# NEC Corporation: business model and financials

> Latest period: FY ending Mar 2026, consolidated, IFRS
> Unit: JPY millions
> Sources: 有価証券報告書－第188期(2025/04/01－2026/03/31) (S100YBFV)
> Page: https://vizora.meequs.com/en/company/nec
> Retrieved: 2026-09-30T18:55:17.382Z

## Company

NEC, founded in 1899, is a company in Smartphones & Communications Equipment listed on TSE Prime. It has 101,800 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | NEC Corporation |
| Ticker | 6701 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/6701.T) |
| Listing | TSE Prime |
| Head office | 東京都港区芝五丁目7番1号 |
| Representative (per filing) | 取締役代表執行役社長兼CEO 森田 隆之 |
| Founded | Jul 1899 |
| Share capital | ¥427.8B |
| Employees (consolidated) | 101,800 |
| Average salary (parent only) | ¥9.9M |
| Fiscal year end | March |
| Website | jpn.nec.com (https://jpn.nec.com/) |
| Corporate number | 7010401022916 |
| EDINET | E01765 |
| Industries (Vizora) | Smartphones & Communications Equipment, IT Services & System Integration, Defense |

> Profile source: annual securities report (S100YBFV, filed 2026-06-18). As of filing

## Five-axis industry profile

Primary industry: IT Services & System Integration (2026-03-31)

| Axis | Industry percentile | Peers |
| --- | ---: | ---: |
| Revenue growth | 18.2 | 157 |
| Profitability | 58.4 | 196 |
| Cash conversion | 80.3 | 185 |
| Efficiency | 15.6 | 196 |

Each axis is shown independently. Missing values are labeled unavailable; no combined score is calculated. Industry rank is not an investment recommendation.

## Key points (generated from figures)

- About 70% of NEC's sales come from IT Services, with Social Infrastructure and Other making up much of the rest.
- Out of every ¥100 of sales, about ¥10 is left as operating profit.
- Revenue changed +4.7% from the prior year, operating profit +40.3%.

## Company structure

- Segment revenue mix: IT Services 70.0%、Social Infrastructure 26.1%、Other 3.9%
- Revenue → net income: ¥3582733000000 → ¥273324000000
- Net income → operating cash flow: ¥273324000000 → ¥438463000000（difference ¥165139000000）
- Main uses of operating cash flow: CapEx ¥91556000000 / dividends ¥40043000000 / buybacks ¥27329000000
- Change in cash: ¥74419000000
Segment shares use total reported segment revenue, which may include inter-segment sales. The cash bridge is operating cash flow minus net income and combines non-cash items and working-capital effects.

## Key figures at a glance

| Metric | Value | Note |
| --- | ---: | ---: |
| Revenue | ¥3.58T |  |
| Operating income | ¥359.9B | Margin 10.0% |
| Net income | ¥270.2B | Margin 7.5% |
| Free cash flow | ¥346.9B |  |
| Largest business | IT Services | of segment revenue 70.0% |
| Employees (consolidated) | 101,800 |  |
| EPS | ¥202.95 |  |
| Diluted EPS | ¥202.95 |  |
| Book value per share | ¥993.15 |  |
| Equity ratio | 49.2% | Derived from disclosed figures |
| Shares outstanding | 1,364,249,000 |  |
| Treasury shares | 35,766,900 |  |
| Shareholders | 204,743 |  |
| Average salary (parent only) | ¥9.9M | Filing company only |
| Cash ratio | 14.8% | Cash ÷ revenue 18.4% |
| Vs. industry median margin | +1.1 pp | IT Services & System Integration |
| ROE | 13.0% | Derived from disclosed figures |
| ROA | 6.2% | Derived from disclosed figures |

## Notable figures

- FY2026, one segment accounts for 82% of positive segment profit
- FY2026, employees -2% while operating income rose 40%
- FY2026, parent-company salary changed +22% over five years

## What changed in 5 years

| Metric | FY ending Mar 2021 | FY ending Mar 2026 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥2994023000000 | ¥3582733000000 | +19.7% |
| Operating income | ¥153759000000 | ¥359913000000 | +134.1% |
| Operating margin | 5.1% | 10.0% | +4.9 pp |
| Employees | 114,714 people | 101,800 people | -11.3% |
| Cash and equivalents | ¥523345000000 | ¥659034000000 | +25.9% |

### Change in segment revenue mix

Span: FY ending Mar 2021 → FY ending Mar 2026. Stable segment keys are connected; unmatched shares are marked as new or reorganized. Shares use total segment revenue.

| Flow | Revenue share |
| --- | ---: |
| 社会公共 → 事業再編・廃止 | 14.2% |
| 社会基盤 → 事業再編・廃止 | 23.1% |
| その他 → その他 | 3.9% |
| その他 → 事業再編・廃止 | 9.0% |
| エンタープライズ → 事業再編・廃止 | 16.8% |
| ネットワークサービス → 事業再編・廃止 | 18.0% |
| グローバル → 事業再編・廃止 | 15.0% |
| 新設・再編 → ITサービス | 70.0% |
| 新設・再編 → 社会インフラ | 26.1% |

Segment revenue source references: 9 (derived)

## Business growth × margin

X-axis: segment revenue CAGR. Y-axis: latest operating margin. Bubble size: latest revenue. CAGR requires at least two comparable years.

| Segment | CAGR span | Revenue CAGR | Latest revenue | Operating margin | Source refs |
| --- | ---: | ---: | ---: | ---: | ---: |
| IT Services | 3 years | +12.7% | ¥2508925000000 | 13.4% | 2 |
| Social Infrastructure | 3 years | -4.2% | ¥935302000000 | 7.9% | 2 |
| Other | 5 years | -18.5% | ¥138506000000 | -3.0% | 2 |

## Income statement（FY ending Mar 2026, consolidated, IFRS）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 3,582,733 | 100.0% | S100YBFV |
| Cost of revenue | 2,401,437 | 67.0% | S100YBFV |
| Gross profit | 1,181,296 | 33.0% | S100YBFV |
| SG&A | 805,555 | 22.5% | S100YBFV |
| Operating income | 359,913 | 10.0% | S100YBFV |
| Pretax income | 398,175 | 11.1% | S100YBFV |
| Income tax | 124,851 | 3.5% | S100YBFV |
| Net income | 273,324 | 7.6% | S100YBFV |
| Net income attributable to owners | 270,228 | 7.5% | S100YBFV |

## Per ¥100 of revenue（FY ending Mar 2026）

| Part | JPY |
| --- | ---: |
| Cost of revenue | 67 |
| SG&A | 23 |
| Operating income | 10 |
| (Ref.) Net income | 8 |

### Margin funnel

Gross margin 33.0% → Operating margin 10.0% → Net margin 7.5%
Derived from reported figures (DERIVED).

## Revenue and profit pattern

Pattern: Revenue and profit up
Revenue growth: +4.7%; Core profit growth: +40.3%
Growth quality: margin-expansion
Operating leverage (core profit growth ÷ revenue growth): 8.66×
Calculated from comparable annual consolidated filings.

## Year over year（FY ending Mar 2025 → FY ending Mar 2026、JPY mn）

| Metric | Prior | Current | Change | % change |
| --- | ---: | ---: | ---: | ---: |
| Revenue | 3,423,431 | 3,582,733 | 159,302 | +4.7% |
| Gross profit | 1,060,556 | 1,181,296 | 120,740 | +11.4% |
| Operating income | 256,497 | 359,913 | 103,416 | +40.3% |
| Net income attributable to owners | 175,183 | 270,228 | 95,045 | +54.3% |
| Operating cash flow | 344,408 | 438,463 | 94,055 | +27.3% |
| Free cash flow | 193,783 | 346,907 | 153,124 | +79.0% |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Mar 2017 | 2,665,035 | — | — | 27,310 | 92,525 | — | S100LLHV |
| FY ending Mar 2018 | 2,844,447 | — | — | 45,870 | 129,981 | — | S100OAPM |
| FY ending Mar 2019 | 2,913,446 | — | — | 39,675 | 64,235 | — | S100R0D0 |
| FY ending Mar 2020 | 3,095,234 | 127,609 | 4.1% | 99,967 | 261,863 | 172,666 | S100LLHV |
| FY ending Mar 2021 | 2,994,023 | 153,759 | 5.1% | 149,606 | 274,907 | 203,971 | S100OAPM |
| FY ending Mar 2022 | 3,014,095 | 132,525 | 4.4% | 141,277 | 147,517 | 76,411 | S100R0D0 |
| FY ending Mar 2023 | 3,313,018 | 170,447 | 5.1% | 114,500 | 152,127 | 74,413 | S100TNFD |
| FY ending Mar 2024 | 3,477,262 | 188,012 | 5.4% | 149,521 | 271,228 | 171,461 | S100VZ85 |
| FY ending Mar 2025 | 3,423,431 | 256,497 | 7.5% | 175,183 | 344,408 | 193,783 | S100YBFV |
| FY ending Mar 2026 | 3,582,733 | 359,913 | 10.0% | 270,228 | 438,463 | 346,907 | S100YBFV |

