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Fujitsu
(6702)
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Rating:73Outperform
Price Target:
¥4,739.00
▲(27.53% Upside)
Action:Reiterated
Date:08/04/26
The score is driven primarily by strong financial performance (improving margins, low leverage, and materially higher free cash flow). Technicals add support with positive momentum and price above key moving averages, though near-overbought Stochastic signals temper the outlook. Valuation is a modest drag given a ~20x P/E and a low dividend yield.
Positive Factors
Conservative balance sheet
Very low leverage and a growing equity base give Fujitsu financial resilience and flexibility. This supports continued investment in digital transformation, cloud, and cybersecurity while reducing balance-sheet pressure during slower demand or uneven project timing.
Negative Factors
Limited revenue growth
Stable rather than rapidly growing revenue suggests that Fujitsu’s improved profitability is not currently supported by strong top-line expansion. Without sustained growth in enterprise and public-sector demand, future earnings progress may depend more heavily on efficiency gains and mix improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low leverage and a growing equity base give Fujitsu financial resilience and flexibility. This supports continued investment in digital transformation, cloud, and cybersecurity while reducing balance-sheet pressure during slower demand or uneven project timing.
Read all positive factors
Fujitsu (6702) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥7.37T
Dividend Yield1.41%
Average Volume (3M)6.21M
Price to Earnings (P/E)23.1
Beta (1Y)0.80
Revenue Growth1.80%
EPS Growth-13.55%
CountryJP
Employees99,203
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)181.34
Shares Outstanding1,739,778,300
10 Day Avg. Volume6,718,340
30 Day Avg. Volume6,212,793
Financial Highlights & Ratios
PEG Ratio0.11
Price to Book (P/B)2.76
Price to Sales (P/S)1.60
P/FCF Ratio24.41
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥4,644.00Price Target Upside24.97% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)178.88
Revenue Forecast (FY)¥3.55T
Fujitsu Business Overview & Revenue Model
Company Description
Fujitsu Limited provides digital services in Japan, Europe, the Americas, the Asia Pacific, East Asia, and internationally. The company operates through three segments: Service Solutions, Hardware Solutions, and Ubiquitous Solutions. The company o...
How the Company Makes Money
Fujitsu primarily makes money by selling IT services and solutions, with revenue typically generated through a mix of project-based fees and recurring service contracts. Key revenue streams include: (1) Systems integration and project delivery: Fu...
Fujitsu Earnings Call Summary
Earnings Call Date:Oct 30, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook for Fujitsu, with significant growth in the Service Solutions and Fujitsu Uvance segments, contributing to record operating profits. However, challenges remain in the Hardware Solutions and Ubiquitous Solutions segments, as well as international revenue declines.Positive Updates
Service Solutions Growth
Service Solutions segment posted steady improvements with revenue of ¥1,017.5 billion, an increase of 3.4% over the last year's first half. Adjusted operating profit for Service Solutions was ¥88.7 billion, an increase of ¥25.2 billion compared to the first half of fiscal ‘23, with an operating profit margin improved by 2.3% to 8.7%.
Negative Updates
Hardware Solutions Decline
Hardware Solutions revenue was ¥456.6 billion, down 4.4% from the previous year, with an adjusted operating profit of ¥3.1 billion, representing a deterioration of ¥14.3 billion.
Read all updates
Q2-2025 Updates
Positive
Negative
Service Solutions Growth
Service Solutions segment posted steady improvements with revenue of ¥1,017.5 billion, an increase of 3.4% over the last year's first half. Adjusted operating profit for Service Solutions was ¥88.7 billion, an increase of ¥25.2 billion compared to the first half of fiscal ‘23, with an operating profit margin improved by 2.3% to 8.7%.
