Fujitsu Ltd (FJTSF) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

First of all, I'd like to extend my heartfelt sympathies to everyone affected by the 2026 Kumamoto earthquake that occurred on the 28th of July. The Fujitsu Group will also provide support for the affected areas towards their earliest possible recovery. Now, I'd like to explain the financial results for the first quarter fiscal 2026. This page shows an overview of our financial results for the first quarter, fiscal 26. The top half of the slide showed service solutions. Revenue for the first quarter was 548.9 billion yen, up 6.7% year-on-year. Out of this, revenue from Japan business was up 7.5%. Service solutions growth was mainly driven by U-Vans and the modernization business. This segment got off to a strong start. Adjusted operating profit was 62.8 billion yen up 14.9 billion yen year-on-year, an increase of 31%. In addition to benefit of higher revenue, we also were able to continue making steady progress in improving profitability. This led to adjusted operating profit margin of 11.4%, improvement of 2.1%. Bottom half shows the overview of the consolidated total results. Revenue 779.3 billion yen, up 3.9% year-on-year. Revenue increased in service solutions and hardware solutions. Ubiquitous Solutions, on the other hand, saw a decline in revenue because of the pullback from the demand for updating Windows software. Adjusted operating profit was 54.9 billion yen, up 19.7 billion yen year-on-year. Thank you very much. Our growth driver continued to record higher revenue and profit. Hardware solutions revenue increased mainly due to the effect of a foreign exchange movement in business in Japan. This was despite the decline in revenue in Japan due to pullback of large volume business deals last year. Profit declined due to a lower profitability resulting from the...