## People and productivity（FY ending Mar 2026, consolidated, IFRS）

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥35.2M |
| Operating income per employee (consolidated) | ¥3.5M |
| Net income per employee (consolidated) | ¥2.7M |

Employees, revenue and profit are consolidated. Average annual salary is a separate parent-company figure. Calculated from disclosed figures (DERIVED).

| History | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Employees (consolidated) | 117,418 | 118,527 | 105,276 | 104,194 | 101,800 |
| Average salary (parent company) | ¥8.1M | ¥8.4M | ¥8.8M | ¥9.6M | ¥9.9M |
| Average age (parent company) | 43.6 years | 43.5 years | 43.3 years | 42.6 years | 43.1 years |
| Average tenure (parent company) | 18.5 years | 18.1 years | 17.5 years | 16.6 years | 17.3 years |

Year over year: Employees (consolidated) -2.3% · Revenue (consolidated) +4.7%

## Segments（FY ending Mar 2026, consolidated, IFRS、JPY mn）

| Segment | Revenue | Share | Op. income | Op. margin |
| --- | ---: | ---: | ---: | ---: |
| IT Services | 2,508,925 | 70.0% | 336,704 | 13.4% |
| Social Infrastructure | 935,302 | 26.1% | 74,318 | 7.9% |
| Other | 138,506 | 3.9% | -4,146 | -3.0% |

### segmentMix — Revenue and profit mix

Calculated from disclosed figures (DERIVED). Shares use total segment revenue and total positive segment profit respectively. Difference = profit share − revenue share (pt). Inter-segment sales may prevent reconciliation to company revenue.

| Segment | Revenue share | Profit share | Difference (pt) | Margin |
| --- | ---: | ---: | ---: | ---: |
| IT Services | 70.0% | 81.9% | 11.9 | 13.4% |
| Social Infrastructure | 26.1% | 18.1% | -8.0 | 7.9% |
| Other | 3.9% | — | — | -3.0% |

Loss-making segment (excluded from profit shares): Other -4,146 JPY mn

Segment → industry: Social Infrastructure → Smartphones & Communications Equipment / IT Services → IT Services & System Integration / Social Infrastructure → Defense

## Revenue by geography

No geographic revenue breakdown was disclosed.

## Cash flow（FY ending Mar 2026, consolidated, IFRS）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Operating cash flow | 438,463 | 12.2% | S100YBFV |
| Capital expenditure | 91,556 | 2.6% | S100YBFV |
| Free cash flow | 346,907 | 9.7% | 算出 |
| Investing cash flow | 33,686 | 0.9% | S100YBFV |
| Financing cash flow | -417,950 | -11.7% | S100YBFV |
| Dividends paid | 40,043 | 1.1% | S100YBFV |
| Share buyback | 27,329 | 0.8% | S100YBFV |
| Change in cash | 74,419 | 2.1% | S100YBFV |
| Cash and equivalents | 659,034 | 18.4% | S100YBFV |

## Balance sheet

Figures are as of each fiscal year end. Derived values are marked as such in the source column. Lease liabilities are excluded from interest-bearing debt.

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Cash and equivalents | 430,778 | 419,462 | 476,490 | 584,615 | 659,034 | S100TNFD, S100VZ85, S100YBFV |
| Total assets | 3,761,733 | 3,984,050 | 4,227,514 | 4,315,368 | 4,466,784 | S100R0D0, S100TNFD, S100VZ85, S100YBFV |
| Net assets | 1,786,642 | 1,912,724 | 2,089,523 | 2,071,511 | 2,281,887 | S100TNFD, S100VZ85, S100YBFV |
| Share capital | 427,831 | 427,831 | 427,831 | 427,831 | 427,831 | S100R0D0, S100TNFD, S100VZ85, S100YBFV |
| Property, plant and equipment | 540,257 | 563,384 | 510,970 | 580,165 | 564,064 | S100R0D0, S100TNFD, S100VZ85, S100YBFV |
| Goodwill | 335,978 | 355,572 | 392,290 | 393,881 | 450,501 | S100R0D0, S100TNFD, S100VZ85, S100YBFV |
| Current assets | 1,836,690 | 1,995,903 | 2,141,784 | 2,224,994 | 2,459,093 | S100R0D0, S100TNFD, S100VZ85, S100YBFV |
| Total liabilities | 1,975,091 | 2,071,326 | 2,137,991 | 2,243,857 | 2,184,897 | S100R0D0, S100TNFD, S100VZ85, S100YBFV |
| Equity attributable to owners of parent | 1,513,503 | 1,623,817 | 1,915,613 | 1,952,018 | 2,196,578 | S100R0D0, S100TNFD, S100VZ85, S100YBFV |
| Retained earnings | 678,653 | 764,604 | 883,453 | 1,023,945 | 1,216,327 | S100R0D0, S100TNFD, S100VZ85, S100YBFV |
| Treasury stock | -1,906 | -31,588 | -31,097 | -30,725 | -57,584 | S100R0D0, S100TNFD, S100VZ85, S100YBFV |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 15% | S100YBFV |
| Property, plant and equipment | 13% | S100YBFV |
| Intangibles and goodwill | 10% | — |
| Other assets | 62% | S100YBFV |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Other liabilities | 49% | S100YBFV |
| Equity | 51% | S100YBFV |

