Hitachi (HTHIY) AI Stock Analysis

Company Guidance

For fiscal year 2026, Hitachi raised its revenue forecast by JPY 300 billion and adjusted EBITA by JPY 40 billion, while revising full free cash flow and ROIC upward; DSS revenue was raised by JPY 70 billion, with full year growth of 8% in fiscal year 2026, 2 points higher than the previous forecast, Energy expects full-year growth of 21% and adjusted EBITA was raised by JPY 33 billion, with profit margin expected to improve by 15%, and CI revenue and adjusted EBITA were raised by JPY 50 billion and JPY 5 billion, respectively. Consolidated revenues are expected to grow 13% year-on-year, or 11% excluding special factors, with adjusted EBITA margin focused at 13% or 13.6% excluding special factors, expected to improve by 120 basis points for the full year; net income is expected to rise by approximately JPY 120 billion year-on-year, core free cash flow to increase by approximately JPY 90 billion excluding the effect of last year's large advance payments, and cash conversion ratio to remain at 100%. HMAX revenue is planned to rise by 25% and profit margin by 17%, with a progress rate of 47% against the FY 2026 four-year forecast of JPY 510 billion; SI productivity enhancement is targeted at 20% this fiscal year and 30% in FY 2027, while Hitachi Digital sees higher double-digit growth opportunities in the coming years across seven verticals, four horizontals, 200 top customers contributing today to about 80% of revenues, and 11 ecosystem partners.