Home/Sovereign AI / Japan AI Stack/Fujitsu

Fujitsu

6702.THIGH

Core · Weight: 10%· Data as of 2026-05-20

¥3,075-3.3%

6-month daily

Investment Thesis

FY2026 confirmed: adj. OP ¥390.5B (+27.1%), adj. margin 11.2% (first >10% ever), core FCF ¥290B (+24%). Japan's sovereign AI anchor: NVIDIA Blackwell servers at Kasashima (March 2026), FugakuNEXT prime contractor (RIKEN), MONAKA 1.4nm chip via Rapidus (NEDO funds ~2/3 of ¥58B). Net cash ¥317B. ¥150B buyback (5.76% shares). Mid-term plan May 28 may set >20% ROE target.

Risk

1) Revenue stagnation: -1.3% FY2026, +0.2% guided FY2027 — AI uplift not yet in topline. 2) PE re-rated 12.9x→18x; the 'cheap' entry is gone. 3) Reported NI ¥449B inflated by ~¥146B divestiture gains — recurring NI ~¥303B, FY2027 guided ¥310B. 4) UK Post Office Horizon: £0 contributed to ~£2B redress; no provision; ongoing parliamentary pressure.

Monitoring Trigger

May 28 mid-term plan: if >20% ROE roadmap + AI revenue segment disclosed, ADD to 12%. If FY2027 actual revenue growth >3% by Q2, ADD to 12%. If ROE stays <15% for 2 consecutive quarters, TRIM to 8%. If UK Horizon provision announced, reassess P&L impact immediately.

Key Dates

2026-05-28catalystMid-to-Long-Term Management Plan — new ROE targets, AI revenue roadmap

2026-06catalystKasashima PCB assembly for Blackwell servers begins

2026-H2catalystGovernment sovereign AI procurement contracts

2027catalystFUJITSU-MONAKA 1.4nm tape-out via Rapidus

Update History

2026-05-20evolveHOLD

View report →

FY2026 results: adj. OP ¥390.5B (+27%), margin 11.2%, core FCF ¥290B (+24%). PE re-rated 12.9x→17.95x. ROE 15.8%. FY2027 guidance: adj. OP ¥425B (+8.8%), margin 12.1%. ¥150B buyback.

pe:12.917.95roe:22.7%15.8%op_margin:8.6%11.2%de:59.0%7.0%fcf:+¥390B+¥290Bdiv_yield:1.5%1.79%market_cap:N/A¥5.4T

Key Metrics

17.95

18.12

Fwd PE

3.7

P/B

15.8%

ROE

11.2%

Op Margin

7.0%

D/E

1.79%

Div Yield

+¥290B

FCF

¥5.4T

Mkt Cap

Supply Chain Evidence

Evidence	Customer	Product	Detail
confirmed	NVIDIA	Sovereign AI servers — HGX B300 + RTX PRO 6000 Blackwell	Kasashima Plant: device assembly March 2026, PCB assembly June 2026. NVLink Fusion for MONAKA+NVIDIA full-stack.[source](2026-02-12)
confirmed	RIKEN	FugakuNEXT zettascale supercomputer (prime contractor)	Contract June 2025; target operational ~2030. Hybrid ARM+NVIDIA GPU.[source](2025-06-18)
confirmed	NEDO/METI	FUJITSU-MONAKA 1.4nm AI chip via Rapidus	NEDO funds ~2/3 of ¥58B NPU cost. Demand-creation for Rapidus.[source](2026-Q1)
confirmed	Japan AI Foundation (SoftBank/NEC/Sony/Honda consortium)	Sovereign AI infrastructure	Fujitsu is key infrastructure partner for Japan's sovereign 1T-parameter AI model.[source](2026-04)
confirmed	UK Post Office (RISK)	Horizon IT extension — liability	£41M extension to March 2027; £0 toward ~£2B redress; no provision; lost Centrica deal.[source](2025-10)

Sources & References

↗

Peer Comparison

Company	PE	Fwd PE	ROE	Op Margin	FCF
Fujitsu	17.95	18.12	15.8%	11.2%	+¥290B
NEC Corporation	20.9	17.45	12.1%	11.1%	+¥202B
Sony	17.6	15.1	14.3%	11.6%	+¥1,490B
Honda	10.5	11.71	negative (FY2025 write-down year; normalized ~4-5%)	2.2% (FY2026 guided; FY2025 reported negative due to ¥2.5T EV impairments)	negative (FY2025 write-down); recovery guided FY2026
SoftBank Group	6.7	34.2	N/A (mark-to-market dominated)	N/A	N/A
NTT (Nippon Telegraph & Telephone)	11.7	12	11.0%	12.5%	+¥1.0T+
Nomura Research Institute (NRI)	21.8	24.4	23.0%	7.2%	+¥80B
Nippon Steel			N/A (loss)	N/A	negative (US Steel integration)