### Balance sheet history

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Total assets | 3,761,733 | 3,984,050 | 4,227,514 | 4,315,368 | 4,466,784 |
| Equity | 1,786,642 | 1,912,724 | 2,089,523 | 2,071,511 | 2,281,887 |
| Interest-bearing debt | — | — | — | — | — |
| Cash | 430,778 | 419,462 | 476,490 | 584,615 | 659,034 |

## Asset intensity and goodwill

Ratios are derived from reported values. Goodwill is used only when separately reported, never inferred from combined intangible assets.

| Metric | Value | Sources |
| --- | ---: | ---: |
| Asset intensity (fixed assets ÷ revenue) | 15.7% | S100YBFV |
| Fixed assets ÷ total assets | 12.6% | S100YBFV |
| Goodwill ÷ parent equity | 20.5% | S100YBFV |

Goodwill over 4 years: 335,978 → 450,501 JPY; total investing cash flow: -286,461 JPY. This does not imply causation.

### Cash quality

Net cash = cash − interest-bearing debt. Net debt ratio = (interest-bearing debt − cash) ÷ positive operating cash flow. Omit when debt components are incomplete; other ratios are derived from reported figures.

| Metric | Value |
| --- | ---: |
| Cash ratio (cash ÷ total assets) | 14.8% |
| Cash ÷ revenue | 18.4% |
| Net cash (cash − interest-bearing debt) | — |
| Net debt ÷ operating cash flow | — |
| Cash conversion (operating CF ÷ operating income) | 121.8% |
| Cash vs. profit gap | 168,235 JPY mn (of net income 62.3%) |
| Shareholder returns / net income | 24.9% |
| Shareholder returns / FCF | 19.4% |
| Shareholder payments — dividends / net income | 14.8% |
| Shareholder payments — dividends / FCF | 11.5% |
| CapEx intensity (capex ÷ revenue) | 2.6% |
| Investing CF relative to operating CF | 7.7% |

## ROA and ROE

ROE is decomposed into net margin × asset turnover × financial leverage. Leverage can raise ROE, so the ratio alone does not assess a company's condition. Ending balances are used without a prior year; total equity approximates parent equity when unavailable.

| Period | Net margin | Asset turnover | ROA | Financial leverage | ROE | Sources |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| 2022 | 4.7% | 0.80× | 3.8% | 2.49× | 9.3% | S100R0D0 |
| 2023 | 3.5% | 0.86× | 3.0% | 2.47× | 7.3% | S100TNFD |
| 2024 | 4.3% | 0.85× | 3.6% | 2.32× | 8.4% | S100VZ85 |
| 2025 | 5.1% | 0.80× | 4.1% | 2.21× | 9.1% | S100YBFV |
| 2026 | 7.5% | 0.82× | 6.2% | 2.12× | 13.0% | S100YBFV |

