Nippon Telegraph and Telephone (NTT1N) Q2 2026 Earnings Report

The call was cautiously constructive but included significant execution and financial uncertainties. Positive developments included strong NTT DATA orders, data center investment opportunities, on-track NTT EAST and WEST reforms, October MNP recovery, continued shareholder-return commitments, and progress toward the JPY 4 trillion EBITDA target. These were offset by intense DOCOMO competition, declining promotion efficiency, required network and marketing spending, tight cash flow, lower-than-assumed data center transfer gains, and challenges in parts of the overseas business.

Management said it would like to achieve its targets while monitoring DOCOMO’s competitive environment, with DOCOMO’s cost response still lacking complete visibility; the data center gain is JPY 26 billion less than originally assumed, while NTT DATA’s order situation is strong. Cash flow is expected to be tight this fiscal year and next fiscal year for a little bit following NTT DATA’s full ownership and the acquisition of SBI Sumishin Net Bank, but the company is targeting EBITDA of JPY 4 trillion, continuing to increase the dividend, maintaining the share buyback and dividend level, and maintaining its current credit rating of A-. NTT DATA investment is expected to accelerate globally in a way that is well balanced, with focus on areas where the return is higher, and DOCOMO’s construction process is expected to increase by threefold in the second half and continue through this fiscal year and next fiscal year; NTT EAST and WEST are considered on track, while NTT DATA’s medium-term plan and the consolidated business plan will be revisited in spring next year.