EarningsQ2 2026 Earnings Report
MX:6501N Q2 2026 EPS Results
Actual EPS$6.03
Consensus EPS$6.48
Beat/MissMissed by -$0.45
One Year Ago EPS$7.28
MX:6501N Q2 2026 Revenue Results
Actual Revenue$343.80B
Expected Revenue$345.98B
Beat/MissMissed by -$2.18B
YoY Revenue Growth+14.84%
Earnings Announcement Details
QuarterQ2 2026
Date10/28/2026
TimeBefore Open
Conference CallWednesday, October 28, 2026
MX:6501N Upcoming Earnings
Hitachi,Ltd.'s next earnings date is estimated for February 3, 2027, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:6501N Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly constructive, with record second-quarter revenue and adjusted EBITA, growth across all four sectors, multiple upward revisions to full-year forecasts, improving margins and cash flow, and continued momentum in Energy, semiconductors, Lumada, HMAX, and digital services. The main challenges were a JPY 9 billion DSS project overrun, restructuring-related comparison effects, uncertainty around geopolitics, interest rates and China-related supplies, and risks associated with large projects and the digital-engineering market. Highlights significantly outweighed the lowlights.Company Guidance
Record Q2 Revenue and Adjusted EBITA
Consolidated Q2 revenue rose 15% year-on-year, driven by business growth and foreign exchange effects. Energy, DSS, Connective Industries, and Mobility all posted higher revenue and profit, while revenue and adjusted EBITA reached record highs for a second quarter.
Upward Revision to Full-Year Outlook
Following the Q1 upward revision, Hitachi again raised its key financial forecasts, including net income. The revenue forecast was increased by JPY 300 billion, mainly in DSS and CI, and adjusted EBITA was increased by JPY 40 billion, mainly in Energy and CI. Full-year free cash flow and ROIC forecasts were also revised upward.
Continued Investment in AI and HMAX
Hitachi plans to continue capital expenditures and corporate growth-strategy investments to accelerate AI utilization and develop HMAX solutions.
DSS Growth Despite One-Time Loss
DSS IT orders and revenue both grew 10% in Q2. First-half profit increased due to revenue growth and ongoing productivity improvements through AI utilization and other measures, and adjusted EBITA margin improved year-on-year. The full-year DSS revenue forecast was raised by JPY 70 billion.
Energy Revenue and Profitability Improvement
Power-grid orders remained strong, with first-half orders rising substantially and continued demand for power-transmission equipment. Energy revenue rose 32%, including foreign exchange effects, while higher revenue and productivity gains drove a substantial improvement in profit margin. The full-year adjusted EBITA forecast was raised by JPY 33 billion, and profit margin is expected to improve by 15%.
Mobility Order and Revenue Growth
Railway-system orders rose 40% in the first half, supported by large signaling and control orders and foreign exchange effects. Mobility revenue increased 18%, supported by the Lumada business, including railway signaling systems, and profit margin improved year-on-year.
Strong CI and Semiconductor-Related Demand
CI first-half orders rose 26% year-on-year. Orders for measurement and analysis systems increased 66%, driven by semiconductor manufacturing equipment and metrology and inspection equipment. CI revenue rose 11% and profit increased, while the full-year revenue forecast was raised by JPY 50 billion and adjusted EBITA by JPY 5 billion.
Underlying Revenue and Margin Expansion
Excluding foreign exchange, business restructuring, and one-time effects, consolidated first-half revenue grew 10%. Adjusted EBITA margin improved year-on-year and is expected to improve by 120 basis points for the full year. Continued growth in the order backlog was cited as support for the outlook.
Positive First-Half and Full-Year Cash Flow Outlook
Excluding approximately JPY 150 billion of last year's business-restructuring impact, interim net income increased year-on-year. Core free cash flow also increased year-on-year after excluding approximately JPY 60 billion of restructuring impact and the effect of large advance payments. Full-year net income is expected to rise by approximately JPY 120 billion, while core free cash flow is expected to increase by approximately JPY 90 billion excluding last year's large advance payments. Cash conversion ratio is expected to remain at 100%.
Strong Segment Orders in Q2
Q2 orders increased 14% in DSS, 47% in Energy, and 69% in Mobility. Energy growth was supported by multiple large-scale HVDC projects in Europe and a U.S. data-center project, while Mobility benefited from large railway vehicle and signaling and control projects in Europe. CI measurement and analysis systems orders rose 77%, led by semiconductor manufacturing equipment.
Growth in Japan and Overseas IT Businesses
Japan's IT business revenue increased 7% year-on-year, with financial infrastructure revenue, particularly insurance, growing 19%. The full-year Japan IT revenue forecast calls for 6% year-on-year growth. Hitachi Digital's overseas IT business, including synergies with other sectors, grew 28% in the first half, while revenue from synergies increased substantially, particularly in Energy and Mobility.
Improved Funding Efficiency and Regional Growth
Cash Conversion Cycle declined slightly due mainly to reduced accounts receivable and increased advances received, resulting in improved funding efficiency. Revenue grew in all regions, particularly North America and Europe; DSS's Japan IT and European storage businesses were robust, while Energy expanded in almost all regions, especially North America.
Shareholder Returns and Portfolio Progress
Hitachi continued portfolio transformation through the transfer of Hitachi Construction Machinery shares, the proposed sale of its Astemo stake, and the establishment of an ATM-business joint venture in which Hitachi is a minority shareholder. The interim dividend will increase 36% year-on-year, and first-half share buybacks totaled JPY 290 billion.
Lumada and HMAX Expansion
Lumada represented 44% of consolidated revenue in the first half. Hitachi's FY 2026 plan calls for Lumada revenue to increase 25% and profit margin to increase 17%. HMAX reached 47% progress against the four-year FY 2026 forecast of JPY 510 billion, and Hitachi raised its four-year forecasts for both Lumada and HMAX. Management said most HMAX revenue under the more detailed definition is expected to be new business.
Hitachi Digital Launch and Synergy Growth
GlobalLogic and Hitachi Digital Services were brought together under the new Hitachi Digital organization. The combined business offers capabilities spanning engineering and build through transformation and operations, including product and data engineering, enterprise and agentic platforms, IoT, CloudOps, and FinOps. Synergies across Hitachi front business units have grown 46% year-on-year.
Cybersecurity and AI Governance Capabilities
Hitachi described growing inquiries from customers responsible for critical infrastructure and said its cybersecurity center of excellence is helping customers defend against cyberattacks. The company is also developing AI governance, security protocols, agent registries, and frameworks covering both IT and operational-technology layers.
Data-Center Project Execution Remains Stable
Data-center-related revenue represents a little more than 10% of Hitachi Energy revenue, while orders and backlog are increasing at a 10%+ level. Management said current projects have experienced no delays or payment issues, and Q2 orders are expected to contribute to revenue next fiscal year.
Energy Capacity and Long-Term Demand Outlook
Hitachi expects power-grid demand to continue growing through 2034, extending the previously discussed outlook through 2030. Planned capital expenditures and productivity improvements are expected to support growth, and long-term contracts use indexing to address inflation-related price changes.
MX:6501N Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed