a notable TTM deterioration in cash generation with slightly negative free cash flow (cash flow score 45).

Income Statement

Revenue is generally stable-to-slightly growing (annual growth low-single-digits; TTM (Trailing-Twelve-Months) shows a higher growth figure), but profitability has softened versus prior years. Gross margin and operating margin have trended down from the 2022–2024 period, and net margin in TTM (Trailing-Twelve-Months) is lower than the recent annual average, indicating some pressure from costs, pricing, or mix. Offsetting this, margins remain healthy for a large telecom operator and earnings are still solidly positive.

Balance Sheet

Leverage has increased meaningfully: debt-to-equity rose from ~1.0–1.1 in recent annual reports to ~1.9 in TTM (Trailing-Twelve-Months). Equity remains sizable, and return on equity is still respectable (low-teens in TTM (Trailing-Twelve-Months)), but the step-up in debt raises financial risk and reduces flexibility if rates rise or earnings weaken. Assets are large and the company remains well-capitalized, yet the trajectory of leverage is the key concern.

Cash Flow

Operating cash generation is positive and relatively steady, but cash conversion has deteriorated in TTM (Trailing-Twelve-Months). Free cash flow turned slightly negative in TTM (Trailing-Twelve-Months) after being positive in prior years, and free cash flow relative to net income flipped negative—suggesting higher investment spend, working-capital drag, or other cash uses. While prior annual periods showed reasonable free cash flow and decent cash backing of profits, the latest TTM (Trailing-Twelve-Months) weakness is a notable red flag.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	14.08T	13.70T	13.37T	13.14T	12.16T	11.94T
Gross Profit	2.14T	2.39T	2.63T	2.50T	2.46T	2.36T
EBITDA	3.55T	3.42T	3.70T	3.46T	3.39T	3.20T
Net Income	1.08T	1.00T	1.28T	1.21T	1.18T	916.18B
Balance Sheet
Total Assets	46.83T	30.93T	30.43T	25.76T	23.86T	22.97T
Cash, Cash Equivalents and Short-Term Investments	2.82T	1.61T	1.05T	859.65B	888.65B	965.09B
Total Debt	18.23T	11.29T	10.71T	9.15T	8.21T	8.37T
Total Liabilities	36.85T	19.59T	19.54T	16.41T	14.84T	14.76T
Stockholders Equity	9.51T	10.22T	9.84T	8.56T	8.28T	7.56T
Cash Flow
Free Cash Flow	-14.65B	231.74B	290.15B	409.13B	1.25T	1.21T
Operating Cash Flow	2.24T	2.36T	2.37T	2.26T	3.01T	3.01T
Investing Cash Flow	-3.33T	-2.01T	-1.99T	-1.74T	-1.70T	-1.42T
Financing Cash Flow	2.70T	-328.64B	-234.45B	-590.20B	-1.44T	-1.69T

Nippon Telegraph and Telephone Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 153.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9432, the sentiment is Positive. The current price of 153.3 is above the 20-day moving average (MA) of 153.14, below the 50-day MA of 155.77, and below the 200-day MA of 154.41, indicating a neutral trend. The MACD of -1.10 indicates Negative momentum. The RSI at 48.49 is Neutral, neither overbought nor oversold. The STOCH value of 35.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9432.

Nippon Telegraph and Telephone Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9436	79 Outperform	¥315.82B	24.08	13.42%	2.27%	5.10%	12.48%
9433	76 Outperform	¥10.10T	15.13	13.75%	2.85%	3.34%	20.36%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3774	60 Neutral	¥410.56B	17.99	15.67%	1.31%	12.48%	18.38%
9434	60 Neutral	¥10.18T	18.01	―	3.99%	7.79%	5.53%
9432	56 Neutral	¥13.07T	11.76	10.59%	3.36%	2.10%	-9.29%
9449	56 Neutral	¥312.57B	19.02	17.97%	1.36%	4.75%	17.02%

Nippon Telegraph and Telephone Corporate Events

NTT Cuts Full-Year Profit Forecast on Intensifying Competition and Weaker Global Conditions

NTT has revised downward its consolidated financial forecasts for the fiscal year ending March 31, 2026, trimming expected operating revenue to ¥14.164 trillion and cutting projected operating profit, profit before taxes and profit attributable to NTT, resulting in lower basic earnings per share compared with its previous guidance. The company cited weaker profitability in its Integrated ICT Business Segment, where intensified and prolonged competition is driving up costs to strengthen its customer base, as well as reduced revenue and profit in its Global Solutions Business Segment due to adverse market conditions and exchange rate fluctuations that offset gains from data-center transfers; despite the softer outlook, NTT will maintain its dividend forecast, signaling a commitment to shareholder returns even as near-term earnings come under pressure.

The most recent analyst rating on (JP:9432) stock is a Buy with a Yen174.00 price target. To see the full list of analyst forecasts on Nippon Telegraph and Telephone stock, see the JP:9432 Stock Forecast page.

