Investing.com-- Fujitsu (TYO:6702) shares slumped 16% on Friday after the Japanese technology company reported weaker profit for the first half of fiscal 2026, as rising component costs and increased research and development spending weighed on earnings.
The company's adjusted operating profit fell 6.1% to 113.9 billion yen ($720 million) in the six months ended September, despite revenue rising 3.8% to 1.63 trillion yen, Fujitsu reported on Thursday.
Shares of the company fell 16.2% to 3,622.0 yen by 04:26 GMT.
Hardware Solutions profit dropped 64% to 4.5 billion yen as higher memory chip costs squeezed margins, while profit in its Ubiquitous Solutions business fell 38.3% amid a pullback in demand for Windows 10-related upgrades.
Increased investment in advanced technologies, including next-generation CPUs and quantum computing, also weighed on profitability.
Service Solutions, Fujitsu's core business, provided some support, with revenue rising 5.9% and adjusted operating profit increasing 11.8% to 133.7 billion yen, driven by demand for its Uvance digital transformation offerings.
Fujitsu maintained its full-year forecast for adjusted operating profit of 425 billion yen and revenue of 3.51 trillion yen, implying a stronger second-half performance will be needed to meet its earnings target.
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