KDDI reports robust H1 FY26 results, driven by strategic growth

KDDI Corporation reported a 3.8% increase in operating revenue year-over-year (YOY) to JPY 2,963.2 billion and a 0.7% YOY increase in operating income to JPY 577.2 billion for H1 FY26. Profit attributable to owners of the parent rose 7.6% YOY to JPY 377.7 billion. These results align with the company’s EPS target, with forecast progress at 49.0% for operating income and 50.5% for profit. The mobile segment shows accelerating growth, with ARPU extending due to price revisions and churn rate improving.

Strategic initiatives include Starlink Direct data communication, enhancing customer experience, and introducing new price plans. KDDI is also expanding its AI Data Center in London, with a sixth facility projected to open in FY28-03, increasing power capacity by 1.6x from approximately 35MW to 57MW, to meet growing AI demand. Domestically, an Osaka Sakai Data Center with NVIDIA GB200 NVL72 launched in October 2025, with operations starting January 2026, supporting sovereign AI development.

Key focus areas for H2 include continued mobile growth, a shift in finance strategy emphasizing loan-to-deposit ratio, and accelerated DX growth, particularly a turnaround in BPO business. The company declared an interim dividend of JPY 40 per share, reinforcing its commitment to sustainable growth in the AI era and enhancing corporate value through disciplined capital allocation.