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Fujitsu (FJTSY)
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Fujitsu (FJTSY) AI Stock Analysis

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FJTSY

Fujitsu

(OTC:FJTSY)

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Neutral 65 (OpenAI - 4o)
Rating:65Neutral
Price Target:
$26.00
â–²(2.85% Upside)
Fujitsu's overall stock score is driven by its strong financial performance, particularly its robust balance sheet and profitability. However, technical indicators suggest short-term bearish momentum, and the valuation is moderate with a low dividend yield. The absence of earnings call data and corporate events limits additional insights.

Fujitsu (FJTSY) vs. SPDR S&P 500 ETF (SPY)

Fujitsu Business Overview & Revenue Model

Company DescriptionFujitsu 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 cloud and hybrid IT services; assessment and consultative services; SAP landscape transformation services; new workplace; datacentre products comprising integrated systems, storage solutions, servers, network switches, and infrastructure management; workplace products including personal computers, workstations, thin clients, displays, and peripheral devices; consumption based IT services; installation and implementation services; and hardware, software, and infrastructure support services, as well as electronic devices, air conditioning products, and network solutions. It also provides cyber security solutions, including cyber security consulting, managed security servies, and security operation and advanced threat centers; internet of things, artificial intelligence platform and solutions; and software products comprising FUJITSU Software Infrastructure Manager and FUJITSU Software ServerView Suite. Further, the company offers electronic components, such as semiconductor packages and batteries. It serves automotive, manufacturing, retail, financial services, transport, telecommunications, healthcare, and energy and utilities industries; the public sectors; and services providers. Fujitsu Limited was founded in 1923 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyFujitsu generates revenue through multiple streams, primarily from its IT services and solutions segment, which includes consulting, system integration, and managed services. The company also earns income from its hardware products, including servers, storage systems, and personal computers. Significant revenue comes from long-term contracts with enterprise clients, government agencies, and partnerships with technology firms. Additionally, Fujitsu's investments in cutting-edge technologies, such as artificial intelligence and IoT, enhance its service offerings and market position, contributing to its overall earnings. Strategic collaborations and alliances with other technology providers further bolster its revenue potential by expanding its product and service capabilities.

Fujitsu Earnings Call Summary

Earnings Call Date:Jul 30, 2025
(Q2-2025)
|
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mix of positive and negative trends. While Service Solutions showed strong growth and profitability, challenges were evident in Hardware and Ubiquitous Solutions, as well as in international markets. Overall, the company's performance was aligned with its plan, with significant achievements in certain segments but notable challenges in others.
Q2-2025 Updates
Positive Updates
Service Solutions Growth
Service Solutions posted steady improvements with revenue for the first half at ¥1,017.5 billion, a 3.4% increase over the previous year. Adjusted operating profit increased by ¥25.2 billion, with the profit margin improving by 2.3 percentage points to 8.7%.
Record Profit Margins
Adjusted operating profit for the first half reached ¥79.5 billion, up ¥20.7 billion from the previous year, marking a 56.6% increase and a record for Fujitsu.
Uvance Revenue Surge
Revenue from Fujitsu Uvance grew by 31% year over year, with vertical areas nearly doubling their revenue. Uvance now represents 20% of total revenue in Service Solutions.
Modernization Business Expansion
Modernization business revenue for the first half was ¥82.8 billion, a 69% increase from the previous year, on track to meet the full-year target of ¥200 billion.
Improved Profitability
Profitability improved significantly, with a gross margin increase of 2.6 percentage points to 35.1%.
Negative Updates
Decline in Hardware Solutions
Revenue and profit for Hardware Solutions fell due to a pullback from last year's large-scale deals and the negative impact of the weak yen.
Ubiquitous Solutions Revenue Decline
Revenue for Ubiquitous Solutions was down 16.9% from the previous year, primarily due to exiting the business in Europe.
International Region Challenges
Revenue in international regions decreased by 4.4% year on year, impacted by the carveout of low-profit business in Germany.
Slower Demand Recovery in Device Solutions
Device Solutions saw lower than expected demand recovery, with results below plan despite a 3.3% year-over-year revenue increase.
Company Guidance
In the second quarter of fiscal year 2025, Fujitsu reported significant improvements in its financial metrics, particularly in the Service Solutions segment, which drove the company's growth. The segment posted a revenue of ¥1,017.5 billion, up 3.4% from the previous year, with a notable 7% increase in Japan. Adjusted operating profit in the segment rose by ¥25.2 billion to ¥88.7 billion, translating to an operating profit margin of 8.7%, an improvement of 2.3 percentage points. Fujitsu's total consolidated revenue was ¥1,696.6 billion, a 0.9% increase, despite declines in the Hardware and Ubiquitous Solutions segments. The company's overall adjusted operating profit increased by ¥20.7 billion to ¥79.5 billion, achieving a record 56.6% growth compared to the previous year's first half. Fujitsu's financial forecast for 2024 remains unchanged, with expectations of ¥3,760 billion in revenue and ¥303 billion in adjusted operating profit. The company is focusing on expanding its Fujitsu Uvance and modernization business to sustain growth and improve profitability.

