Fujikura Ltd. (TSE: 5803), one of Japan's largest cable makers and a leading global supplier of optical fibre and datacentre connectivity hardware, reported consolidated results for the first quarter of the year ending March 2027 — the three months from April 1 to June 30, 2026 — under Japanese GAAP. Revenue rose 50.1% to ¥402,009 million, operating profit jumped 155.1% to ¥104,828 million, ordinary profit climbed 166.8% to ¥111,456 million, and net profit attributable to owners of the parent rose 156.8% to ¥80,434 million. Basic earnings per share came in at ¥48.58 against ¥18.92 a year earlier, restated for the 1-for-6 stock split effective April 1, 2026. Comprehensive income rose 190.5% to ¥86,296 million.
Profitability improved far faster than the top line. Gross profit roughly doubled to ¥148,960 million from ¥73,384 million, lifting the gross margin to 37.1% from 27.4%, while selling, general and administrative expenses grew more slowly to ¥44,133 million from ¥32,298 million. The operating margin widened to 26.1% from 15.3% a year earlier. Pre-tax profit was ¥111,370 million and the tax charge ¥29,157 million, an effective rate of 26.2%.
Datacentre orders reshape the business mix
The result is almost entirely an Information & Telecommunications story. Segment revenue surged 83.9% to ¥264,402 million and segment profit leapt 188.3% to ¥97,959 million, a segment operating margin of 37.0%. The company attributes the growth to expanding datacentre demand, led by optical component products, together with a large bulk order of optical components for a new datacentre project outside the United States. The segment now generates 65.8% of group revenue and 93.4% of aggregate segment profit — a concentration that leaves group earnings closely tied to the AI-driven datacentre build-out cycle.
Other segments: a mixed picture
Electronics was the weak spot, with revenue down 10.3% to ¥35,347 million on a shift in the product mix for smartphone components, and segment profit down 73.5% to ¥444 million as higher material costs bit. Automotive revenue rose 24.7% to ¥55,026 million on increased European output, though segment profit was broadly flat at ¥1,164 million (from ¥1,361 million). Energy revenue advanced 23.1% to ¥43,607 million and segment profit rose 59.2% to ¥5,274 million on higher-margin project wins and improved selling prices. Real Estate, essentially rental income from the Fukagawa Gatharia complex built on the site of the company's former Fukagawa plant, edged up 0.6% to ¥2,800 million with profit of ¥1,316 million. New businesses grouped under "Other" contributed ¥829 million of revenue and a ¥1,330 million loss.
Growth is coming from North America and Asia
Geographically, North America remained the largest market at ¥180,321 million of revenue, up from ¥136,378 million, while Asia excluding Japan nearly tripled to ¥90,115 million from ¥31,863 million. Europe rose to ¥41,690 million from ¥31,179 million and Japan to ¥66,013 million from ¥56,178 million, leaving overseas markets at 83.6% of group revenue. The Asian jump is concentrated in Information & Telecommunications, where revenue from Asia ex-Japan rose to ¥68,010 million from just ¥10,521 million — consistent with the large non-U.S. datacentre order the company flagged. North American Information & Telecommunications revenue also grew, to ¥156,438 million from ¥109,696 million.
Balance sheet swells on working capital
Total assets rose ¥101,201 million to ¥1,070,655 million over the quarter, driven by the working capital the demand surge requires: trade receivables and contract assets climbed to ¥314,525 million from ¥252,623 million and inventories to ¥209,685 million from ¥183,799 million, with cash and deposits of ¥192,323 million. Liabilities rose ¥52,817 million to ¥429,078 million, mainly on higher interest-bearing debt, while net assets rose ¥48,384 million to ¥641,577 million. Shareholders' equity stood at ¥608,598 million and the equity ratio eased slightly to 56.8% from 57.8%. Fujikura also holds an undrawn three-year commitment line of ¥60,000 million with five banks. Depreciation for the quarter was ¥6,446 million and research and development spending ¥4,800 million.
Guidance raised sharply for both the half and the year
Fujikura revised upward the forecast it had published on June 18, 2026, announcing the new numbers alongside these results. For the first half it now guides revenue of ¥821,000 million (+46.9%), operating profit of ¥198,000 million (+119.6%), ordinary profit of ¥209,000 million (+127.9%) and net profit of ¥149,000 million (+121.9%), with EPS of ¥89.98. For the full year it guides revenue of ¥1,755,000 million (+48.4%), operating profit of ¥432,000 million (+128.9%), ordinary profit of ¥453,000 million (+127.1%) and net profit of ¥326,000 million (+107.4%), with EPS of ¥196.88. The first quarter therefore represents 22.9% of guided full-year revenue and 24.3% of guided operating profit, implying second-quarter revenue of roughly ¥418,991 million and operating profit of about ¥93,172 million.
Dividend, stock split and a China joint-venture exit
Fujikura executed a 1-for-6 stock split on April 1, 2026, taking shares issued to 1,775,180,526. For FY3/2026 it paid ¥225.00 per share on a pre-split basis (¥95.00 interim plus ¥130.00 year-end); for FY3/2027 it maintains its forecast of ¥19.00 interim and ¥19.00 year-end, or ¥38.00 on the post-split basis — equivalent to ¥228.00 pre-split and a payout of about 19.3% of guided earnings.
Two notes accompany the accounts. Fujikura changed its hedge accounting policy from the start of the quarter, moving from the allocation method for qualifying foreign exchange forwards to measuring them at fair value at period end; the change was not applied retrospectively because the effect on prior periods was immaterial. Separately, the board resolved on July 10, 2026 to sell the entire 60% interest held by Fujikura and its wholly owned subsidiary Fujikura (China) in Fujikura Fiberhome Optoelectric Materials Technology Co., Ltd. — an optical fibre preform developer and manufacturer — to Fiberhome Telecommunication Technologies Co., Ltd. for RMB 500.24 million. The sale is expected to close in late September 2026 and the gain or loss is described as immaterial.
| Metric | Q1 FY3/2027 | Q1 FY3/2026 | YoY |
|---|---|---|---|
| Revenue (¥ billion) | 402.01 | 267.91 | +50.1% |
| Operating profit (¥ billion) | 104.83 | 41.09 | +155.1% |
| Operating margin | 26.1% | 15.3% | +10.8 pt |
| Ordinary profit (¥ billion) | 111.46 | 41.78 | +166.8% |
| Net profit attrib. to owners (¥ billion) | 80.43 | 31.32 | +156.8% |
| Basic EPS (¥) | 48.58 | 18.92 | +156.8% |
| Info & Telecom revenue (¥ billion) | 264.40 | 143.81 | +83.9% |
| Info & Telecom segment profit (¥ billion) | 97.96 | 33.98 | +188.3% |
| FY3/2027 revenue guidance (¥ billion) | 1,755.00 | — | +48.4% |
| FY3/2027 operating profit guidance (¥ billion) | 432.00 | — | +128.9% |
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.