Fanuc Corporation (6954) AI Stock Analysis

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Fanuc Corporation

(TSE/TYO:6954)

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Rating:70Outperform

Price Target:JPY 6,274.00▲(9.99% Upside)

Action:reiterated

Date:08/06/26

The score is supported primarily by strong financial performance—especially the fortress-like balance sheet and solid profitability/cash generation—offset by weak technical momentum and a high P/E with only a modest dividend yield.

Positive Factors

Fortress Balance SheetNear-zero debt materially reduces leverage and refinancing risk while preserving financial flexibility through manufacturing downturns. The steadily growing equity base provides support for continued investment, customer support, and innovation without relying heavily on external financing.

Negative Factors

Cyclical RevenueThe recent pattern shows that FANUC remains exposed to the cyclicality of industrial manufacturing demand. Revenue recovery in FY2026 is encouraging, but prior contraction means earnings and resource allocation can still fluctuate materially when customers delay factory investment or machine-tool purchases.

Fanuc Corporation (6954) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 5.28T
Dividend Yield: 2.10%
Average Volume (3M): 5.74M
Price to Earnings (P/E): 26.7
Beta (1Y): 1.62
Revenue Growth: 13.13%
EPS Growth: 26.74%
Country: Japan
Employees: 10,040
Sector: Industrials
Sector Strength: 63
Industry: Industrial - Machinery

Fanuc Corporation Business Overview & Revenue Model

Company Description

Fanuc Corporation engages in the development, manufacture, sale, and maintenance services of products used in automated production systems in Japan, the United States, Europe, China, the rest of Asia, and internationally. The company offers CNC serie...

How the Company Makes Money

FANUC makes money primarily by selling factory automation hardware and related systems to manufacturers and machine builders. Its key revenue streams come from (1) CNC systems and related components (controllers, servo motors, servo drives, amplifier...

Fanuc Corporation Financial Statement Overview

Summary

High-quality fundamentals driven by strong profitability (healthy margins with FY2026 improvement), an exceptionally conservative balance sheet with effectively no debt, and solid cash generation. The main detractor is cyclicality and some variability in free cash flow conversion across FY2022–FY2026.

Income Statement

84Very Positive

Balance Sheet

96Very Positive

Cash Flow

82Very Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2026	Mar 2025	Mar 2024	Mar 2023
Income Statement
Total Revenue	835.43B	797.13B	857.83B	795.27B	851.96B	733.01B
Gross Profit	316.38B	294.93B	328.47B	275.84B	325.41B	295.63B
EBITDA	263.35B	243.19B	275.27B	230.76B	279.29B	259.99B
Net Income	161.63B	147.56B	166.54B	133.16B	170.59B	155.27B
Balance Sheet
Total Assets	2.02T	1.94T	2.09T	1.93T	1.87T	1.78T
Cash, Cash Equivalents and Short-Term Investments	696.89B	606.50B	753.87B	539.08B	529.23B	601.22B
Total Debt	15.66B	12.01B	0	10.56B	8.50B	3.92B
Total Liabilities	211.34B	197.14B	207.75B	206.84B	245.98B	234.09B
Stockholders Equity	1.80T	1.72T	1.86T	1.71T	1.62T	1.54T
Cash Flow
Free Cash Flow	0	214.47B	229.72B	117.88B	52.44B	91.22B
Operating Cash Flow	0	255.27B	250.90B	171.76B	99.50B	125.58B
Investing Cash Flow	0	-134.08B	-56.44B	-13.56B	-78.00B	-53.93B
Financing Cash Flow	0	-136.62B	-98.60B	-122.51B	-127.92B	-89.15B

Fanuc Corporation Technical Analysis

Technical Analysis SentimentNegative

Last Price5704.00

Price Trends

50DMA5907.44Negative

100DMA6399.41Negative

200DMA6469.84Negative

Market Momentum

MACD-70.74Positive

RSI42.99Neutral

STOCH68.64Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6954, the sentiment is Negative. The current price of 5704.00 is below the 20-day moving average (MA) of 5936.85, below the 50-day MA of 5907.44, and below the 200-day MA of 6469.84, indicating a bearish trend. The MACD of -70.74 indicates Positive momentum. The RSI at 42.99 is Neutral, neither overbought nor oversold. The STOCH value of 68.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6954.

Fanuc Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

JP:6954 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6273	81Outperform	JPY 3.98T	20.07	9.68%	1.57%	15.69%	42.34%
JP:6954	70Outperform	JPY 5.28T	26.67	―	2.10%	13.13%	26.74%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
JP:7012	50Neutral	JPY 1.85T	14.78	14.35%	1.85%	8.87%	55.83%
JP:6594	45Neutral	JPY 2.06T	-4.06	-36.26%	2.37%	3.77%	-443.21%
JP:6268	44Neutral	JPY 505.22B	25.74	7.86%	1.88%	-7.97%	65.72%
JP:6324	41Neutral	JPY 497.01B	167.36	3.70%	0.39%	11.76%	-21.18%

* Industrials Sector Average

Performance Comparison

JP:6954 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:6954	Fanuc Corporation	5704.00	891.72	18.53%
JP:6273	SMC Corp (OR)	63670.00	11892.29	22.97%
JP:6324	Harmonic Drive Systems	5163.00	2322.46	81.76%
JP:7012	Kawasaki Heavy Industries	2114.50	-329.30	-13.47%
JP:6268	Nabtesco Corporation	4311.00	511.32	13.46%
JP:6594	Nidec Corporation	1801.00	-82.00	-4.35%

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: Aug 06, 2026

Fanuc Corporation AI Stock Analysis

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