## Ownership

| Counterparty | Relation | Ratio | As of |
| --- | ---: | ---: | ---: |
| 日本マスタートラスト信託銀行株式会社（信託口） | Major shareholder | 15.4% | 2026-03-31 |
| 株式会社日本カストディ銀行（信託口） | Major shareholder | 7.8% | 2026-03-31 |
| NTT株式会社 | Major shareholder | 4.9% | 2026-03-31 |
| STATE STREET BANK AND TRUST COMPANY 505001 （常任代理人 株式会社みずほ銀行決済営業部） | Major shareholder | 2.2% | 2026-03-31 |
| 住友生命保険相互会社 | Major shareholder | 2.2% | 2026-03-31 |
| THE CHASE MANHATTAN BANK, N.A. LONDONSECS LENDING OMNIBUS ACCOUNT （常任代理人 株式会社みずほ銀行決済営業部） | Major shareholder | 1.9% | 2026-03-31 |
| GOVERNMENT OF NORWAY （常任代理人 シティバンク、エヌ・エイ東京支店カストディ業務部） | Major shareholder | 1.6% | 2026-03-31 |
| JP MORGAN CHASE BANK 385781 （常任代理人 株式会社みずほ銀行決済営業部） | Major shareholder | 1.4% | 2026-03-31 |
| HSBC HONG KONG-TREASURY SERVICES A/C ASIAN EQUITIES DERIVATIVES （常任代理人 香港上海銀行東京支店セキュリティーズ・サービシズ・オペレーションズ部） | Major shareholder | 1.3% | 2026-03-31 |
| STATE STREET BANK AND TRUST COMPANY 505025 （常任代理人 株式会社みずほ銀行決済営業部） | Major shareholder | 1.2% | 2026-03-31 |

## AI commentary（text by AI; the tables above are authoritative、claude-code）

- Revenue for the FY ending Mar 2026 was ¥3.58T, up 4.7% from ¥3.42T.
- Operating income jumped 40.3% to ¥359.9B from ¥256.5B, far outpacing sales growth.
- Net income attributable to owners rose 54.3% to ¥270.2B.
- Operating cash flow grew 27.3% to ¥438.5B, and free cash flow came to ¥346.9B.

### Drivers

- IT Services sold more to Japanese government agencies, and BluStellar helped lift profitability
- Social Infrastructure grew on higher sales in aerospace and national security, including defense
- Pretax income got a boost from a gain on selling shares of Japan Aviation Electronics Industry

### Risks

- Results depend on the economy, corporate IT spending and telecom carriers' investment
- Quality problems or poorly managed projects could force recalls or compensation to customers
- Cyberattacks are getting more sophisticated, raising the risk of data leaks and service outages

Cited: Annual Securities Report, 188th term (Apr 2025 – Mar 2026) (経営者による財政状態、経営成績及びキャッシュ・フローの状況の分析 (MD&A)); Annual Securities Report, 188th term (Apr 2025 – Mar 2026) (事業等のリスク (Business risks))

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 有価証券報告書－第188期(2025/04/01－2026/03/31) | S100YBFV | 2026-06-18 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100YBFV,, |
| 有価証券報告書－第187期(2024/04/01－2025/03/31) | S100VZ85 | 2025-06-19 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100VZ85,, |
| 有価証券報告書－第186期(2023/04/01－2024/03/31) | S100TNFD | 2024-06-21 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100TNFD,, |
| 有価証券報告書－第185期(2022/04/01－2023/03/31) | S100R0D0 | 2023-06-22 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100R0D0,, |
| 有価証券報告書－第184期(令和3年4月1日－令和4年3月31日) | S100OAPM | 2022-06-22 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100OAPM,, |
| 有価証券報告書－第183期(令和2年4月1日－令和3年3月31日) | S100LLHV | 2021-06-22 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100LLHV,, |

## Key alliances (from the filing's material contracts)

| Partner | Type | Description | Source |
| --- | ---: | ---: | ---: |
| 日本オラクル | Supply/OEM | 販売代理店契約（当社がソフト・ハード・クラウドを供給、NECが販売） | S100YY0V |
| International Business Machines Corporation | Co-development | 情報取扱装置に関する特許の相互実施許諾（クロスライセンス） | S100YBFV |
| Intel Corporation | Co-development | 情報取扱装置に関する特許の相互実施許諾（クロスライセンス） | S100YBFV |
| Microsoft Corporation | Co-development | 情報取扱装置に関する特許の相互実施許諾（クロスライセンス） | S100YBFV |

## Definitions

- Amounts are in millions of JPY (rounded). The period is stated in each table heading
- Operating margin = operating income ÷ revenue. Net income is attributable to owners of the parent when disclosed
- Free cash flow (FCF) = operating cash flow − capital expenditure
- ¥100 model = breakdown per ¥100 of revenue (rounded so parts sum to 100)
- Segment revenues include inter-segment sales and may not sum to consolidated revenue
- Source IDs are EDINET document IDs (docID). "算出" (derived) means computed from other disclosed values
- All figures are extracted mechanically from filings. AI-written text never generates figures
- Source: company filings submitted to EDINET (Financial Services Agency of Japan). Figures were extracted, edited and processed, and charts and text were created, by Vizora — not by the FSA (used under the Public Data License v1.0).