NTT Issues Cautionary Notice With Nine-Month Financial Results Translation

NTT released an English translation of its financial results for the nine months ended December 31, 2025, emphasizing that the original Japanese document remains the authoritative version. The company highlighted that any projections or forward-looking figures regarding its future performance are based on management assumptions about economic conditions, industry trends, competition, regulation, and other risks, and that actual results could differ materially, underscoring the inherent uncertainty and risk factors relevant for investors and other stakeholders.

The most recent analyst rating on (JP:9432) stock is a Buy with a Yen174.00 price target. To see the full list of analyst forecasts on Nippon Telegraph and Telephone stock, see the JP:9432 Stock Forecast page.

NTT Posts Higher Nine-Month Earnings as Investment and Leverage Rise

NTT has released supplementary consolidated financial data for the nine months ended 31 December 2025, showing steady growth in operating revenues and operating profit versus the prior year, alongside a higher consolidated EBITDA and increased depreciation reflecting continued capital-intensive network and data-center operations. While operating cash flow remained solid, the period featured large swings in investing and financing cash flows, including higher interest-bearing liabilities largely tied to its finance and data-center businesses, underscoring NTT’s ongoing balance sheet expansion as it invests in infrastructure and related financial services. The updated full-year forecasts indicate management’s expectation of further increases in revenues, EBITDA and operating profit compared with the previous fiscal year, suggesting confidence in the resilience of its core telecom and ICT operations despite heavier leverage and continued capex, a trend that will be closely watched by creditors, shareholders and customers reliant on its network and data capabilities.

The most recent analyst rating on (JP:9432) stock is a Buy with a Yen174.00 price target. To see the full list of analyst forecasts on Nippon Telegraph and Telephone stock, see the JP:9432 Stock Forecast page.

NTT Posts Higher Nine-Month Earnings, Lifts Dividend and Expands into Digital Banking

NTT reported solid results for the nine months ended 31 December 2025, with operating revenues rising 3.7% year on year to ¥10.42 trillion and operating profit up 4.1% to ¥1.46 trillion, while profit attributable to the company climbed 8.9% to ¥926.1 billion, lifting basic earnings per share to ¥11.23. Although the equity ratio declined following a balance sheet expansion, NTT maintained its progressive dividend stance, nudging interim and full-year dividend forecasts higher to ¥2.65 and ¥5.30 per share respectively, and revised its full-year consolidated forecast, signaling modest revenue and profit growth alongside a minor anticipated decline in full-year net profit. The group also broadened its financial services footprint by adding SBI Sumishin Net Bank, Ltd. to the scope of consolidation, underscoring ongoing portfolio diversification and potential synergies between its telecoms platform and digital financial services offerings.

The most recent analyst rating on (JP:9432) stock is a Buy with a Yen174.00 price target. To see the full list of analyst forecasts on Nippon Telegraph and Telephone stock, see the JP:9432 Stock Forecast page.

NTT Reports Progress on Large-Scale Share Buyback Program

NTT, Inc. has disclosed the latest progress of its ongoing share buyback program, reporting that it repurchased 154,892,700 shares of its common stock on the Tokyo Stock Exchange between January 5 and January 30, 2026, for a total of approximately 24.3 billion yen. These purchases form part of a broader board-approved authorization, under which NTT is permitted to buy back up to 1.5 billion shares or 200 billion yen of stock between May 2025 and March 2026; as of January 30, 2026, the company has already repurchased about 1.14 billion shares for 178.1 billion yen, signaling continued capital return to shareholders and an active effort to manage its capital structure and shareholder value.

The most recent analyst rating on (JP:9432) stock is a Buy with a Yen174.00 price target. To see the full list of analyst forecasts on Nippon Telegraph and Telephone stock, see the JP:9432 Stock Forecast page.

NTT Updates Progress on Large-Scale Share Buyback Program

NTT, Inc. disclosed the latest status of its ongoing share repurchase program, announcing that it bought back 153,990,500 shares of common stock on the Tokyo Stock Exchange between December 1 and December 23, 2025, for a total of approximately ¥23.8 billion. These purchases form part of a larger board-approved buyback authorization, under which NTT is permitted to repurchase up to 1.5 billion shares or ¥200 billion by March 31, 2026; as of December 31, 2025, the company had already acquired 989,292,600 shares for about ¥153.8 billion, underscoring a significant capital return effort that may support earnings per share and signal management confidence in the company’s long-term value to investors.

The most recent analyst rating on (JP:9432) stock is a Buy with a Yen174.00 price target. To see the full list of analyst forecasts on Nippon Telegraph and Telephone stock, see the JP:9432 Stock Forecast page.

NTT Announces Progress in Stock Repurchase Program

NTT, Inc. announced the status of its stock repurchase program, revealing that it repurchased 284,454,800 shares of its common stock for a total of 43,378,171,960 yen between November 4 and November 28, 2025. This move is part of a broader strategy approved by the Board of Directors to repurchase up to 1.5 billion shares by March 31, 2026, with the aim to enhance shareholder value and optimize capital structure.

The most recent analyst rating on (JP:9432) stock is a Buy with a Yen184.00 price target. To see the full list of analyst forecasts on Nippon Telegraph and Telephone stock, see the JP:9432 Stock Forecast page.