NTT lifts FY 2027 outlook on DOCOMO strength

Cellular tower above city skyline symbolizing upbeat outlook and higher capex for 9432.T and DOCOMO

Key Points

01NTT (9432.T) raised full-year forecasts for revenue, operating profit and attributable profit for the year ending March 2027
02First-half operating revenue rose 8.7% year on year to a record 7.36 trillion yen
03Operating profit and profit attributable to NTT (9432.T) declined in the first half despite higher revenue
04NTT (9432.T) increased DOCOMO’s profit forecast and lifted planned capex to 2.473 trillion yen

NTT raises full-year guidance on mobile business strength

NTT Inc raised its full-year earnings forecasts for the fiscal year ending March 2027, citing stronger-than-expected performance at its mobile business, NTT DOCOMO. The company now projects operating revenue of 15.08 trillion yen, operating profit of 1.73 trillion yen and profit attributable to NTT of 994 billion yen. These revised figures follow better-than-expected results in its core mobile segment and reflect management’s updated view of earnings for the remainder of the fiscal year.

The upgraded outlook includes a higher group operating profit forecast for NTT DOCOMO, which was raised to 963 billion yen. DOCOMO’s contribution is a key factor behind the improved group guidance, underscoring the importance of the mobile unit within NTT’s broader telecom portfolio. The enhanced forecast comes as data traffic continues to grow, putting greater emphasis on network quality and capacity.

First-half results show revenue growth and profit decline

For the six months ended in September, NTT’s operating revenue rose 8.7% year on year to 7.36 trillion yen, reaching a record high. The revenue increase signals continued demand for NTT’s telecommunications services and related offerings, particularly in mobile communications.

Despite the revenue growth, profitability weakened in the period. Operating profit fell 12.2% to 830.1 billion yen, while profit attributable to NTT declined 16% to 500.2 billion yen. The combination of higher sales and lower profits indicates rising costs or investment burdens during the first half of the fiscal year.

Higher investment plans and shareholder returns

Alongside the upgraded earnings guidance, NTT increased its planned capital investment by 43 billion yen to 2.473 trillion yen. The company cited the need to improve mobile network quality amid growing data traffic, indicating ongoing spending on infrastructure, capacity and service reliability. The enlarged investment plan aligns with the stronger outlook for DOCOMO and the broader mobile business.

NTT also set out its plans for shareholder returns. The company projected an annual dividend of 5.4 yen per share for the fiscal year ending March 2027. In addition, it maintained a share buyback program of up to 200 billion yen through March 2027. These measures signal a continued commitment to returning capital to shareholders while funding substantial network investments.

Key Takeaways

01NTT’s upgraded full-year guidance combines stronger revenue expectations with continued investment in its mobile network, particularly through DOCOMO.
02First-half results highlight a divergence between rising revenue and declining profit, suggesting earnings are under pressure even as demand grows.
03The combination of higher capex, a defined dividend, and a maintained buyback program shows NTT balancing infrastructure needs with shareholder returns.

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