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NTT Data's Quarterly Profit Climbs on Strong Japan, Overseas Demand

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NTT Data's Quarterly Profit Climbs on Strong Japan, Overseas Demand

NTT Data (TYO:9613) posted higher first-quarter attributable profit as strong demand for large-scale digital transformation projects in Japan and overseas drove revenue growth.

Profit attributable to shareholders rose to 22.5 billion yen in the quarter ended June 30 from 21.1 billion yen a year earlier, according to the company's earnings release on Thursday.

Sales increased 16% to 1.28 trillion yen from 1.10 trillion yen, while operating profit rose 9.9% to 63.5 billion yen from 57.8 billion yen.

New orders climbed 30% to 1.46 trillion yen, driven by large-scale contract wins across both Japan and overseas operations.

In Japan, new orders and revenue increased across the public and social infrastructure, financial, and enterprise businesses. Operating profit also improved, supported by higher sales, particularly in projects for central government agencies and related organizations.

Overseas, revenue rose across all regions, led by growth in IT services in Europe, the Middle East, Africa, and Latin America (EMEAL), as well as network equipment-related business in North America.

The company said operating profit in its overseas business declined due to the deconsolidation of data centers sold during fiscal 2025.

Excluding the 4 billion yen impact of the deconsolidation, however, the overseas segment recorded year-over-year operating profit growth.

Looking ahead, NTT Data said it continues to focus on its two strategic growth areas, including AI-empowered new value and productivity, and next-generation infrastructure.

The company maintained its full-year forecast, expecting revenue of 5.19 trillion yen, operating profit of 470 billion yen, profit attributable to shareholders of 191 billion yen, and earnings per share of 136.48 yen.

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