Why is Fujitsu stock crashing today?

Fujitsu's stock plummeted by 16.2% to ¥3,622 on Friday, hitting Japan's daily limit-down circuit breaker after the company's first-half fiscal 2026 results disappointed investors. The adjusted operating profit dropped 31.6% year-over-year to ¥59 billion, far below the market consensus of about ¥77 billion. Net profit for the period plunged 68.5% to ¥82.5 billion, primarily due to unprofitable projects and lower IT services gross margins.

Revenue increased slightly by 3.8% year-on-year to ¥1.6263 trillion. Despite this, underlying earnings power remained relatively stable, according to management. The company maintained its full-year adjusted operating profit forecast, but the market saw the second half of the year as particularly challenging due to the poor interim performance.

The broader Japanese market also suffered, with the Nikkei 225 share average falling by as much as 3% on Friday, driven by chip-related stocks, heightened concerns over the sustainability of AI investment spending, and hawkish signals from the Bank of Japan.