Dentsu Group (4324) Q2 2026 earnings summary

Executive summary

• H1 FY2026 net revenue rose 3.7% year-over-year to JPY 583.1bn, with organic growth of 0.3%.

• Underlying operating profit increased 6.6% to JPY 72.0bn, and underlying net profit grew 17.9% to JPY 38.2bn.

• Statutory net profit turned positive at JPY 46.3bn, a JPY 119.9bn improvement year-over-year.

• Operating profit reached JPY 83.9bn, aided by gains on the sale of the Dentsu Ginza Building.

• Japan delivered strong growth, while Americas and APAC saw organic declines; EMEA was broadly flat.

Financial highlights

• H1 FY2026 net revenue: JPY 583.1bn (+3.7% YoY); underlying operating profit: JPY 72.0bn (+6.6% YoY); underlying net profit: JPY 38.2bn (+17.9% YoY).

• Operating margin improved to 12.3% (+30bps YoY).

• Statutory net profit: JPY 46.3bn (vs. loss of JPY 73.6bn YoY).

• Underlying EBITDA: JPY 77.2bn (+5.5% YoY).

• Net debt reduced to JPY 83.8bn at end-June 2026.

Outlook and guidance

• FY2026 organic growth guidance: 0–1% (Japan: +3%, Americas: ~-4%, EMEA/APAC: ~+1%).

• Net revenue forecast: JPY 1,230.2bn (+2.7% YoY); underlying operating profit: JPY 166.3bn.

• Operating margin target: 13%.

• Underlying net profit forecast: JPY 85.2bn; underlying basic EPS: JPY 328.21.

• No dividend is forecast for the fiscal year ending December 31, 2026.

• FY2028 targets: 2–3% organic growth, 16% operating margin, no loss-making markets.

• Management notes ongoing global economic uncertainty due to geopolitical risks and rising resource prices.