NTT announced its financial results for fiscal year 2025 on Friday, the 8th. Operating revenue was 14,409.1 billion yen (an increase of 704.4 billion yen year-on-year), and operating profit was 1,706.2 billion yen (an increase of 56.7 billion yen year-on-year). Both revenue and profit increased. Operating revenue reached a new record high. This was attributed to the expansion of corporate businesses at each group company, the expansion of NTT Docomo’s Smart Life business, and increased revenue from the REIT conversion of data centers.

Operating profit increased due to the expansion of corporate businesses at each group company, increased profits from the Smart Life business, and the REIT conversion of data centers, although there were factors such as strengthening Docomo’s customer base and the implementation of measures to improve the quality of the mobile network. The optical business also performed well, with net increases in optical services year-on-year due to strengthened sales of 10 Gigabit plans and bundled plans for apartment buildings.

NTT President Akira Shimada stated, “We expect increased revenue and profits in fiscal year 2026 compared to the previous year. We plan to increase operating revenue across all segments, primarily in our integrated ICT business and global solutions business, aiming for record highs. While we will be affected by the continued decline in network revenue, we plan to increase operating profits year-on-year through the expansion of our smart life business, centered on corporate business and financial services.”

He also announced a medium-term profit growth strategy for fiscal years 2026 to 2030. The growth area is defined as the “Value Area,” and the existing area as the “Connectivity Area,” with profit growth centered on AI, where business expansion is expected.

In the Value Area, taking into account the rapid advancement of AI, we aim to shift from a business model dependent on traditional human resources to one that starts with customer value. By deploying the human resources created by introducing AI to NTT DATA’s broad customer base of NTT docomo Business, we will provide high value-added integration.

By combining the products and services of NTT DATA and NTT docomo Business, we will expand our customer value-driven business by providing a sovereign-compliant, full-stack AI business.
In the connectivity field, we will promote AI-native next-generation infrastructure. We aim to achieve a full-scale business expansion by optimizing various resources such as GPUs, networks, and power, and realizing a secure usage environment including the edge, and an AI-native infrastructure called “AIOWN” that enables integrated operations.
To realize AIOWN, APN will be deployed to all prefectural capitals by FY2027, in conjunction with the equipment upgrade of existing services. Furthermore, by FY2030, we aim to create demand in various industries and expand nationwide.
As an immediate initiative in the connectivity field, we will focus on maintaining cash generation capabilities through profit stabilization.
By FY2030, we aim to achieve EBITDA of 4 trillion yen for the combined value and connectivity fields. Furthermore, we will continue strategic upfront investments in areas with expected growth. Specifically, we will accelerate efforts toward early commercialization, focusing on three areas: “mobility,” “space,” and “optical quantum computing.”

In the mobility sector, we will provide services such as autonomous driving support through NTT Mobility, and further advance efforts toward realizing an infrastructure-cooperative mobility AI and communication platform in collaboration with Toyota.

In the space sector, we will apply IOWN’s technology to build social infrastructure that integrates space and the ground. We will develop businesses mainly in the areas of disaster prevention and security.

In the optical quantum computing sector, in collaboration with OptQC, we will develop a world-class optical quantum computer and aim for early commercialization.

On the same day, NTT DATA Group announced a change in president. Kazuhiko Nakayama, Representative Director and Executive Vice President, will assume the position of president on June 12th. Hiroshi Sasaki, the current Representative Director and President, will assume the position of NTT Vice President on June 18th. Currently, there are approximately 2,000 large corporations in Japan with sales exceeding 100 billion yen. Of these, NTT DATA has about 500 clients, while NTT docomo Business has over 90%.

President Shimada stated, “Both NTT DATA and NTT docomo Business receive similar revenue from large Japanese corporations. NTT DATA’s business style involves deeply engaging with each client, but there is at least three times the market size remaining for NTT DATA. However, we haven’t been able to secure the resources to reach that extent until now. By utilizing AI, we want to secure the availability of system engineers and expand our business to clients we haven’t been able to reach before. It is also extremely important to connect our domestic and global businesses. We are inviting Mr. Sasaki to join NTT Holdings to lead these businesses”.

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