Japan Exchange Group (8697) Q1 2026 earnings summary

Executive summary

• Operating revenue rose 7.7% year-on-year to JPY 43,451 million, driven by higher trading and clearing services revenue.

• Operating income increased 8.3% year-on-year to JPY 25,233 million, and net income attributable to owners grew 8.0% to JPY 17,029 million.

• Growth was led by cash equities trading and system services, partially offset by a slight decline in information services revenue.

• A new revenue breakdown was implemented, aligning with the Medium-Term Management Plan 2027.

Financial highlights

• Trading services revenue up 6.1% year-on-year; clearing services revenue up 24.0%.

• EBITDA for Q1 FY2025 reached JPY 29,865 million, up 6.8% year-on-year.

• Basic earnings per share increased to JPY 16.42 from JPY 15.16 after a 2-for-1 share split.

• Operating expenses increased 8.0% year-on-year, mainly from higher system and other expenses.

• Cash equities average daily trading value rose 7.3% year-on-year to JPY 6.01 trillion.

Outlook and guidance

• FY2025 forecast unchanged: operating revenue expected at JPY 161,000 million (down 0.8% year-on-year), net income at JPY 55,500 million (down 9.2%).

• Dividend per share forecast at JPY 43.0, with a payout ratio of approximately 80%.

• No changes to previously announced earnings or dividend forecasts; payout ratio target remains at least 60%.

• Average daily cash equities trading value forecasted to decrease 12.3% year-on-year.

• Forecast assumes stable trading volumes and values across key product lines.