Japan Exchange Group (8697) Q1 2027 earnings summary

Executive summary

• Q1 FY2026 saw significant growth across all major financial metrics, driven by a vibrant Japanese stock market and increased trading activity in cash equities and derivatives.

• Operating revenue for Q1 FY2026 rose 50.8% year-over-year to JPY 65,515 million, with operating income up 73.3% to JPY 43,716 million and net income attributable to owners up 73.6% to JPY 29,567 million.

• Growth was driven by significant increases in trading and clearing services revenue, reflecting higher trading activity in cash equities and derivatives.

• All revenue segments, including trading, clearing, listing, information, and system services, posted strong gains.

Financial highlights

• Trading services revenue surged 60.4% year-over-year to JPY 27,837 million, with transaction fees up 69.9% due to increased cash equities trading value.

• Clearing services revenue jumped 88.9% to JPY 20,150 million; listing services revenue rose 20.2% to JPY 4,519 million; information services revenue increased 15.4% to JPY 9,311 million; system services revenue grew 2.2% to JPY 3,480 million.

• Operating expenses rose 22.4% to JPY 23,146 million, mainly due to higher returns to clearing participants and increased personnel and system costs.

• Basic earnings per share for the quarter was JPY 28.81, up from JPY 16.42 a year earlier.

• Cash equities average daily trading value more than doubled year-over-year to JPY 12.39 trillion.

Outlook and guidance

• FY2026 full-year forecasts were revised upward: operating revenue now expected at JPY 241,500 million (+21.5% YoY), operating income at JPY 145,500 million (+25.1%), net income at JPY 98,500 million (+24.5%), and basic EPS JPY 96.40.

• Dividend per share forecast raised to JPY 77, with a payout ratio of at least 60%.

• Average daily trading value for cash equities forecasted at JPY 10.2 trillion, up 36% from initial guidance.