A 26-point swing at the operating line
KDDI Corporation (TSE: 9433) published consolidated results for the three months to June 30, 2026 on August 7, 2026 under IFRS. Revenue rose 5.1% to ¥1,487,316 million, operating profit 21.1% to ¥314,248 million, pre-tax profit 20.2% to ¥308,466 million and profit attributable to owners of the parent 22.1% to ¥195,465 million, for earnings per share of ¥51.34 against ¥40.23.
The size of the turn is what stands out. A year earlier operating profit fell 4.7% and net profit fell 7.0%; this quarter both rose more than 20%. Revenue growth accelerated only modestly, from 3.0% to 5.1%, so the swing is an earnings story rather than a volume one.
KDDI also reports adjusted figures that strip out non-recurring items and one-off gains and losses from portfolio review. Adjusted operating profit was ¥314,262 million (+21.1%) — within ¥14 million of the reported line — and adjusted profit attributable to owners of the parent ¥193,442 million (+21.6%). When the two measures agree this closely, the quarter carried essentially no one-off distortion.
Three segments, not two
From this quarter KDDI has reorganised its reportable segments from two to three, replacing "Personal" and "Business" with Telecom Core, Personal Growth and Business Growth, on a management-approach basis reflecting how resources are allocated and performance judged. Prior-year figures have been restated on the new basis, so the comparisons below are like-for-like.
Telecom Core — 73% of group revenue — grew revenue 3.4% to ¥1,083,671 million on higher mobile revenue, and adjusted operating profit 19.5% to ¥210,706 million. It supplies communications and adjacent services to consumer and corporate customers alike.
Personal Growth lifted revenue 8.6% to ¥280,820 million and adjusted operating profit 9.3% to ¥55,491 million. Business Growth was the fastest on both lines, with revenue up 11.7% to ¥165,152 million and adjusted operating profit up 21.6% to ¥18,453 million, on cybersecurity and AI-integration work and data-centre revenue.
What is actually growing
The company names five drivers of the revenue increase: mobile revenue, financial-business revenue, device-related revenue, cybersecurity and AI integration, and data-centre revenue. Three of those five sit outside the traditional telecom business — which is the point of the new segment structure, and the reason Business Growth is the fastest-growing of the three.
One subsidiary, J:COM West Co., Ltd., left the scope of consolidation during the quarter.
Balance sheet and guidance
Total assets fell 1.1% from the March year-end to ¥18,854,231 million while equity attributable to owners of the parent rose 1.0% to ¥5,127,098 million, lifting the ratio to 27.2% from 26.6%. Comprehensive income was ¥229,827 million (+25.4%).
Guidance for FY3/2027 is unchanged, and KDDI guides on adjusted figures only: revenue of ¥6,410,000 million (+5.6%), adjusted operating profit of ¥1,210,000 million (+5.0%) and adjusted profit attributable to owners of the parent of ¥731,000 million (+2.7%), for adjusted earnings per share of ¥196.29. The quarter delivered 26.0% of the full-year adjusted operating-profit target in three of twelve months, so the unchanged guidance implies a materially slower remainder. The annual dividend forecast rises to ¥84.00 per share from ¥80.00, split ¥42.00 interim and ¥42.00 year-end.
The company opened its disclosure with condolences to those affected by the 2026 Kumamoto earthquake, saying the group continues to work on the region's recovery.
| Metric | Q1 FY3/2027 | Q1 FY3/2026 | Change |
|---|---|---|---|
| Revenue (¥ million) | 1,487,316 | 1,415,734 | +5.1% |
| Operating profit (¥ million) | 314,248 | 259,473 | +21.1% |
| Adjusted operating profit (¥ million) | 314,262 | 259,473 | +21.1% |
| Pre-tax profit (¥ million) | 308,466 | 256,704 | +20.2% |
| Net profit attrib. to owners of parent (¥ million) | 195,465 | 160,069 | +22.1% |
| Adjusted profit attributable to owners of the parent | 193,442 | 159,094 | +21.6% |
| Comprehensive income (¥ million) | 229,827 | 183,290 | +25.4% |
| EPS (¥) | 51.34 | 40.23 | +27.6% |
| Telecom Core — revenue (¥ million) | 1,083,671 | 1,047,874 | +3.4% |
| Telecom Core — adjusted operating profit (¥ million) | 210,706 | 176,317 | +19.5% |
| Personal Growth — revenue (¥ million) | 280,820 | 258,683 | +8.6% |
| Personal Growth — adjusted operating profit (¥ million) | 55,491 | 50,773 | +9.3% |
| Business Growth — revenue (¥ million) | 165,152 | 147,810 | +11.7% |
| Business Growth — adjusted operating profit (¥ million) | 18,453 | 15,180 | +21.6% |
| Total assets (¥ million) | 18,854,231 | 19,063,364 | −1.1% |
| Equity attrib. to owners of parent (¥ million) | 5,127,098 | 5,076,738 | +1.0% |
| Equity ratio | 27.2% | 26.6% | +0.6 pt |
| FY3/2027 guidance — revenue (¥ million) | 6,410,000 | — | +5.6% |
| FY3/2027 guidance — adjusted operating profit (¥ million) | 1,210,000 | — | +5.0% |
| FY3/2027 guidance — adjusted profit attributable to owners of the parent | 731,000 | — | +2.7% |
| FY3/2027 guidance — EPS (¥) | 196.29 | — | n.m. |
| Annual dividend per share (¥) | 84.00 | 80.00 | +5.0% |
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.