NEC Corporation NECPY

Information TechnologySoftware & IT ServicesJapan

Last close 16.50 USD on Nov 1, 2026, −6.0% year to date

Quant rating

Quant rating B Rank 30 of 200 in Information Technology

Growth C 99 of 200
Valuation A 11 of 200
Quality B 53 of 200
Revisions B 31 of 200
Momentum C 97 of 200

Wall Street consensus Buy (1.75)Average target 40.52 USD +145.7%

Historical valuation

Multiples use consensus estimates for the next twelve months. The dashed line is the 5-year average.

Key data

Market cap: 42.0B
Enterprise value: 44.3B
52-week range: 10.78 – 21.24
3-year range: 10.78 – 21.24
Dividend yield: 0.78%
Beta (5 years): –
Shares outstanding: 1,364M
Next earnings: Jan 30, 2027

About the company

NEC Corporation is a Japan-based company mainly engaged in the information technology (IT) services and social infrastructure businesses. The Company operates through two business segments. The IT Services segment provides system integration (system construction and consulting), support (maintenance), outsourcing and cloud services, and system equipment and software services. The Social Infrastructure segment provides network infrastructure (core networks, cell phone base stations, optical transmission systems), software and services for telecommunications carriers, and system equipment, system integration (system construction and consulting) and support (maintenance) in the aerospace and defense domain. It also engages in the development, manufacturing, and sales of system equipment.

Growth and profitability fiscal year ends March 31

Growth and profitability by fiscal year
	2026	2025	2024	2023	2022	5Y avg
Revenue (mil)	22,574	22,830	22,981	24,949	24,775	–
Revenue growth	−1.1%	−0.7%	−7.9%	0.7%	−8.4%	−3.6%
EPS (basic, normalized)	1.27	0.93	0.71	0.62	0.79	–
EPS growth	37.3%	30.6%	13.8%	−21.4%	–	–
Gross margin	33.0%	31.0%	28.9%	28.9%	29.4%	30.2%
Net margin	7.5%	5.1%	4.3%	3.5%	4.7%	5.0%
ROE	13.0%	9.1%	8.4%	7.3%	10.0%	9.6%

Balance sheet, last quarter
Cash & short-term investments (mil)	3,106
Current ratio	1.36x
Long-term debt (mil)	2,866
Net debt (mil)	2,326
Total equity (mil)	14,321
Net debt / equity	0.16x
Net debt / EBITDA	0.65x

Estimates and valuation

Consensus estimates and implied multiples
	Sales (mil)			EBITDA (mil)			EPS
Fiscal year	Mean est.	Growth	EV/Sales	Mean est.	Growth	EV/EBITDA	Mean est.	Growth	P/E
2026 actual	22,574	−1.1%	2.0x	3,561	+23.5%	12.4x	1.27	+37.3%	13.0x
2027	24,647	+9.2%	1.8x	3,867	+8.6%	11.5x	1.48	+16.4%	11.1x
2028	25,886	+5.0%	1.7x	4,322	+11.8%	10.2x	1.69	+14.5%	9.7x
2029	27,096	+4.7%	1.6x	4,572	+5.8%	9.7x	1.88	+11.1%	8.8x

Estimate revisions

Change in consensus estimates over 1, 3 and 6 months
	Sales				EPS
Fiscal year	Estimate (mil)	1M	3M	6M	Estimate	1M	3M	6M
2027	24,647	+1.0%	+5.2%	+3.1%	1.48	+1.4%	+6.9%	+7.8%
2028	25,886	+1.0%	+5.1%	+3.2%	1.69	+1.4%	+6.1%	+10.2%
2029	27,096	+0.7%	+5.9%	+2.0%	1.88	+1.0%	+6.7%	+10.5%

Earnings surprises EPS beat in 4 of the last 4 quarters

Reported results versus consensus, last 10 fiscal quarters
Quarter ended	Mar 2024	Jun 2024	Sep 2024	Dec 2024	Mar 2025	Jun 2025	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Sales reported (mil)	1,083,986	690,296	796,380	835,133	1,101,622	715,658	854,121	852,538	1,160,416	819,774
Sales mean (mil)	1,046,017	689,261	827,282	816,043	1,077,530	693,174	826,825	853,643	1,151,359	732,671
Surprise	+3.6%	+0.2%	−3.7%	+2.3%	+2.2%	+3.2%	+3.3%	−0.1%	+0.8%	+11.9%
EPS reported	86.68	−4.38	14.48	43.59	77.80	14.49	40.15	52.09	96.39	37.47
EPS mean	62.67	−1.78	22.31	27.55	67.56	5.60	33.35	40.48	90.18	19.30
Surprise	+38.3%	−146.0%	−35.1%	+58.3%	+15.2%	+158.8%	+20.4%	+28.7%	+6.9%	+94.1%

