NEC Corp. Reports 11.7% Revenue Increase, Raises Full-Year Outlook

NEC Corporation announced a revenue increase of 11.7% year-over-year for the first half of fiscal 2027, reaching ¥1.7539 trillion. This growth was fueled by robust performance in both its IT services and social infrastructure segments, coupled with the positive impact of its recent acquisition of CSG Systems International. Non-GAAP operating profit for the period rose to ¥188.3 billion, an increase of ¥60.8 billion compared to the same period last year.

The company’s IT services division benefited from the expansion of its BluStellar platform and improvements in profitability, while the social infrastructure segment continued to perform well, particularly in the aerospace, defense, and ocean systems sectors. The inclusion of CSG’s financial results significantly contributed to the overall revenue and profit gains. NEC has adjusted its full-year forecast, now projecting a Non-GAAP operating profit of ¥460 billion, up from a previous estimate of ¥430 billion.

NEC’s financial position remains strong, with key financial indicators showing improvements. The company highlighted its ongoing initiatives in areas like generative AI and the expansion of its global presence in the undersea cable market with its Petal system, capable of 1Pb/s transmission. These investments aim to capitalize on the growing demand for high-capacity data transmission driven by AI and cloud computing.

Looking ahead, NEC is focused on strengthening its overseas IT services business and leveraging its technological advancements to drive future growth. The revised full-year outlook reflects the company's confidence in its ability to navigate the evolving market landscape and deliver sustained value to shareholders. The company’s strategic focus on AI and high-capacity communication technologies positions it to capitalize on emerging opportunities in the global technology sector.