Fujitsu Financial Statement Overview

Summary
Fujitsu demonstrates a solid financial position with strong operational efficiency and prudent financial management. While revenue growth has been inconsistent, the company maintains healthy profit margins and a robust balance sheet. Cash flow generation is strong, though there is potential to enhance cash retention.
Income Statement
75
Positive
Fujitsu's income statement shows a stable gross profit margin around 31-33% over the years, indicating consistent cost management. However, the net profit margin has slightly declined from 6.77% to 6.19% in the latest year, reflecting some pressure on net earnings. Revenue growth has been inconsistent, with a recent decline of 4.94%, which is a concern for future growth prospects. The EBIT and EBITDA margins have shown improvement, suggesting operational efficiency gains.
Balance Sheet
80
Positive
The balance sheet is strong with a low debt-to-equity ratio of 0.14, indicating prudent financial leverage. The return on equity has decreased slightly to 12.63% but remains healthy, showing effective use of equity capital. The equity ratio is stable, reflecting a solid capital structure with a good proportion of equity financing.
Cash Flow
70
Positive
Cash flow analysis reveals a significant improvement in free cash flow growth at 79.36%, indicating strong cash generation capabilities. The operating cash flow to net income ratio is stable, suggesting good cash conversion from earnings. However, the free cash flow to net income ratio is moderate at 47.05%, indicating room for improvement in cash retention.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue3.47T3.55T3.76T3.71T3.59T3.59T
Gross Profit1.17T1.17T1.16T1.14T1.12T1.08T
EBITDA430.14B445.80B370.73B457.57B446.38B471.68B
Net Income374.69B219.81B254.48B215.18B182.69B202.70B
Balance Sheet
Total Assets3.18T3.50T3.51T3.27T3.33T3.19T
Cash, Cash Equivalents and Short-Term Investments641.44B236.08B342.14B355.90B484.02B481.83B
Total Debt196.31B247.09B245.68B211.18B285.32B316.32B
Total Liabilities1.27T1.60T1.60T1.53T1.62T1.64T
Stockholders Equity1.89T1.74T1.75T1.59T1.59T1.45T
Cash Flow
Free Cash Flow198.91B142.98B113.38B52.23B105.10B179.18B
Operating Cash Flow356.96B303.88B309.22B220.33B248.35B307.95B
Investing Cash Flow129.05B-89.18B-157.24B-42.81B-59.27B-71.56B
Financing Cash Flow-322.87B-240.45B-181.49B-313.58B-193.69B-219.63B

Fujitsu Technical Analysis

Technical Analysis Sentiment
Positive
Last Price25.28
Price Trends
50DMA
24.57
Positive
100DMA
23.83
Positive
200DMA
22.06
Positive
Market Momentum
MACD
0.19
Negative
RSI
55.29
Neutral
STOCH
67.16
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FJTSY, the sentiment is Positive. The current price of 25.28 is above the 20-day moving average (MA) of 24.69, above the 50-day MA of 24.57, and above the 200-day MA of 22.06, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 55.29 is Neutral, neither overbought nor oversold. The STOCH value of 67.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FJTSY.

Fujitsu Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$154.50B20.5625.82%2.43%7.36%6.18%
77
Outperform
$267.82B34.0830.25%2.38%2.69%-31.73%
76
Outperform
$33.38B13.8116.69%1.81%6.34%12.16%
74
Outperform
$69.62B22.0629.15%2.90%4.62%1.06%
72
Outperform
$28.79B17.9216.39%3.05%-1.97%48.61%
65
Neutral
$44.98B17.3811.82%0.33%-8.93%45.37%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FJTSY
Fujitsu
25.28
5.55
28.13%
ACN
Accenture
249.81
-106.97
-29.98%
CTSH
Cognizant
68.03
-5.67
-7.69%
INFY
Infosys
17.53
-4.05
-18.77%
IBM
International Business Machines
285.00
72.61
34.19%
WIT
Wipro
2.71
-0.47
-14.78%
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.Date of analysis: Oct 04, 2025