Peer comparison Software & IT Services

Peers in the same industry group, by market capitalization
Company	Market cap	Net debt/EBITDA	Net margin	P/B	FY1 P/E	FY2 P/E	FY1 EV/EBITDA	FY2 EV/EBITDA
NECPY NEC Corporation	42.0B	0.65x	7.5%	2.86x	11.1x	9.7x	11.5x	10.2x
ROP Roper Technologies, Inc.	46.2B	2.99x	19.4%	2.41x	20.9x	19.0x	16.6x	15.5x
SE Sea Ltd	42.1B	−1.96x	6.9%	3.52x	24.7x	17.9x	9.6x	7.5x
FJTSY Fujitsu Limited	40.0B	−0.84x	8.7%	3.07x	25.6x	21.2x	–	9.4x
ZS Zscaler, Inc.	38.8B	−2.04x	−1.9%	14.93x	48.7x	42.4x	33.5x	27.5x
DASTY Dassault Systemes SE	37.9B	−0.39x	19.2%	3.47x	17.5x	16.4x	14.5x	13.6x
Mean		−0.26x	10.0%	5.04x	24.8x	21.1x	17.1x	14.0x
Median		−0.62x	8.1%	3.27x	22.8x	18.4x	14.5x	11.9x

Technical analysis

1M−3.0%
3M+10.8%
1Y−11.5%
3Y−11.2%

Financial statements in millions of USD

Income statement in millions of USD, fiscal years

Income statement, NEC Corporation, fiscal years, most recent first
	2026	2025	2024	2023	2022	2021
Total revenue	22,574	22,830	22,981	24,949	24,775	27,046
Cost of revenue	15,131	15,758	16,333	17,733	17,489	19,267
Gross profit	7,443	7,073	6,648	7,216	7,286	7,779
Selling, general & administrative expenses	5,076	5,185	5,380	5,977	6,271	6,621
Research & development	–	–	–	–	–	–
Interest expense (income), operating	–	–	–	–	–	–
Unusual expense (income)	99.7	146	24.1	−5.5	−135	−76.1
Other operating expenses	25.9	31.9	1.3	−10.8	−9.7	−155
Operating income	2,242	1,711	1,243	1,255	1,159	1,389
Net interest income (expense)	136	−85.3	−3.7	−9.3	42.6	21.9
Gain (loss) on sale of assets	141	–	–	–	10.3	30.4
Other non-operating income (expense)	−9.2	−26.3	−16.1	16.5	−24.7	−15.5
Net income before taxes	2,509	1,599	1,223	1,263	1,187	1,426
Provision for taxes	787	368	134	272	−101	−36.4
Minority interest	−19.5	−63.2	−101	−128	−127	−111
Equity in affiliates	–	–	–	–	–	–
U.S. GAAP adjustment	–	–	–	–	–	–
Net income before extraordinary items	1,703	1,168	988	862	1,161	1,351
Extraordinary items	–	–	–	–	–	–
Net income	1,703	1,168	988	862	1,161	1,351
EBIT, normalized	2,342	1,856	1,267	1,250	1,024	1,313
EBITDA, normalized	3,581	3,189	2,724	2,889	2,731	3,040
Basic EPS, normalized	1.27	0.93	0.71	0.62	0.79	–

