NTT revises strategy to chase AI growth and higher returns
Nippon Telegraph and Telephone revised its medium-term financial targets, setting a consolidated EBITDA goal of 4 trillion yen and a return on invested capital of 5.5% by fiscal 2030. The Japanese telecom giant excluded financial businesses from these targets and cited a more competitive environment and rising network traffic as reasons for the overhaul.
The company plans to pursue three main growth areas: expanding AI-related services for corporate clients in Japan, scaling data center operations overseas, and deepening personal finance offerings. NTT will also transition its connectivity business to what it calls AIOWN infrastructure, designed to handle GPU workloads, network demands, and power requirements.
Management tied executive compensation more closely to business performance. Starting in fiscal 2026, director and officer bonuses will weight EBITDA, earnings per share, ROIC, and capital expenditures more heavily. The company also added sustainability metrics to incentive formulas, including customer and employee engagement, greenhouse gas emissions, and the promotion of women into management roles.
The shift reflects NTT's bet that AI-native infrastructure and services will drive returns in a crowded market. Analysts currently rate the stock a Hold with a price target of 160 yen.
For strategy leaders overseeing digital transformation, NTT's approach offers a case study in how established telecom operators are repositioning around AI. Learn more about AI for Executives & Strategy and how Generative AI and LLM are reshaping enterprise infrastructure.
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