FUJITSU LIMITED
6702・Prime Market・Electric Appliances
Business
Fujitsu Limited was founded in 1935 and is listed on the Prime Market of the Tokyo Stock Exchange. As a comprehensive IT services company, the group—including 224 consolidated subsidiaries—provides digital services across Japan and the rest of the world. Its core Service Solutions business offers consulting, cloud, systems integration, and managed services; its Hardware Solutions business covers servers, storage, and communications infrastructure; and its Ubiquitous Solutions business handles client devices such as personal computers. With a customer base spanning over 50 years across all industry sectors including public sector, finance, manufacturing, and distribution, the company supports digital transformation for corporations and government agencies both in Japan and overseas.
Business Model
Fujitsu is moving away from the traditional man-month-based system integration pricing model and promoting a pricing strategy based on outcomes and delivered value. The company positions its global DX offering "Fujitsu Uvance" and modernization of existing systems as the two pillars of growth, aiming to improve revenue stability and profitability by raising the proportion of recurring revenue. Through development standardization and automation leveraging Global Delivery Centers and the Japan Global Gateway, the company is improving its gross margin ratio by 2 percentage points every year.
Company Strengths
FY2025 revenue for Uvance was ¥7,093 million (up 47% year on year), and for Modernization Services was ¥3,921 million (up 32% year on year). The combined share of these two businesses within Service Solutions expanded to 41%. Service Solutions' adjusted operating margin improved for six consecutive fiscal years, from 6.0% in FY2020 to 15.4% in FY2025, and gross margin reached 38.7% (up 2 points year on year).
The company has a track record of providing business application development, operation, and maintenance across all industry sectors, including manufacturing, finance, distribution, public, and healthcare, for over 50 years. Domestic orders received in FY2025 grew 102% year on year (108% excluding large-scale projects), and the order backlog stood at ¥1,1270 million (107% versus the previous fiscal year-end), reflecting continued robust demand.
The company completed the carve-out of Shinko Electric Industries Co., Ltd., FDK Corporation, Fujitsu Optical Components Limited, and Fujitsu General, and classified Device Solutions as Discontinued Operations. At the end of FY2025, net interest-bearing debt was minus ¥3,172 million (effectively net cash), and core free cash flow was ¥2,899 million, substantially strengthening the financial foundation for growth investment and shareholder returns.
ENVALITH's Perspective
Performance Trend
Revenue was ¥3,502,971 million (down 1.3% year on year), marking a second consecutive year of slight revenue decline. This was mainly due to a decline in external revenue from Hardware Solutions to ¥933,329 million (down 11.0% year on year). Meanwhile, a reduction in cost of sales (from ¥2,382,138 million to ¥2,256,104 million) improved the gross profit margin, resulting in operating profit of ¥348,329 million (up 31.4% year on year) and adjusted operating profit of ¥390,589 million (up 27.1% year on year), representing substantial profit growth. A sharp expansion in equity in earnings of affiliates (from ¥8,248 million to ¥50,316 million) also boosted profit before income taxes, and profit attributable to owners of the parent, which included a gain of ¥146,339 million from the sale of Discontinued Operations (Device Solutions), reached ¥449,408 million, up 104.5% year on year. For FY2027 (ending March 2027), the company forecasts revenue of ¥3,510,000 million (up 0.2% year on year) and adjusted operating profit of ¥425,000 million (up 8.8% year on year), expecting continued profit growth on a continuing operations basis.
Growth Strategy
Transformation into a DX services company through three pillars: expansion of Fujitsu Uvance, acceleration of modernization, and technology enhancement
Expanding Fujitsu Uvance offerings as a globally common value delivery service, driving the launch of Vertical domains and improving the recurring revenue ratio. The achievement of a 15.4% adjusted operating profit margin in Service Solutions confirms the penetration of the high-value-added pricing strategy.
Expanding legacy system modernization deals centered on Regions (Japan) for the Japanese market. Aiming for structural improvement in gross profit margin through development standardization and automation leveraging the Japan Global Gateway and Global Delivery Center.
Completed the sale of Device Solutions (Shinko Electric Industries Co., Ltd., FDK Corporation, Fujitsu Optical Components Limited, etc.), achieving concentration of management resources on continuing operations. Proceeds from the sale were allocated to share buybacks and dividend increases, improving the ratio of equity attributable to owners of parent to 59.6%.
Increased the FY2026 (ending March 2026) dividend to ¥50 per share (from ¥28 in the previous period), with ¥55 per share forecast for FY2027 (ending March 2027). Resolved on April 28, 2026 to conduct share buybacks with an upper limit of 100 million shares and ¥150,000 million, aiming to achieve both improved capital efficiency and shareholder returns.
Newly established 1FINITY Corporation (added to the scope of consolidation in FY2026 (ending March 2026)) to strengthen the competitiveness of the telecommunications infrastructure business, including mobile base stations and optical transmission systems. Continuing development of the next-generation processor "FUJITSU-MONAKA" to reinforce the technological foundation of the hardware business.
Last updated: July 19, 2026