Kddi Stock Earnings Reports

KDDI reported Q1 fiscal 2026 results broadly in line with guidance: consolidated revenue rose 3.4% to JPY 1.4363 trillion, while operating income decreased 1.6% to JPY 272.5 billion and net profit fell 3.3% to JPY 171.1 billion. Mobile revenues and ARPU showed modest growth (mobile revenue JPY 550.6 billion; ARPU JPY 4,340, +¥60) and smartphone subscriptions increased by ~450k. New consumer pricing and “connected experience” offerings (au 5G Fast Lane, Starlink Direct, Unlimited Data Overseas) have been well received: ~80% of au customers selected the au value-linked plan and ~40% of UQ customers chose the Komikomi plan. Management reiterated a Personal Services target of >JPY 30 billion incremental mobile profit for the full year (requiring ~JPY 40 billion profit improvement on their yardstick), expecting most gains in H2 as service revisions and repricing take effect. Q1 was impacted by elevated sales promotion costs (including a prior-year one-off JPY 7.3 billion reversal), which were factored into the plan. Financial services continue to perform strongly (au Financial Holdings operating income +33% y/y) with planned bank–securities alliances (SBI joining Mitsubishi UFJ e-Smart Securities) to deepen fintech synergies. Business Services showed mixed results: mobile/IoT and security/Facility Solutions are growing, while digital BPO and parts of data center revenue are weak but expected to recover in H2. Churn trends improved in June and into July; management is monitoring market competition and will deploy promotions selectively to support net additions.