Jun Q Results: Strong IT Services and Social Infra Orders, Margin Expansion Drove Profit Growth; Guidance Hike, Though Modest, Could Spark Share Price Rebound

研报英文原文证据摘录

Jun Q Results: Strong IT Services and Social Infra Orders, Margin Expansion Drove Profit Growth; Guidance Hike, Though Modest, Could Spark Share Price Rebound

Update

July 29, 2026 09:11 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MNEC (6701) | Japan Tetsuro Tsusaka, CFA

Equity Analyst

Jun Q Results: Strong IT Tetsuro.Tsusaka@morganstanleymufg.comLuyuan Yang, CFA +81 3 6836-8412

Luyuan.Yang@morganstanleymufg.com +81 3 6836-8423

Services and Social Infra Orders, Keiji Nishimura

Research Associate

Keiji.Nishimura@morganstanleymufg.com +81 3 6836-8424

Margin Expansion Drove Profit

Growth; Guidance Hike, Though

Modest, Could Spark Share

NEC (6701.T, 6701 JT)

IT & Software | Japan

Price Rebound Stock Rating Overweight

Industry View In-Line

Price target ¥5,000

AlphaSignals Earnings Reaction Shr price, close (Jul 29, 2026) ¥4,613

Mkt cap, curr, basic (bn) ¥6,142.3

Strengthens our thesis Modest upside Modest revision higher Avg daily trading value (bn) ¥33.3

Impact to our thesis Financial results versus consensus Direction of next 12-month

consensus EPS

Source: Company data, Morgan Stanley Research

Vs. Forecasts: IT Services and Social Infrastructure both exceeded expectations for

revenue and profit, resulting in a strong quarter. NEC modestly raised full-year

guidance by ¥10bn (or 2%), with ¥5bn increases for both IT Services and Social

Infrastructure. Jun-Q (Consol.): Revenue +15% YoY; OP +87% YoY; OPM 9.1%

(+350bp YoY).

Earnings Surprise: Solid orders; company-wide margin expansion resulting in strong

profit growth; hike to full-year guidance (albeit a modest one).

Recommended Action: Significant margin expansion from June-Q, together with

solid order momentum, could serve as catalyst for share price recovery.

Domestic IT Orders: +3% YoY, in line with our estimate.