Fujikura’s Missed Target Sinks Shares Despite Record Profit and Dividend Hike

Fujikura posts record profit and revenue, but shares tumble 8.4% after cautious guidance of ¥156bn net profit misses ¥208bn consensus, despite dividend hike and AI expansion plans.

Japan’s Fujikura posted a net profit jump of 72.5% to 157.2 billion yen on revenue of 1.18 trillion yen for the year ended March — both all-time highs. The market, however, was looking ahead rather than back. Shares tumbled 8.43% to 5,819 yen on Friday, wiping out earlier gains that had pushed the stock to a fresh yearly high.

The sell-off was triggered by a guidance shortfall that cut deeper than the headline numbers. Management guided for net profit of just 156 billion yen in the current fiscal year, well shy of the analyst consensus of roughly 208 billion yen. The cautious outlook, which the board attributed partly to potential supply-chain disruptions in the Strait of Hormuz, left little room for error at a multiple of nearly 67 times earnings — far above the sector average of 15.2 and even above an estimated fair value of 51.1.

Dividend sweetener fails to soothe

To soften the blow, Fujikura lifted its year-end dividend proposal to 130 yen per share from the previously flagged 120 yen, which would bring total payouts to 35.9 billion yen. The payment is scheduled for June 29, and the figures reflect the pre-split situation. A six-for-one stock split took effect on April 1.

The payout has more than doubled over the past three years, yet the dividend payout ratio remains a modest 14.2%. Even with the increase, the nominal dividend per share will be smaller after the split, offering limited yield relief for investors who had pushed the stock to aggressive valuation levels.

AI infrastructure push remains the key catalyst

Beyond the quarterly disappointment, Fujikura is pressing ahead with an ambitious expansion plan that could total 300 billion yen across Japan and the United States. The board approved on May 14 the construction of a new plant in Sakura, Chiba Prefecture, at a cost of up to 40 billion yen, alongside the establishment of a wholly-owned US subsidiary.

The new facility will focus on fiber optic cables for data centres powering generative AI, and the company aims to roughly triple its capacity for fiber optic, SWR and WTC cables in the two countries. The move builds on a Japan-US government agreement and a framework with the US Department of Commerce.

What happens next

Fujikura’s annual general meeting is set for June 26, 2026, where the US investment plan will be a key agenda item. Three days later the dividend will be paid. With the stock now sitting at a support level near Friday’s close, the next weeks will test whether the AI infrastructure narrative can keep the high multiple intact — or whether the cautious guidance weighs further on sentiment.