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NEC Corporation

6701Prime MarketElectric Appliances

日本電気株式会社 logo
NEC Corporation6701

IT Services Business

NEC Group's core segment, achieving high growth and improved profitability by capturing domestic and overseas DX demand.

PeriodCurrentPreviousChange
External Revenue (Full Year, FY2026 (ending March 2026))¥2,508,925 million¥2,459,820 million (FY2025 (ended March 2025), restated)
Segment Profit (Adjusted Operating Profit Equivalent, Full Year, FY2026 (ending March 2026))¥336,704 million¥251,822 million (FY2025 (ended March 2025), restated)
Segment Profit Change Rate (Full Year, FY2026 (ending March 2026))+33.7%
External Revenue Change Rate (Full Year, FY2026 (ending March 2026))+2.0%

Business Details

Provides System Integration / Consulting (system construction and consulting), Support (Maintenance) Services, Outsourcing & Cloud Services, System Equipment, and software & services. Key subsidiaries include NEC Solution Innovators, ABeam Consulting, NEC Fielding, Avaloq Group (SaaS for financial institutions), and KMD (Nordic digital government), serving a wide range of customers from domestic corporations and government agencies to overseas Digital Government / Digital Finance clients. Following the organizational restructuring effective April 1, 2025, NEC Networks & System Integration Corporation, previously part of the Social Infrastructure Business, was incorporated into this segment.

Recent Overview

Segment profit increased significantly by 33.7% year-on-year in the full year of FY2026 (ending March 2026), with a sharp improvement in profitability.

Full-year external revenue for FY2026 (ending March 2026) grew steadily to ¥2,508,925 million (+2.0% year-on-year). Segment profit rose sharply to ¥336,704 million (+33.7% year-on-year), reflecting a marked improvement in profitability. Following the organizational restructuring effective April 1, 2025, NEC Networks & System Integration Corporation was incorporated into this segment, strengthening the business foundation for municipal and SME-focused business. Prior-period segment information is presented on a restated basis reflecting this change.

Key Products

platform
BluStellar

Growing faster than initially anticipated amid strong DX demand. A core brand accelerating the portfolio shift toward high-profitability products and services such as AI and security.

service
System Integration / Consulting

Primarily serving domestic corporations and government agencies, contributing to a significant improvement in adjusted operating profit through improved profitability in the system construction area. Includes high-value-added consulting provided by ABeam Consulting and others.

service
Outsourcing & Cloud Services

Works in conjunction with maintenance and support services provided by NEC Fielding and others, helping customers reduce IT operating costs and maintain stable operations. Forms a continuous revenue base.

service
Digital Government / Digital Finance (Overseas)

Deploys Nordic digital government services through KMD and a SaaS platform for financial institutions through Avaloq Group. Continued growth centered on Europe and North America.

service
Support (Maintenance) Services

Deployed mainly through NEC Fielding for domestic customers. Secures stable stock-type revenue, underpinning the revenue base of the segment as a whole.

Growth Drivers

  • Expansion of the BluStellar business amid strong DX demand (growing faster than initially anticipated)
  • Significant improvement in adjusted operating profit driven by improved profitability in the system construction area
  • Strengthening of municipal and SME-focused business through the full consolidation and segment incorporation of NEC Networks & System Integration Corporation
  • Continued growth of overseas IT services (Digital Government / Digital Finance)
  • Accelerating portfolio shift toward high-profitability products and services such as AI and security

Risks

  • Demand fluctuation risk due to changes in economic conditions and IT investment trends
  • Integration and synergy realization risk related to overseas subsidiaries acquired through M&A (Avaloq, KMD, etc.)
  • Risk related to securing and retaining talented personnel
  • Cybersecurity risk and compliance risk related to personal information protection laws, etc.
  • Impact of foreign exchange fluctuations on overseas IT services revenue (Europe and North America businesses)

Last updated: June 18, 2026