NTT (9432) 1Q results: In line with our estimates; awaiting announcement of mobile price hikes

Research evidence excerpt

J P M O R G A N

Asia Pacific Equity Research

07 August 2026

NTT (9432)

1Q results: In line with our estimates; awaiting

announcement of mobile price hikes

Neutral: NTT reported 1Q operating profit of ¥425.1 billion (+4.9% YoY; our

estimate ¥423.9 billion; Bloomberg consensus estimate ¥411.9 billion) and

adjusted EBITDA of ¥836.2 billion (+4.3%; ¥849.8 billion; ¥847.1 billion), in line

with our estimates and the Bloomberg consensus estimates. Operating profit beat

our estimate in the others segment on a concentration of real estate sale gains in 1Q,

generally offsetting shortfalls in other business segments (NTT Docomo, NTT

East/West, NTT Data). NTT said progress was in line with guidance, but our

impression is that the earnings progress rate for overseas business at NTT Data

needs to catch up.

Neutral

9432.T, 9432 JP

Price (06 Aug 26):¥155

Price Target (Dec-26):¥150

Japan Equity Research

IT Services and Telecoms

Matthew Henderson AC

(81-3) 6736-8831

JPMorgan Securities Japan Co., Ltd.

Earnings summary: (1) Integrated ICT segment (NTT Docomo): Operating

profit of ¥246.2 billion (+2.7% YoY) was slightly below our estimate of ¥250.1

billion, but it seems sales promotion costs were higher than expected. The

market was concerned about a decrease in revenue from ending 3G services in

1Q (decrease of around 200,000 handset subscriptions), but mobile revenue

held flat YoY. The consolidation of Docomo SMTB Net Bank contributed

¥10.7 billion to operating profit in the smart life business, but the business also

appears to include several billion yen in stock valuation gains as a market

factor. Enterprise business profit decreased temporarily due to large projects

with heavy upfront costs, but this was in line with guidance. Mobile revenue

fell 0.3% YoY in 1Q, narrowing the margin of decline from 0.8% YoY in 4Q

FY2025, and turned positive in July on continued net growth in MNP

subscribers. However, the number of handset subscriptions fell by 379,000

QoQ and 492,000 YoY to 52,592,000, missing our estimates for declines of

280,000 QoQ and 393,000 YoY. It seems the subscriber acquisition

environment is challenging, even allowing for the end of 3G service (about

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