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Fujitsu's Fiscal Q1 Attributable Profit Falls 77% on One-Off Comparison, Maintains Outlook

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Fujitsu's Fiscal Q1 Attributable Profit Falls 77% on One-Off Comparison, Maintains Outlook

Fujitsu's (TYO:6702) attributable profit fell 77% in the first quarter as the absence of a one-time gain from the sale of Shinko Electric Industries shares weighed on reported earnings.

Profit attributable to owners of the parent declined to 40.1 billion yen in the quarter ended June 30 from 171.8 billion yen a year earlier, according to the company's earnings release on Thursday.

Revenue rose 3.9% to 779.4 billion yen from 749.9 billion yen, while operating profit climbed 57% to 52.5 billion yen from 33.5 billion yen.

The prior-year quarter included a gain on the disposal of Shinko Electric Industries shares.

Fujitsu said "strong growth in Uvance and modernization" underpinned its service solutions business during the quarter.

Manufacturing customers drove growth in the enterprise segment, while finance, local government, public racing and defense customers led expansion in the public segment.

The company added that adjusted operating profit benefited from "steady progress in profitability improvements, in addition to the benefit of higher revenue."

The service solutions business remained the group's main growth engine. Revenue increased 6.7% to 549.0 billion yen from 514.6 billion yen, while adjusted operating profit rose 31% to 62.8 billion yen from 47.8 billion yen.

Revenue from the Uvance business climbed 31% to 192.2 billion yen, and orders jumped 51% to 193.3 billion yen.

The company also expanded the use of artificial intelligence across nearly all system integration projects and has begun integrating multi-agent AI into its modernization services, targeting a nearly 40% reduction in delivery time.

Fujitsu maintained its full-year forecast for revenue of 3.51 trillion yen, operating profit of 415 billion yen and profit attributable to owners of the parent of 310 billion yen.

On an adjusted basis, it continues to expect operating profit of 425 billion yen and adjusted profit attributable to owners of the parent of 320 billion yen.

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