Fujitsu Limited (TSE: 6702), Japan's largest IT services company, reported consolidated results for the first quarter of the fiscal year ending March 2027 — the three months from April 1 to June 30, 2026 — under IFRS. Revenue rose 3.9% to ¥779,377 million, operating profit jumped 56.9% to ¥52,534 million and profit before tax climbed 60.4% to ¥59,445 million. Profit attributable to owners of the parent came in at ¥40,134 million, down 76.6%, with basic earnings per share of ¥23.13 against ¥96.64 a year earlier.
A base effect, not a downturn
The headline collapse in net profit is a comparison problem rather than an operating one. The year-earlier quarter carried ¥141,982 million of positive adjustment items — one-off gains booked on business restructuring and M&A — while this quarter's adjustment items were a small negative: −¥2,377 million at the operating-profit level and −¥1,753 million at the net level. Strip them out and the underlying picture reverses: adjusted operating profit rose 56.4% to ¥54,911 million from ¥35,119 million, and adjusted profit attributable to owners rose 40.7% to ¥41,887 million from ¥29,779 million. Adjusted basic EPS was ¥24.15 against ¥16.75, with adjusted diluted EPS of ¥24.07.
The bridge from adjusted to reported operating profit this quarter is short: ¥54,911 million of adjusted operating profit, plus ¥3 million from business restructuring and transformation, less ¥2,380 million of M&A-related costs, gives operating profit of ¥52,534 million. Below the operating line, financial income of ¥7,138 million, financial costs of ¥1,822 million and ¥1,595 million of profit from equity-method investees lifted pre-tax profit to ¥59,445 million. Comprehensive income was ¥65,739 million, down 62.7% on the same base effect.
Service Solutions does the heavy lifting
Service Solutions — the systems-integration, managed-services and digital-transformation business at the centre of Fujitsu's strategy — generated external revenue of ¥545,936 million, up from ¥507,605 million, and adjusted operating profit of ¥62,801 million against ¥47,842 million, a gain of roughly 31%. Including intersegment sales the segment turned over ¥548,971 million. On its own it earned more than the entire group's adjusted operating profit, absorbing weakness in the two hardware-facing segments.
Hardware swings to a loss; PC revenue drops 28%
Hardware Solutions, spanning servers, storage and network products, edged external revenue up to ¥192,354 million from ¥186,941 million (¥211,204 million including intersegment sales) but swung to an adjusted operating loss of ¥3,743 million from a ¥1,337 million profit a year earlier. Ubiquitous Solutions, the client-computing arm, saw external revenue fall 28% to ¥34,409 million from ¥47,960 million, with adjusted operating profit almost halved to ¥4,466 million from ¥8,241 million. The offsetting positive came from the centre: the eliminations-and-corporate line's adjusted operating drag narrowed sharply to ¥8,613 million from ¥22,301 million.
Balance sheet, dividend and the BrainPad deal
Total assets stood at ¥3,308,536 million at June 30, 2026, down from ¥3,416,621 million at the March year-end, while total equity edged up to ¥2,054,586 million and equity attributable to owners to ¥2,035,328 million. The owners' equity ratio improved to 61.5% from 59.4%. The weighted-average share count fell to 1,734.8 million from 1,777.3 million on buybacks; 1,739,778,265 shares are issued, of which 5,000,980 are held in treasury. Fujitsu plans an annual dividend of ¥55 for FY3/2027 — ¥25 at the interim and ¥30 at the year-end — up from the ¥50 paid for FY3/2026. The quarterly notes also disclose the acquisition of BrainPad Inc., a Japanese data-science and AI consulting firm.
Full-year guidance left untouched
Management, led by President and Representative Director Takahito Tokita, kept its FY3/2027 forecast unchanged: revenue of ¥3,510,000 million (+0.2%), operating profit of ¥415,000 million (+19.1%) and profit attributable to owners of ¥310,000 million (−31.0%, again reflecting the one-off-inflated prior year), with EPS of ¥182.43. On an adjusted basis the targets are adjusted operating profit of ¥425,000 million (+8.8%) and adjusted profit of ¥320,000 million (+7.3%), an adjusted EPS of ¥188.31, with adjustment items assumed at −¥10,000 million for the full year. First-quarter adjusted operating profit of ¥54.91 billion represents 12.9% of that ¥425 billion target — a normal starting point for a company whose earnings are heavily weighted to the March quarter.
| Metric | Q1 FY3/2027 | Q1 FY3/2026 | YoY |
|---|---|---|---|
| Revenue (¥ billion) | 779.38 | 749.86 | +3.9% |
| Operating profit (¥ billion) | 52.53 | 33.49 | +56.9% |
| Adjusted operating profit (¥ billion) | 54.91 | 35.12 | +56.4% |
| Profit before tax (¥ billion) | 59.45 | 37.06 | +60.4% |
| Profit attrib. to owners (¥ billion) | 40.13 | 171.76 | -76.6% |
| Adjusted profit attrib. to owners (¥ billion) | 41.89 | 29.78 | +40.7% |
| Basic EPS (¥) | 23.13 | 96.64 | -76.1% |
| Owners' equity ratio (%, Jun 30 vs Mar 31, 2026) | 61.5 | 59.4 | +2.1 pt |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.