Nomura Holdings (NMR) Earnings Date & Reports

Key Takeaways

• Net income rose 13% year-over-year to ¥103.7 billion (about $657 million), but fell 29% from the prior record quarter and came in below the ¥109.1 billion analyst consensus.
• Net revenue grew 18% year-over-year to ¥607.5 billion, with gains across all four core business units.
• Wealth Management was the standout: revenue climbed 22% to ¥141.5 billion and pre-tax income jumped 44% to ¥65.6 billion.
• Recurring revenue hit an all-time high of ¥66.7 billion, while net inflows into recurring revenue assets reached a record ¥755.4 billion.
• Wholesale pre-tax income fell 51% from the prior quarter as Global Markets cooled, partly offset by stronger investment banking.
• The interim dividend was raised to ¥35 per share (from ¥27 a year ago), and first-half return on equity (ROE) came in at 13.3%.
• For deeper coverage, review Nomura's Major News, Today's Price Move, Price Targets, and Forecast on additional pages.
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Earnings Context and Why It Matters

Nomura Holdings, Japan's largest brokerage and investment bank, reported results for its fiscal second quarter of 2027, the three months ended September 30, 2026. The report matters because it tests whether the firm can sustain momentum after a record first quarter, particularly as global market activity cooled and interest-rate uncertainty rose in both Japan and the U.S. Investors are closely watching the company's multi-year shift toward stable, fee-based revenue, a strategy designed to reduce reliance on volatile trading income. With the Bank of Japan having delivered 50 basis points of rate hikes in 2026, the quarter also offered a fresh read on how rising yen rates are reshaping Nomura's wealth and banking franchises.

Reported Results

Nomura reported net income attributable to shareholders of ¥103.7 billion (roughly $657 million) for the fiscal second quarter, up 13% from ¥92.1 billion a year earlier but down 29% sequentially from the record first quarter. The result missed the ¥109.1 billion average of five analyst estimates compiled by Bloomberg.

Group net revenue rose 18% year-over-year to ¥607.5 billion (about $3.9 billion), though it declined 12% from the prior quarter. Income before income taxes was ¥148.0 billion, up 8% year-over-year but down 30% quarter-over-quarter. Diluted earnings per share for the period came to ¥34.61.

Wealth Management led the way, with net revenue up 22% year-over-year to ¥141.5 billion and pre-tax income up 44% to ¥65.6 billion. Recurring revenue reached a record ¥66.7 billion, and net inflows into recurring revenue assets hit an all-time high of ¥755.4 billion. Investment Management net revenue rose 39% to ¥84.8 billion, while Wholesale pre-tax income declined from an exceptionally strong first quarter. Nomura declared an interim dividend of ¥35 per share, up from ¥27 a year earlier, and reported a 13.3% ROE for the first half.

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Market Reaction and Investor Sentiment

The market's response was muted, reflecting a quarter that was solid year-over-year but softer than the record-setting prior period and slightly below consensus on the bottom line. In Tokyo, Nomura shares closed up 0.17% at ¥1,441.5, while the U.S.-listed ADR finished up 1.33% at $9.11. The relatively flat reaction suggests investors had largely priced in a moderation from the first quarter and were reassured by the continued strength in wealth management and recurring revenue, even as profit landed modestly below expectations.

Forward Outlook and Key Factors to Monitor

Looking ahead, investors will be watching whether Nomura can keep building its recurring revenue base as a buffer against trading volatility. The record ¥755.4 billion in recurring revenue asset inflows and an all-time high in recurring revenue indicate that the firm's wealth and asset management push is gaining traction, a theme management has emphasized as central to its business transformation.

Rising interest rates in Japan present a mixed picture. Higher yen rates have boosted bond sales and banking income, but they have also introduced uncertainty and prompted some retail investors to adopt a wait-and-see stance on certain products. How the Bank of Japan's policy path evolves will remain a key swing factor for both the wealth and wholesale businesses.

In the wholesale segment, the challenge is sustaining investment banking momentum while Global Markets activity normalizes from elevated levels. Management has pointed to diversification of wholesale revenue as a priority. Progress toward the company's raised ROE target of 10% to 12% or higher toward 2030, and the stability of the recurring revenue cost coverage ratio, will be important markers of whether the shift toward more predictable earnings is translating into durable profitability.

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