Fujitsu Shares Tumble After Weaker-Than-Expected Earnings Forecast

Dow Jones04-30
 

By Jason Chau

 

Shares of Fujitsu tumbled after the Japanese software and IT services company's earnings forecast missed consensus market estimates.

The stock fell over 15% to 3,133 yen, equivalent to $19.53, Thursday morning in Tokyo trading before recouping some losses. The shares were 13% lower at Y3,198 at midday, on track for the largest single-day decline in 11 years.

The company said late Tuesday that its annual revenue for the fiscal year ended March fell 1.3% from the prior year. It also forecast net profit for the current fiscal year to drop 31% from a year earlier.

Its revenue and operating profit guidance of 3.510 trillion yen and 415.00 billion yen, respectively, were below average analyst estimates of 3.678 trillion yen and 431.15 billion yen, respectively, according to polls conducted by LSEG.

Fujitsu's shares didn't trade on Wednesday, as markets in Japan were closed for a holiday.

The stock is down 26% year-to-date, significantly underperforming the broader Nikkei 225 index, which is up 19% over the same period.

Software and IT services stocks have sold off in recent months amid growing investor concerns over AI's disruption to the sector, fueling fears of a 'software apocalypse'.

Fujitsu is seeking to integrate AI agents into its consulting services and is targeting new growth opportunities in physical AI. The firm also announced a share buyback plan of up to 150 billion yen on Tuesday aimed at enhancing shareholder returns and promoting capital efficiency.

 

Write to Jason Chau at jason.chau@wsj.com

 

(END) Dow Jones Newswires

April 29, 2026 23:21 ET (03:21 GMT)

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