Nomura (8604) Q1 2026 earnings summary

Executive summary

• Group net revenue reached ¥523.3 billion, up 16% quarter-over-quarter and 15.2% year-over-year, with all divisions showing revenue and profit growth, aided by a ¥56 billion gain from fixed asset sales and ROE at 12.0%.

• Income before income taxes rose 64% quarter-over-quarter and 55.7% year-over-year to ¥160.3 billion; net income increased 45% quarter-over-quarter and 51.7% year-over-year to ¥104.6 billion.

• EPS was ¥34.04, with annualized ROE at 12%, the highest since FY2020/2021, achieving the 2030 target of 8%-10% ROE for five consecutive quarters.

• Wealth Management saw a 16% increase in flow revenue and recurring revenue assets net inflow for the 13th consecutive quarter, though net revenue fell 3.6% year-over-year.

• Investment Management achieved record-high assets under management at ¥94.3 trillion, with net inflows for the ninth consecutive quarter.

Financial highlights

• Wealth Management net revenue was ¥105.8 billion (+6% QoQ, -4% YoY), with income before income taxes at ¥38.8 billion (+8% QoQ, -6% YoY).

• Investment Management net revenue was ¥50.6 billion (+18% QoQ, +6% YoY), with income before income taxes at ¥21.5 billion (+39% QoQ, -7% YoY).

• Wholesale net revenue was ¥261.1 billion (+1% QoQ, +7% YoY), with income before income taxes at ¥41.9 billion (+12% QoQ, +98% YoY).

• Banking net revenue was ¥12.8 billion (+12% QoQ, +14% YoY), with income before income taxes at ¥3.6 billion (+19% QoQ, -10% YoY).

• Group-wide expenses increased 2% to ¥363.0 billion, with compensation and benefits up 8% due to higher performance-linked bonuses.

Outlook and guidance

• July net revenue in Wealth Management and Wholesale is tracking at or above Q1 levels, with client sentiment improving and recurring revenue assets inflows continuing.

• No earnings or dividend forecasts provided due to uncertainties in global capital markets.

• Management expects Wealth Management to benefit from changing market conditions and sees solid performance in Wholesale, especially in equity products.