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NTT DATA reported solid FY2025 results just as parent company NTT announced plans to take the subsidiary private in a ¥2.37 trillion ($16.4bn) acquisition of the remaining 42.3% stake. The timing suggests NTT plans to capitalise on NTT DATA's (AI driven) growth trajectory. NTT DATA posted 6.2% net sales growth to ¥4.64 trillion and 4.6% operating profit increase to ¥323.9bn, with healthy 10% growth in its domestic Japanese market.
NTT DATA has positioned itself at the intersection of two high-growth markets: AI infrastructure and data centre expansion. It looks like parent NTT's consolidation is designed to support an acceleration of this pivot. For example, the plan to transfer six data center assets to a Singapore REIT suggests a shift toward asset-light operations while maintaining investments in next-generation technologies. Meanwhile, NTT DATA continues expanding its global footprint with major projects in Malaysia and India.
NTT DATA doesn’t split out its UK business in its published results. The UK is a key component of the EMEAL region which has prioritised growth in the UK, Germany, and Spain while investing in Digital BPS, CX, cloud transformation, data analytics, and generative AI services.
Taking NTT DATA private is the latest round in a series of corporate consolidations and restructuring of the group that has been going on for the last three years or so (see NTT and NTT DATA – moving forward together). Whilst its unlikely to change much in the day-to-day operations it may ultimately help provide greater longer term strategic clarity and alignment across the group outside the glare of public markets as the firm looks to capitalise on growing AI demand.
Posted by: Marc Hardwick at 08:17
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