Japan Exchange Group (8697) Q3 2026 earnings summary

Executive summary

• Operating revenue for Q3 FY2025 rose 14.8% year-over-year to JPY 139,626 million, with operating income up 17.1% to JPY 81,308 million and net income attributable to owners up 17.1% to JPY 54,993 million, driven by a vibrant Japanese stock market and increased clearing services revenue.

• The group implemented a new revenue breakdown aligned with its Medium-Term Management Plan 2027, adding system services as a distinct category.

• All revenue categories saw growth, particularly from cash equities and clearing services related to interest rate swap transactions.

Financial highlights

• Trading services revenue grew 11.7% year-over-year to JPY 54,492 million, with cash equities up 18.0% and financial derivatives down 8.1%.

• Clearing services revenue surged 41.1% year-over-year to JPY 36,675 million, mainly from collateral assets related to interest rate swaps.

• Listing services revenue increased 2.3% year-over-year to JPY 12,583 million, with annual listing fees up 7.6%.

• Information services revenue rose 3.7% to JPY 24,843 million, and system services revenue also climbed 3.7% to JPY 10,336 million.

• Operating expenses increased 12.1% year-over-year to JPY 59,581 million, mainly due to higher returns to clearing participants, personnel, and system-related costs.

Outlook and guidance

• FY2025 full-year forecasts remain unchanged: operating revenue JPY 176,000 million, operating income JPY 96,500 million, net income JPY 65,000 million, and EPS JPY 63.09.

• Dividend per share forecast is JPY 50.0, with a payout ratio of approximately 80%.

• Average daily trading value for cash equities forecasted at JPY 6 trillion.

• Full-year forecast for fiscal year ending March 31, 2026, projects operating revenue of JPY 176,000 million (up 8.5% year-over-year) and net income attributable to owners of JPY 65,000 million (up 6.4%).

• Dividend forecast remains unchanged, with a total annual dividend of JPY 50.00 per share, targeting a payout ratio of at least 60%.