Nomura HD FY26 Net Revenue +14.5% to ¥2.17trn, Net Profit +6.3% to ¥362bn; Dividend Held at ¥51 Ordinary, No FY27 Guidance

Nomura Holdings, Inc. (TSE: 8604), Japan's largest securities group and one of Asia's few truly global investment banks, released its FY3/2026 consolidated earnings short report (Kessan Tanshin) under U.S. GAAP on April 24, 2026. The release marks the first full fiscal year after the group's 100th-anniversary milestone in FY3/2025. Total revenue was ¥4,758.5 billion, up just 0.5% year-on-year, but the more meaningful net-revenue line (total revenue after financial expenses) jumped 14.5% to ¥2,167.7 billion. Pre-tax profit rose 14.4% to ¥539.8 billion, and profit attributable to Nomura HD shareholders rose 6.3% to ¥362.1 billion (vs. ¥340.7 billion). Basic EPS came in at ¥123.08 (diluted ¥118.99), up from ¥115.30 / ¥111.03. ROE held at 10.1% (vs. 10.0%), preserving the double-digit return that has been Nomura's medium-term target.

Net revenue +14.5% to ¥2.17trn on retail and IB strength

The 14.5% jump in net revenue is the headline number for a securities house, because the gross "total revenue" line is inflated by trading-book pass-through (interest receivable on repos, securities lending, market-making positions) that is offset by an almost equal financial-expense line. The fact that net revenue grew nearly 30 times faster than total revenue (+14.5% vs. +0.5%) signals that the underlying client franchise — retail brokerage commissions, wealth-management fees, M&A and equity / debt underwriting — performed materially better than the prior year, while the firm's funding cost expanded in step with its trading book. The growth confirms the broader thesis that Japan's return-of-the-retail-investor wave (driven by the new NISA framework, sustained equity-market gains and a 25-year-high level of household risk appetite) is translating into structural top-line for the brokerage industry, with Nomura the largest single beneficiary by absolute scale.

Pre-tax profit +14.4%, net profit +6.3% — tax and minority drag

Pre-tax profit of ¥539.8 billion tracked net revenue closely (+14.4% vs +14.5%), reflecting good operating leverage and disciplined cost growth at the operating level. The pre-tax margin on net revenue was 24.9% (vs. 24.9% prior year — essentially unchanged), a healthy reading for a globally diversified investment bank. However, the pass-through to bottom-line net profit was diluted: profit attributable to shareholders rose only 6.3% to ¥362.1 billion, less than half the pre-tax pace. The gap reflects a higher effective tax rate (consistent with stronger profitability in higher-tax overseas jurisdictions, particularly the U.S. franchise) and a larger share of profit attributable to non-controlling interests. Equity-method investment income fell to ¥33.0 billion from ¥52.5 billion, a roughly ¥20 billion headwind that further muted the bottom-line print. Comprehensive income rose 43.8% to ¥480.0 billion as yen weakness lifted the value of overseas net assets.

Balance sheet expansion — ¥62.6 trillion (+10%)

Total assets ended the year at ¥62,645.9 billion, up ¥5,843.7 billion (+10.3%) from ¥56,802.2 billion a year earlier. Shareholders' equity rose to ¥3,707.9 billion from ¥3,470.9 billion, lifting book value per share (BPS) to ¥1,277.99 from ¥1,174.10. Because the asset base grew faster than equity, the shareholders' equity ratio slipped to 5.9% from 6.1% — a normal feature of a brokerage in expansion mode, but worth noting versus the 40%+ equity ratios typical of trading houses and manufacturers. The asset-base expansion was funded principally by financing activities, which provided ¥2,095.9 billion of cash, while operating cash flow was negative ¥843.0 billion and investing cash flow used ¥1,498.9 billion. This pattern — large negative operating and investing flows offset by financing inflows — is characteristic of a securities firm growing its trading book and is not a sign of cash-burn at the franchise level; rather, it reflects increased market-making and client-facing inventory positions.

Dividend held at ¥51 ordinary — centennial special does not recur

The annual dividend for FY3/2026 is ¥51.00 per share (¥27 interim + ¥24 year-end), down from the headline ¥57.00 paid for FY3/2025 (¥23 interim + ¥34 year-end). However, the FY25 ¥34 year-end included a ¥10 commemorative dividend marking the group's 100th-anniversary milestone. On an ordinary-only basis, the dividend has actually increased from ¥47 (¥23 + ¥24 ordinary) to ¥51 (¥27 + ¥24) — a ¥4 per-share lift. Total dividend payout for the year was ¥148.9 billion, equating to a consolidated payout ratio of 41.4% (vs. 49.4% — the higher prior-year figure reflected the centennial special). The 41% payout sits in the middle of the firm's flexible 30%–50% target band and leaves ample retained earnings to fund the larger trading book described above.

No FY27 guidance — Nomura's long-standing policy

In keeping with its long-standing practice, Nomura issued no consolidated earnings forecast for FY3/2027 and no FY27 dividend forecast. The official rationale, restated in this release, is that the company "operates a diversified investment-finance services business in capital markets around the world, in which significant uncertainties exist arising from economic conditions and market environment." This policy puts Nomura in a different position from the trading houses and manufacturers that dominate the Nikkei 225 — the absence of a forward number means investors must lean on the disclosed run-rate, the macro backdrop (Japanese equity flows, U.S. capital-markets activity, FX), and Nomura's separate strategic updates for any forward read. The next major scheduled disclosure event is the Annual General Meeting on June 23, 2026, with the Annual Securities Report (Yuho) due June 22.

JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.