NEC (6701) Announces new MTP; targets profit CAGR of 15% through FY2030

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NEC (6701) Announces new MTP; targets profit CAGR of 15% through FY2030

J P M O R G A N Asia Pacific Equity Research

13 May 2026

NEC (6701) Overweight

6701.T, 6701 JP

Announces new MTP; targets profit CAGR of 15% Price (12 May 26):¥4,130

through FY2030 Price Target (Dec-26):¥5,000

NEC announced a new medium-term business plan (MTP) through FY2030 on Japan Equity Research

May 12. It targets non-GAAP operating profit CAGR at 15% through FY2030, and

Technology - Consumer Electronics/

we estimate this is near the top of the range of market estimates. In addition, while Industrial Electronics/Precisions

many companies are emphasizing ROE, ROIC, and other benchmarks of AC Junya Ayada

efficiency in their MTPs, we take a positive view that NEC’s new plan reflects its

(81-3) 6736 8631

strong focus on profits rather than calling for business downsizing. We need to junya.ayada@jpmorgan.com

examine the plan’s details and likelihood of success, but by presenting specific Mio Shikanai

views on value creation and its role in the AI-native era, we think NEC’s new plan (81-3) 6736 1313

could contribute to the stock market reassessing the value of IT services mio.shikanai@jpmorgan.com

companies. JPMorgan Securities Japan Co., Ltd.

• MTP overview: MTP targets for FY2030 include a non-GAAP operating

margin of 15% or higher (FY2026 guidance 12%), non-GAAP operating profit

growth of 2x (vs FY2025), and non-GAAP EPS CAGR of 15% or higher. The

target for non-GAAP operating profit growth suggests that NEC is targeting

around ¥800 billion based on FY2026 guidance for ¥420 billion. NEC targets

IT services sales CAGR at 3–5% and non-GAAP operating margin at around

20% (FY2025 13.4%), and social infrastructure sales CAGR at 3-5% and non-

GAAP operating margin in the high-10% range (FY2025 8.9%).