NEC Raises First-Half Profit 59.9% to ¥116,439 Million as Revenue Grows
Key Facts
NEC reported higher revenue and profits for the six months ended September 30, 2026, with profit attributable to owners of the parent reaching ¥116,439 million, up 59.9% year over year. Revenue rose to ¥1,753,857 million, an increase of 11.7% from the same period, while operating profit climbed 23.3% to ¥146,154 million. The figures show profit attributable to owners of the parent growing faster than sales, while operating profit also outpaced revenue growth. Kabutan published the results on October 28 in a statement on the company's first-half performance. The reported period is the first half of the fiscal year ending in March 2027, not a period ending in March.
Compared with the six months ended September 30, 2025, profit attributable to owners of the parent rose from ¥72,830 million to ¥116,439 million. The 59.9% annual increase was the fastest growth rate among the items reported for the period, compared with increases of 11.7% in revenue and 23.3% in operating profit. Earnings per share were ¥87.8 in the first half, up 60.6% from the same period. Earnings per share provide another measure of the period's results on a per-share basis, alongside growth in total profit. These comparisons cover only the first half and do not mean that performance in every quarter followed the same pace.
In the second quarter alone, covering July to September 2026, NEC recorded revenue of ¥934,083 million, up 9.4% year over year. Profit attributable to owners of the parent also rose 24.7% to ¥66,741 million. The comparison between the quarter and the first half shows quarterly revenue growth was slower than growth over the six months, with an 11.7% first-half increase versus 9.4% in the second quarter. By contrast, quarterly profit attributable to owners of the parent remained higher, up 24.7%, but below the 59.9% increase recorded for the first half. These figures separate the second quarter's contribution from the six-month result, without assuming that the trend in one alone explains the other.
Quarterly profit growth, however, came alongside a decline in the operating profit margin. The margin was 9.4% in the July-to-September 2026 period, compared with 9.7% in the same period a year earlier. Kabutan said the margin “declined from 9.7% in the same period a year earlier to 9.4%.” This adds another dimension alongside the rise in revenue and profit attributable to owners of the parent: quarterly sales grew, but operating profit as a share of revenue fell year over year. Reading the first-half results therefore requires distinguishing growth in total profit from the movement in the operating margin in the latest reported quarter. The available figures do not provide an explanation for the decline or a breakdown of its factors.
The reported results cover six months of the fiscal year as of September 30, 2026, while the full fiscal year ends in March 2027. First-half figures therefore do not represent results for the full fiscal year, and the end of March 2027 is the fiscal year-end, not the end of the period for which the company reported results. This timeframe puts the year-over-year comparison in context: the current period corresponds to the six months ended September 2025, not a full fiscal year. The available data covered revenue, operating profit, profit attributable to owners of the parent and earnings per share, as well as the second-quarter operating margin. The reported information included no full-year forecast or date for a subsequent results announcement; the next dated milestone in the available information is therefore the fiscal year-end in March 2027.