Read all positive updates
Company Guidance
In the second quarter of fiscal year 2025, Fujitsu reported robust financial performance, particularly in its Service Solutions segment, which saw a revenue increase of 3.4% to ¥1,017.5 billion, and an adjusted operating profit rise by ¥25.2 billion to ¥88.7 billion, with a profit margin improvement of 2.3 percentage points to 8.7%. Despite a revenue decline in Hardware Solutions and Ubiquitous Solutions, the company's total consolidated revenue grew by 0.9% to ¥1,696.6 billion, with adjusted operating profit reaching ¥79.5 billion, a 56.6% increase year-on-year. The company’s strategic focus on digital transformation in Japan led to a 7% revenue increase domestically, although international revenue fell by 4% due to the carveout of low-profit businesses. Fujitsu Uvance, the company's growth driver, reported a 31% revenue increase to ¥200.7 million, highlighting its expansion in the modernization business and progress towards its fiscal 2025 revenue target of ¥700 billion. Additionally, Fujitsu's financial forecast for 2024 remains unchanged, anticipating revenues of ¥3,760 billion and an adjusted operating profit of ¥303 billion, underscoring the company's commitment to its growth and profitability strategies.Fujitsu Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
72
Positive
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.53T | 3.50T | 3.55T | 3.76T | 3.71T | 3.59T |
| Gross Profit | 1.26T | 1.25T | 1.17T | 1.16T | 1.14T | 1.12T |
| EBITDA | 476.92B | 502.31B | 399.83B | 440.94B | 457.57B | 446.38B |
| Net Income | 317.78B | 449.41B | 219.81B | 254.48B | 215.18B | 182.69B |
Balance Sheet | ||||||
| Total Assets | 3.31T | 3.40T | 3.50T | 3.51T | 3.27T | 3.33T |
| Cash, Cash Equivalents and Short-Term Investments | 597.93B | 450.37B | 236.08B | 342.14B | 355.90B | 484.02B |
| Total Debt | 133.70B | 133.09B | 247.09B | 245.68B | 211.18B | 285.32B |
| Total Liabilities | 1.25T | 1.36T | 1.60T | 1.60T | 1.53T | 1.62T |
| Stockholders Equity | 2.04T | 2.02T | 1.74T | 1.75T | 1.59T | 1.59T |
Cash Flow | ||||||
| Free Cash Flow | 230.08B | 229.15B | 142.98B | 113.38B | 52.23B | 105.10B |
| Operating Cash Flow | 337.96B | 338.13B | 303.88B | 309.22B | 220.33B | 248.35B |
| Investing Cash Flow | -46.35B | 140.80B | -114.16B | -159.91B | -42.81B | -59.27B |
| Financing Cash Flow | -358.65B | -376.06B | -215.47B | -178.82B | -313.58B | -193.69B |
Fujitsu Technical Analysis
Positive
3716.00
Price Trends
3811.18
Positive
3565.36
Positive
3653.85
Positive
Market Momentum
105.42
Negative
71.55
Negative
90.56
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6702, the sentiment is Positive. The current price of 3716 is below the 20-day moving average (MA) of 3974.63, below the 50-day MA of 3811.18, and above the 200-day MA of 3653.85, indicating a bullish trend. The MACD of 105.42 indicates Negative momentum. The RSI at 71.55 is Negative, neither overbought nor oversold. The STOCH value of 90.56 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6702.
Fujitsu Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ¥7.11T | 22.76 | 14.20% | 0.78% | 6.90% | 50.30% | |
73 Outperform | ¥7.37T | 23.15 | 15.82% | 1.31% | 1.80% | -13.55% | |
72 Outperform | ¥880.15B | 19.18 | ― | 2.14% | 4.90% | -2.39% | |
71 Outperform | ¥720.99B | 23.49 | 11.35% | 2.20% | 13.99% | 15.49% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | ¥3.08T | 173.10 | 4.14% | 1.49% | 7.37% | -80.70% |
* Technology Sector Average
JP:6702
Fujitsu
4,250.00
459.30
12.12%
JP:6701
NEC
5,233.00
470.53
9.88%
JP:2327
NS Solutions
3,940.00
553.85
16.36%
JP:4307
Nomura Research Institute
5,613.00
1.85
0.03%
JP:3626
TIS Inc.
4,174.00
-580.77
-12.21%
Fujitsu Corporate Events
Fujitsu Advances Share Buyback, Repurchases Over 9 Million Shares Under 2026–27 Program
Oct 2, 2026
Fujitsu has continued its share repurchase program authorized by its board in April 2026, buying back 3,036,200 common shares on the Tokyo Stock Exchange between September 1 and 30 for a total of about JPY 11.6 billion. These market purchases form...
Fujitsu Advances Share Buyback Program with Over 6 Million Shares Repurchased
Sep 2, 2026
Fujitsu has reported progress on its ongoing share repurchase program authorized by its board in April 2026, aimed at buying back up to 100 million shares or 150 billion yen of common stock by March 31, 2027. Between August 1 and August 31, 2026, ...
Fujitsu Advances Share Buyback Under ¥150 Billion Capital Management Program
Aug 4, 2026
Fujitsu Limited, Japan’s largest digital services provider by market share, delivers AI, computing, networks, data and security, and converging technology solutions to global customers. With 3.5 trillion yen in annual revenues and around 100...
Fujitsu Posts Higher Q1 Revenue but Sharp Profit Drop, Reaffirms Full-Year Outlook
Jul 30, 2026
Fujitsu reported first-quarter fiscal 2026 revenue of ¥779.4 billion, up 3.9% year on year, with operating profit surging 56.9% to ¥52.5 billion and adjusted operating profit at ¥54.9 billion. However, profit for the period attribut...
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.