June Quarter Earnings Preview

Research evidence excerpt

June Quarter Earnings Preview

Idea

July 27, 2026 06:45 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MHitachi (6501) | Japan Kazuo Yoshikawa, CFA

Equity Analyst

June Quarter Earnings Preview Kazuo.Yoshikawa@morganstanleymufg.comMorgan Stanley Asia Limited+ +81 3 6836-8408

Lisa Jiang

What’s Changed Equity Analyst

Hitachi (6501.T) From To Lisa.Jiang1@morganstanley.com +852 2239-1282

FY3/27e Adj. EBITA ¥1.5tn ¥1.5tn (Not

changed) Morgan Stanley MUFG Securities Co., Ltd.+

FY3/28e Adj. EBITA ¥1.74tn ¥1.75tn Daisuke Horiuchi

Research Associate

Daisuke.Horiuchi@morganstanleymufg.com +81 3 6836-5428

Key points to watch in the earnings announcement include

Power Grids orders and margins, the performance of

GlobalLogic, Hitachi Vantara, and Measurement & Analysis

Systems.

Maintain EW rating: Since early April, Hitachi’s share price has underperformed Hitachi (6501.T, 6501 JP)

TOPIX by 8% (Exhibit 1), and its valuation multiple has declined (Exhibit 2). In Conglomerates | Japan

Stock Rating Equal-weight

addition to concerns over an earnings slowdown at GlobalLogic due to “AI Industry View No Rating

disruption”, the June Investor Day was not enough to materially boost market Price target ¥5,200

Up/downside to price target (%) 7

confidence in AI-driven growth acceleration. While the risk-reward profile has Shr price, close (Jul 24, 2026) ¥4,850

improved somewhat, we continue to view the shares as close to fair value and Mkt cap, curr, basic (bn) ¥22,015.6

Div yld (03/27e) (%) 1.1

maintain our EW rating.

Fiscal Year Ending 03/26 03/27e 03/28e 03/29e

Fine-tuning our earnings forecasts: We make no major changes to our forecasts Revenue, net (¥bn) 10,587 11,360 12,321 13,449

Operating profit (¥bn)* 1,199.3 1,399.9 1,639.4 1,894.6

(Exhibit 3).