Nec Corp Unsp/Adr New (NECPY) Q4 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Thank you for joining us today. I would like to explain the full year financial results for the fiscal year ending March 31, 2026 and the financial forecast for fiscal year ending March 2027, which we announced today. The topics we will cover today are listed here. I will now explain the full year results for fiscal year ending March 2026. First, the key takeaways. Domestic IT and ANS aerospace and defense continue to perform strongly. Annual revenue year-on-year, excluding the impact of the transfer enterprise PC sales functions and the withdrawal from low-margin hardware businesses, grew 9% year-over-year to 3,582.7 billion yen. Non-GAAP operating profit increased by 85.9 billion yen year-on-year to 397.2 billion yen, with the profit margin reaching 11% the first time it has hit double digits. GAAP-based operating profit has set a new record high for the second consecutive fiscal year. Based on these results, we are increasing the year-end dividend by 6 yen to 22 yen per share, bringing the annual dividend to 38 yen. First, the key figures. Annual adjusted operating profit increased by 99.7 billion yen year-on-year to 386.8 billion yen, and the adjusted operating margin stood at 10.8%. Next, the factors contributing to the increase or decrease in adjusted and non-GAAP operating income. In FY25 March, adjusted operating profit was 287.2 billion yen, while non-GAAP OP was 311.3 billion yen. Building on this foundation, we achieved significant growth in IT services and ANS aerospace and defense segments, resulting in a total of 85.9 billion yen in operational improvements. As a result, non-GAAP operating profit for FY26 March reached 397.2 billion yen. Non-GAAP adjusted total to 10.4 billion yen, consisting of 3.9 billion recorded through the third quarter and 6.5 bil...