NEC exceeds profit goals, raises outlook on strong IT demand

NEC Corporation (TSE: 6701) announced strong financial results for the fiscal year ended March 31, 2025, exceeding its profit targets set in the 2025 Mid-term Management Plan a year ahead of schedule. Consolidated revenue was JPY3,423.4 billion, a slight decrease YoY. However, Non-GAAP operating profit increased significantly to JPY311.3 billion. Adjusted operating profit was JPY287.2 billion. This performance allows the company to raise its FY26/3 Non-GAAP operating profit forecast to JPY320.0 billion. The outperformance was driven by strength in both IT services and social infrastructure segments, with adjusted operating profits boosted by 22%. The company attributes its success to improvements in domestic IT business and strong performance in the ANS (Aerospace and National Security) sector. It is maintaining its policy of prioritizing investments in growth areas while also increasing shareholder returns through stable dividend increases, with a proposed annual dividend increase from JPY120 to JPY140. NEC also continues to implement its policy of reducing cross-shareholdings, with cumulative sales reaching JPY159.0 billion. Finally, NEC is changing its segments from Q1 FY26/3 and will now consolidate all digital platforms and delivery services under domestic IT, along with others.