Fujitsu stock fell 16.2% to ¥3,622 on Friday, hitting Japan's daily limit-down circuit breaker after the company reported a sharp earnings miss in its first-half fiscal 2026 results.
Q2 adjusted operating profit dropped to ¥59 billion, down 31.6% year-over-year and well below the market consensus of approximately ¥77 billion. The shortfall stemmed from unprofitable projects and IT services gross margin improvement that fell short of expectations.
Net profit for the first half plunged 68.5% to ¥82.5 billion, partly due to the reversal of subsidiary share-sale gains booked in the prior year.
First-half revenue rose 3.8% year-on-year to ¥1.6263 trillion. Management said approximately 80% of first-half hardware revenue came from orders placed in the previous fiscal year at prices that could not fully absorb subsequent cost increases. Contracts from the current fiscal year have been restructured to align pricing with the latest cost movements.
Fujitsu kept its full-year adjusted operating profit forecast unchanged. The market viewed the second-half delivery hurdle as significantly steeper given the weak interim results.
The Nikkei 225 share average dropped as much as 3% on Friday, led by chip-related stocks, amid mounting concerns over the sustainability of AI investment spending and hawkish signals from the Bank of Japan.