Kddi Stock Earnings Reports

KDDI reported Q1 FY2026 revenue growth (operating revenue JPY 1.4363 trillion, +3.4% YoY) while operating income and attributable profit declined slightly (operating income JPY 272.5 billion, -1.6%; profit JPY 171.1 billion, -3.3%), with management saying results are in line with initial guidance. Key drivers and actions: 1) Personal Services: mobile revenues modestly up (JPY 550.6 billion, ARPU JPY 4,340, smartphone net adds +450k). New June pricing and "connected experience" offerings (au 5G Fast Lane, Starlink Direct, Unlimited Data Overseas) have been well received — ~80% of au customers chose the new au value‑linked plan; UQ customers showed stronger uptake of higher‑capacity plans. Management expects stronger second‑half growth and is targeting a >JPY 30 billion full‑year mobile profit increase in Personal Services (requiring ~JPY 40 billion revenue uplift and accelerated smartphone net adds). 2) Promotional and device-related costs weighed on Q1 profit (including a one‑off JPY 7.3 billion reversal last year and ongoing dynamics from device installment programs); management says these factors were anticipated and will gradually normalize. 3) Financial services continued to expand (au Financial Holdings operating income +33% YoY; au Money Activity Plan >1.6 million subscriptions) and KDDI is deepening bank/securities alliances (SBI Securities joining this fall). 4) Business Services: revenue and operating income grew (revenues JPY 349.7 billion, +4.5%; operating income JPY 57.5 billion, +5.4%); growth driven by mobile, security and IoT, while digital BPO and data center showed near‑term softness with expectations to accelerate in H2. Management reiterated focus on growing core telecom revenue and value‑added services, strengthening the telecom+finance synergy, multi‑brand strategy execution, and improved KPI disclosure to show progress to stakeholders.