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Dentsu Group (4324) investor relations material
Dentsu Group Q2 2026 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
H1 FY2026 net revenue rose 3.7% year-over-year to JPY 583.1 billion, with organic growth of 0.3% and underlying operating profit up 6.6% to JPY 72.0 billion.
Statutory net profit turned positive at JPY 46.3 billion, reversing a prior year loss, aided by asset sales.
Japan delivered strong organic growth of 5.0%, while Americas and APAC saw organic declines and EMEA was broadly flat.
The midterm plan focuses on profitability, cost reduction, and AI-driven transformation.
Q2 2026 saw consolidated organic growth broadly flat, with operating margin at 11.9%, slightly above expectations.
Financial highlights
Operating margin improved to 12.3% for H1 FY2026, up 30bps year-over-year.
Underlying basic EPS was JPY 147.29, up 17.8% year-over-year.
Statutory operating profit was JPY 83.9 billion, net profit JPY 46.3 billion, including one-off gains from asset sales.
Net debt reduced to JPY 83.8 billion at end-June 2026.
Cash flow from operations reached JPY 95.1 billion in H1.
Outlook and guidance
Full-year 2026 organic growth guidance reiterated at 0%-1%, with operating margin target of 13%.
Japan's full-year organic growth forecast raised to just over 3%; Americas revised down to circa -4%.
Net revenue forecast: JPY 1,230.2 billion; underlying operating profit: JPY 166.3 billion.
Basic EPS for the year projected at JPY 268.50.
Midterm plan targets 2%-3% organic growth and 16% operating margin by 2028.
- Q1 FY2026 delivered strong profit growth and margin gains, led by Japan and asset sales, with guidance unchanged.4324
Q1 2026 - Goodwill impairment drove a net loss despite strong Japan growth; no dividends planned.4324
Q4 2025 - Profit guidance raised as Japan posts record results, but impairments drive net loss.4324
Q3 2025 - Goodwill impairment and international headwinds led to a net loss, despite strong Japan growth.4324
Q2 2025 - ESG-linked pay, board reforms, and climate and talent strategy drive value and sustainability.4324
ESG Update - Guidance cut as CXM weakness offsets Japan's record revenue and modest Q3 growth.4324
Q3 2024 - Q2 2024 marked a return to growth, margin expansion, and reaffirmed full-year guidance.4324
Q2 2024 - Japan's growth and cost controls drove profit gains, offsetting CXM headwinds and supporting guidance.4324
Q1 2025 - Revenue grew but goodwill impairment drove a net loss; Japan excelled, CXM lagged.4324
Q4 2024
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