Updating Estimates, Expecting Steady Fundamentals

Research evidence excerpt

Updating Estimates, Expecting Steady Fundamentals

to ¥55, in line with

company guidance. Chart 1 - Big 4 Japanese IT Service Companies

Historical PER Chart (3 YR) - Facts Only

40.00For FY3/27, we forecast adjusted operating profit of ¥429.4bn (+10.0% YoY; consensus:

¥414.7bn; company guidance: ¥425bn) and EPS of ¥182.6 (consensus: ¥176.3; company 35.00

guidance: ¥182.4). For the Service Solutions segment, we estimate revenue of ¥2.48tn (+5.7% 30.0025.00

YoY; company guidance: ¥2.47tn). Similar to the previous reporting structure, we expect both 20.00

the Enterprise and Public segments to be heavily weighted towards Q4. 15.00

10.00

We see potential upside in the Public segment, which could exceed its 20.1% adjusted 5.00

0.00operating margin target. The segment includes central government, financial institutions, Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26

regional governments, and defense-related projects. Given the large size of many Fujitsu . NEC PER (x) Fujitsu PER (x) NRI PER (x) OBIC PER (x)

Source: Jefferies, Factset

projects, strong execution could drive meaningful operating leverage and margin upside. For

the Enterprise segment, our estimates are broadly in line with company guidance. Figure 1 - Peer Valutation(as of 7/1/2026)

25.0

Hardware Solutions – This is another segment where Fujitsu could potentially outperform. 21.5 21.7

Management expects demand for Photonics (network products) to increase from both the US 20.0 17.9 18.8 19.2 19.6

and Japan. The segment will also be exposed to pricing dynamics and product availability this 15.0 15.6

fiscal year. Fujitsu typically updates its price lists every three to six months, and we expect 11.3 12.3

product shipments to be largely aligned with the latest pricing.