NTT Inc (9432.T): Q1 in line – revenue/profit growth give steady impression, but no surprises, neutral share impact

Research evidence excerpt

Flash |

06 Aug 2026 08:24:28 ET │ 10 pages

NTT Inc (9432.T)

Q1 in line – revenue/profit growth give steady impression, but no

surprises, neutral share impact

CITI'S TAKE

Neutral

Price (06 Aug 26 15:30)

¥154.5

Target price

¥160.0

Expected share price return

3.6%

Expected dividend yield

3.5%

Expected total return

7.1%

Market Cap

¥12,542,904M

US$79,511M

FY3/27 Q1 results saw revenue of ¥3.6trn (+11% YoY), OP ¥425.1bn (+5%),

and NP ¥274.8bn (+6%), with revenue and profit growing. OP slightly

exceeded consensus (¥415.3bn) and was in line with our forecast

(¥423.3bn). As full-year guidance calls for nearly flat OP, we get the

impression of a steady start in Q1. Among major subsidiaries, NTT Docomo

posted OP of ¥246.2bn (+3%), an increase. Profit rose in smart life,

offsetting declines in consumer communications and enterprise. NTT

Data saw OP of ¥63.5bn (YoY +10%), an increase. While overseas OP

declined slightly, Japan OP increased and drove performance. Separately,

the data center business reported revenue of ¥151.5bn (+17%) and OP

¥27.8bn (-2%). Results were steady but within expectations, and we

believe the stock price impact will be neutral.

Keiichi YoneshimaAC

Implications — We believe Q1 was a steady quarter, with consolidated results

showing revenue and profit growth. While NTT Docomo's consumer telecoms

delivered a decline in profit, ARPU increased (YoY +¥70), and we choose to focus on

the possibility of a turnaround. Although we regard Q1 results as solid, the stock

price impact will likely be neutral. The dividend yield should continue to support the

stock price. We believe a rerating of the stock requires renewed growth at NTT

Docomo and NTT Data, as well as expansion of the data center business.

Consol.

3/25A

Sales

Pretax Profit

NP

¥B

YOY (%)

¥B

YOY (%)

OP

OPM(%)

¥B

YOY (%)

¥B

YOY (%)

EPS

PE

X

13,704.73

2.5

1,649.57

-14.2

12.0

1,564.70

-21.0

1,000.02

-21.8

11

14.0

13.5

3/26A

14,409.12

5.1

1,706.22

3.4

11.8

1,581.92

1.1

1,037.03

3.7

11

3/27CE

15,060.00

4.5

1,710.00

0.2

11.4 1,500.00

-5.2

980.00

-5.5

12

12.8

3/27E

15,072.65

4.6

1,700.78

-0.3

11.3

1,475.78

-6.7

972.98

-6.2

11

14.4

3/28E

15,777.75

4.7

1,810.53

6.5

11.5

1,585.53

7.4

1,045.34

7.4

12

13.4

3/29E

…