Balance sheet in millions of USD, fiscal years

Balance sheet, NEC Corporation, fiscal years, most recent first
	2026	2025	2024	2023	2022	2021
Assets
Cash & short-term investments	4,332	3,964	3,253	3,278	3,685	4,814
Receivables	8,945	8,392	8,257	8,601	8,287	9,131
Total inventory	1,079	1,232	1,604	2,015	2,024	1,676
Prepaid expenses	1,020	1,069	902	969	–	–
Other current assets	120	180	140	168	1,101	1,189
Total current assets	15,494	14,838	14,155	15,031	15,097	16,810
Property, plant & equipment	3,554	3,869	3,377	4,243	4,441	4,997
Goodwill	2,839	2,627	2,593	2,678	2,762	2,715
Intangibles	2,325	2,347	2,457	2,848	3,080	3,332
Long-term investments	1,746	2,190	2,056	2,170	2,573	2,563
Note receivable	–	–	–	–	–	–
Other long-term assets	2,187	2,908	3,302	3,033	2,968	2,723
Total assets	28,144	28,779	27,939	30,003	30,920	33,140
Liabilities
Accounts payable	2,529	2,759	2,808	3,255	3,250	3,787
Payable/accrued	–	–	–	–	–	–
Accrued expenses	2,018	2,030	2,024	2,136	1,909	1,951
Short-term debt	87.1	1,063	163	333	676	370
Current portion of long-term debt	583	847	745	1,007	1,266	524
Other current liabilities	4,637	4,194	3,972	3,552	3,864	4,185
Total current liabilities	9,854	10,893	9,711	10,283	10,965	10,818
Long-term debt	2,412	2,534	2,719	3,242	2,968	5,455
Minority interest	538	797	1,149	2,176	2,245	2,292
Other liabilities	1,500	1,537	1,700	2,073	2,301	2,758
Total liabilities	14,304	15,761	15,279	17,774	18,480	21,323
Shareholders' equity
Preferred stock	–	–	–	–	–	–
Common stock	2,696	2,853	2,828	3,222	3,517	3,865
Additional paid-in capital	–	311	1,107	1,243	1,390	1,526
Retained earnings (accumulated deficit)	7,664	6,829	5,839	5,758	5,578	5,101
Treasury stock	−363	−205	−206	−238	−15.7	−14.3
Other equity	3,844	3,229	3,093	2,244	1,971	1,339
Total equity	13,840	13,018	12,660	12,228	12,440	11,817
Total liabilities & shareholders' equity	28,144	28,779	27,939	30,003	30,920	33,140

Cash flow statement in millions of USD, fiscal years

Cash flow statement, NEC Corporation, fiscal years, most recent first
	2026	2025	2024	2023	2022	2021
Operating activities
Net income	2,509	1,599	1,223	1,263	1,187	1,426
Depreciation, depletion & amortization	973	1,057	1,240	1,380	1,484	1,514
Deferred taxes	–	–	–	–	–	–
Non-cash items	−80.6	83.0	79.6	11.0	−61.7	−52.3
Changes in working capital	−639	−442	−750	−1,508	−1,397	−367
Cash from operations	2,763	2,297	1,793	1,146	1,213	2,521
Investing activities
Capital expenditures	−577	−1,005	−659	−585	−584	−641
Other investing cash flows	789	130	157	212	63.5	−466
Cash from investing	212	−875	−502	−373	−521	−1,107
Financing activities
Financing cash flow items	−823	−788	−66.0	−69.1	−55.4	255
Cash dividends paid	−252	−231	−203	−215	−224	−192
Issuance (retirement) of debt, net	–	–	–	–	–	–
Other financing cash flows	−1,558	326	−759	−641	−1,279	−50.2
Cash from financing	−2,633	−693	−1,028	−925	−1,559	12.6
Foreign exchange effects	127	−7.6	114	67.3	106	55.3
Net change in cash	469	721	377	−85.2	−761	1,482
Free cash flow	2,186	1,292	1,133	560	628	1,880

Disclaimer

The financial data presented in this report is delayed and obtained from sources QDD Research believes to be reliable, including stock exchanges, SEDAR, and EDGAR. However, no representation or warranty is made as to the accuracy, completeness, or timeliness of the information. QDD Research accepts no liability for any errors, omissions, or financial losses arising from the use of this data.

This report is generated using a fully systematic and quantitative approach. All factor scores and the overall quant rating (ranging from D to A+) are derived from algorithmic models and are based solely on objective financial metrics. These scores are intended for informational purposes only and should not be interpreted as investment advice or a recommendation to buy, sell, or hold any securities.

QDD Research is not a registered investment advisor or broker-dealer and does not provide personalized financial advice. The content is not tailored to the specific investment goals, financial situation, or risk profile of any individual investor. We strongly encourage readers to consult with a licensed broker or investment advisor before making any investment decisions based on the information contained in this report.

Live quote provided by TradingView. Report data updated Nov 1, 2026 after market close.