NTT Inc (9432.T): Updating forecasts - expecting flat profit YoY in FY3/27

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NTT Inc (9432.T): Updating forecasts - expecting flat profit YoY in FY3/27

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30 Jun 2026 02:35:02 ET │ 15 pages

NTT Inc (9432.T)

Updating forecasts - expecting fat profit YoY in FY3/27

CITI'S TAKE

We update our forecasts to reflect FY3/26 results, FY3/27guidance, and our

subsequent follow-up. FY3/27 guidance calls for 4.5% revenue growth but

flat OP, with pre-tax and net profit projected to decline c5%. While profit is Neutral

slated to grow in the regional communications business and others (real Price (29 Jun 26 15:30) ¥146.0

estate, energy, etc.), it is projected to be flat or lower in the integrated ICT

Target price ¥160.0business (including NTT Docomo and NTT Com) and global solutions

(including NTT Data). Additionally, while the company revised its medium- Expected share price return 9.6%

term financial targets in FY3/26, it pushed back its consolidated EBITDA Expected dividend yield 3.7%

target of ¥4trn from FY3/28 to FY3/31. We view the firm’s earnings stability

Expected total return 13.3%positively but believe growth potential is limited. We maintain our Neutral

rating and ¥160 target price. Market Cap ¥11,887,849M

US$73,573M

Medium-term target revision somewhat disappointing — NTT revised its

medium-term targets with FY3/26 results. While initially targeting consolidated

EBITDA of ¥4trn by FY3/28, the company postponed the achievement of this to

FY3/31, judging that the business environment in existing fields (connectivity) Price Performance

remains more challenging than previously anticipated. The company aims to

(RIC: 9432.T, BB: 9432 JP)accelerate profit growth centered on AI over the medium term. As it plans strategic

upfront investments, profits may stagnate somewhat in the near term.