NTT, Inc. reported a first-half profit decline on Wednesday and raised its full-year forecast in the same announcement. The pairing is less contradictory than it looks, but the first-half numbers leave some questions open.
What fell and what rose
For April to September 2026, operating revenues rose 8.7% to ¥7.36tn, a record according to NTT's results presentation. Operating profit fell 12.2% to ¥830.1bn, profit before tax fell 13.8% to ¥766.4bn, and profit attributable to NTT fell 16.0% to ¥500.2bn. Basic earnings per share were ¥6.15, against ¥7.20 a year earlier.
The presentation also gives EBITDA, which NTT defines to exclude depreciation on right-of-use assets: ¥1.66tn, down 4.9%. All figures are IFRS. NTT's interim earnings summary (tanshin) states it is not subject to review by a certified public accountant or audit firm.
Where the profit went
The segment table in the tanshin shows the weakness was concentrated. Global Solutions segment profit fell to ¥144.2bn from ¥269.0bn. Integrated ICT edged up to ¥482.1bn from ¥474.7bn, and Regional Communications was roughly flat at ¥188.2bn against ¥187.5bn. The tanshin does not explain the Global Solutions decline. NTT's supplementary data states that the Global Solutions segment's full-year forecasts were left unchanged from May.
What management now expects
NTT attributes the upgrade to higher income in the integrated ICT segment from recent strong sales. Operating profit guidance rises to ¥1.73tn, profit before tax to ¥1.52tn, and profit attributable to NTT to ¥994bn, with EPS of ¥12.20. Even after the increase, the profit attributable guide is 4.1% below last year.
The presentation shows the changes from the May 8 guidance:
| Measure | May 8 guide | Nov 4 guide | Change |
|---|---|---|---|
| Operating revenues | ¥15.06tn | ¥15.08tn | +¥20bn |
| EBITDA | ¥3.43tn | ¥3.45tn | +¥20bn |
| Operating profit | ¥1.71tn | ¥1.73tn | +¥20bn |
| Profit attributable to NTT | ¥980bn | ¥994bn | +¥14bn |
| Capital expenditure | ¥2.43tn | ¥2.473tn | +¥43bn |
The presentation attributes the upgrade to strong Docomo results. Docomo's own full-year revenue forecast rises ¥20bn to ¥6.841tn and its operating profit forecast rises ¥20bn to ¥963bn. It gives no increase for NTT Data Group, NTT East, NTT West or NTT Urban Solutions. The ¥43bn capex increase is for mobile network quality improvements to handle traffic growth.
The cash-flow gap
Operating cash flow was ¥46.4bn, against ¥977.8bn a year earlier. The cash flow statement shows lines that moved sharply, including a ¥711.6bn outflow from the change in trade and other receivables, compared with a ¥217.8bn inflow a year earlier. It also lists new bank-lending and deposit lines. The tanshin does not attribute the fall to any of these items. It notes that interest on DOCOMO SMTB Net Bank is now shown separately within operating activities.
Shareholder returns
The interim dividend is ¥2.70 a share, up from ¥2.65, with a full-year forecast of ¥5.40. A buyback of up to ¥200bn runs to March 2027, with ¥104.9bn acquired by the end of October.