Introduction#

Nomura Holdings has released its earnings report for the fourth quarter of 2026, showcasing impressive financial results for the second consecutive year. Despite achieving record net income, the company's stock price experienced a decline in pre-market trading, raising questions among investors.

Company Performance#

For the fiscal year ending in March 2026, Nomura Holdings reported a remarkable 15% increase in group net revenue, totaling JPY 2,167.7 billion. This growth was largely driven by strong performances in its Wealth Management and Wholesale divisions. However, the fourth quarter saw a 19% decrease in net income compared to the previous quarter, primarily due to impairments and geopolitical challenges.

Financial Highlights#

  • Group Net Revenue: JPY 2,167.7 billion, up 15% year-over-year (YoY)
  • Income Before Income Taxes: JPY 539.8 billion, up 14% YoY
  • Net Income: JPY 362.1 billion, up 6% YoY
  • Earnings Per Share: JPY 24.34 in Q4
  • Return on Equity (ROE): 10.1%

Market Reaction#

Despite the strong annual results, Nomura's stock price fell by 2.66% in pre-market trading, dropping to $8.05. This decline reflects investor concerns regarding the decrease in profitability during the quarter and ongoing external factors affecting the company's performance.

Outlook & Guidance#

Looking ahead, Nomura Holdings remains optimistic about its future, focusing on expanding its recurring revenue model in Wealth Management and exploring opportunities in private credit and asset management. The company anticipates steady revenue growth in the upcoming fiscal years.

Risks and Challenges#

Nomura faces several challenges, including geopolitical tensions in the Middle East that could impact market stability, impairment losses in investment management, and ongoing regulatory changes affecting costs. Additionally, market volatility and exchange rate fluctuations may influence client sentiment and foreign product sales.

Executive Commentary#

CEO Kentaro Okuda highlighted the company's record-breaking performance, emphasizing the strength of its core business divisions and the commitment to addressing future challenges.