Nomura Q1 FY2027: Net Profit Jumps 39% as All Segments Grow

Nomura Holdings delivered a strong set of numbers for the first quarter of FY2027 (April–June 2026). Gross revenue rose 18.6% year on year to ¥1,371.7 billion, and net revenue after financial costs climbed 31.2% to ¥686.7 billion. Pretax income grew 32.0% to ¥211.5 billion, and net income attributable to shareholders increased 39.2% to ¥145.6 billion, marking double-digit growth at every level.

The top-line expansion was fueled by lively global markets. Trading income surged 61.9% to ¥230.2 billion, and asset management fees jumped 74.5% to ¥162.0 billion. Non-financial expenses also rose, by 30.9% to ¥475.2 billion, due to higher personnel and commission costs, but the revenue gains more than absorbed them.

ROE (annualized) reached 15.4%, up from 12.0% a year earlier, underscoring a clear improvement in profitability. Nomura does not disclose full-year earnings or dividend forecasts, citing market uncertainties, but the first-quarter start was solid, and attention now turns to its sustainability.

All three core business segments posted higher revenue and profit, with Wholesale contributing the largest share. The table below summarizes the main metrics.

Wealth Management revenue rose 37.5% to ¥145.4 billion. Commission income from domestic and overseas retail clients and investment trust sales were robust, while non-financial expenses were contained at a 10.9% increase, driving pretax profit up 83.4% to ¥71.1 billion. Higher interest rates also boosted profitability on yen-denominated deposits.

Investment Management revenue nearly doubled to ¥98.3 billion, benefiting from assets under management reaching a record ¥156.4 trillion at end-June. Performance fees and management fees lifted pretax profit 109.0% to ¥45.0 billion, despite an 83.6% rise in expenses.

Wholesale revenue increased 41.4% to ¥369.1 billion on strong global equity and fixed-income trading. Client activity around rate and currency moves expanded, and pretax profit soared 122.7% to ¥93.3 billion, far outpacing a 25.8% expense rise.

Banking revenue grew 18.7%, delivering a modest profit of ¥3.6 billion. The Other segment recorded a pretax loss of ¥7.0 billion due to deteriorations in economic hedge-related gains and losses.

Total assets at end-June 2026 reached ¥68.22 trillion, up ¥5.58 trillion from the prior quarter, mainly on a ¥2.71 trillion increase in trading assets. Liabilities rose ¥5.44 trillion to ¥64.23 trillion, and total equity edged up ¥138.8 billion to ¥3.99 trillion. The equity ratio slipped 0.3 percentage points to 5.6%, but shareholders' equity attributable to Nomura increased ¥126.4 billion, reflecting accumulated retained earnings.

Nomura has not set a full-year dividend forecast, following the pattern of not disclosing earnings guidance. Still, share buybacks of ¥18.5 billion during the quarter and employee stock issuance of ¥30.6 billion signal attention to shareholder returns and capital efficiency. Cash and equivalents stood at a comfortable ¥485.9 billion (no cash flow statement was disclosed).

Earnings per share jumped to ¥49.90 (diluted ¥48.34) from ¥35.19 a year earlier. Book value per share was ¥1,311.94, raising expectations for a PBR re-rating.

Nomura highlights economic and market uncertainties as key risk factors in its filing. Specific items that bear watching include:

• Sudden changes in market conditions: Sharp moves in rates, currencies, or equities directly affect trading income and investment banking fees. A reversal from the favorable Q1 environment would dent revenue.
• Sustainability of expense growth: Personnel costs (up 27.1% YoY) and commission expenses (up 66.0% YoY) have risen sharply. While manageable during a revenue upswing, delayed cost-cutting in a downturn could squeeze profits.
• Regulatory and geopolitical risks: Tighter global financial regulations or protectionist policies may impact cross-border transactions and product structuring.
• Rapid increase in non-controlling interests: Net income attributable to non-controlling interests surged 263.1% to ¥10.6 billion, meaning a slightly lower proportion of consolidated profit flows to Nomura shareholders.

Although full-year guidance is absent, these factors could weigh on performance if they materialize.