Fujitsu Limited

6702.TMEDIUM

Optical Transport (OTN) — JP equivalent of $NOK · Weight: 7%· Data as of 2026-05-14

¥3,075-3.3%

6-month daily

Investment Thesis

Direct JP equivalent of Nokia ($NOK) in the X post — Fujitsu's 1FINITY Ultra Optical System delivers 1.2 Tbps per wavelength with upgrade path to 1.6 Tbps, using liquid cooling + AI/ML automation. P300 800G ZR/ZR+ coherent pluggable transceiver covers hyperscale data center interconnect. Like Nokia's PSE-6s, Fujitsu's 1.2 Tbps coherent capability is one of the few non-Cisco/non-Nokia/non-Infinera solutions globally. Cheaper valuation than Nokia (Fujitsu PE 18.9 vs Nokia ~30) despite similar OTN positioning. FY2026 net income +104.5%, revenue ¥3.50T. The 'forgotten one' of Japanese photonics — market still sees Fujitsu as an IT services company.

Risk

OTN is a small fraction of Fujitsu's total revenue (also IT services, Uvance / Modernization). Most analyst coverage focuses on services growth, not photonics. If hyperscale buyers consolidate around Nokia/Cisco/Infinera, Fujitsu's photonics window narrows. PE 19x is not deep value — but for the OTN exposure alone, the multiple is reasonable.

Monitoring Trigger

If 1FINITY Ultra wins a named hyperscale design (NVIDIA / Meta / Microsoft / Google), upgrade. If Fujitsu announces an OTN-business carve-out or IPO, MASSIVE value crystallization. If Nokia (post-Infinera) or Cisco wins long-term contracts that include Tier-2/Tier-3 hyperscale buyers, photonics window narrows.

Key Dates

2026-Q3earningsQ3 results

Key Metrics

18.9

Fwd PE

N/A

P/B

N/A

ROE

N/A

Op Margin

N/A

D/E

1.64%

Div Yield

N/A

FCF

¥5.62T

Mkt Cap

Business Segments

Segment	Revenue	Share	Description
Service Solutions (largest)	Major	Major	Uvance, modernization, system integration.
Network products (optical transport)	Sub	Sub	1FINITY Ultra Optical System (1.2T/1.6T coherent), P300 ZR/ZR+ pluggable, OTN systems.

Supply Chain Evidence

Evidence	Customer	Product	Detail
probable	Hyperscale cloud operators + Tier-1 carriers	1FINITY Ultra Optical System (1.2T per wavelength) + P300 800G ZR/ZR+ coherent pluggable	Fujitsu 1FINITY Ultra targets hyperscale data center interconnect and metro networks. Customer names not publicly disclosed in detail.[source](2025)
probable	North American telecom carriers	OTN equipment + coherent transponders	Fujitsu Network Communications (US arm) serves major US carriers with 1FINITY platform.[source](Multi-year)
probable	Mobile network operators (5G fronthaul/midhaul)	Optical transport for 5G xHaul	Fujitsu OTN platforms used for 5G fronthaul / midhaul backhaul.[source](Multi-year)

Sources & References

↗StockAnalysishttps://stockanalysis.com/quote/tyo/6702/↗Fujitsu 1FINITY Ultra Opticalhttps://www.fujitsu.com/us/products/network/products/1finity-ultra-optical-system/↗Fujitsu OTNhttps://www.fujitsu.com/us/products/network/technologies/otn/

Peer Comparison

Company	PE	Fwd PE	ROE	Op Margin	FCF
Hamamatsu Photonics	50.4	42.5	N/A	17.8%	N/A
Lasertec Corporation	44.1	41.1	N/A	N/A	N/A
USHIO INC.	59.6	29.6	N/A	N/A	N/A
Fujikura	87.7	84.2	24.4%	N/A	N/A
Furukawa Electric	65.7	65.8	N/A	N/A	N/A
Sumitomo Electric Industries	34	23.9	N/A	N/A	N/A
HORIBA	27.5	23.7	N/A	N/A	N/A
Mitsubishi Electric	32.5	27.5	N/A	N/A	N/A
Anritsu Corporation	45.4	37.5	N/A	N/A	N/A
NTT, Inc.	11.9	11.6	N/A	N/A	N/A
Fujitsu Limited	18.9	19	N/A	N/A	N/A
NEC Corporation	19.95	18.2	N/A	N/A	N/A
DISCO Corporation	56	42.6	N/A	N/A	N/A
TOWA Corporation	45.2	24	N/A	N/A	N/A