AEON Q1 Operating Profit Jumps 34% to ¥75bn; Swings to ¥13.8bn Net Profit on Record ¥2.94 Trillion Revenue

Operating revenue rose 14.6% to a first-quarter record ¥2,941,981 million and operating profit jumped 33.6% to ¥75,203 million as Japan's largest retail group extended its post-pandemic recovery. Net profit attributable to owners of the parent swung to ¥13,809 million from a ¥6,570 million loss a year earlier, yet management left its full-year targets and ¥15.00 dividend unchanged.

An AEON Mall shopping centre exterior AEON Co., Ltd. · Tokyo Stock Exchange

AEON Co., Ltd. (TSE: 8267), Japan's largest retail group, reported consolidated first-quarter results for the three months to May 31, 2026 (Q1 of the fiscal year ending February 28, 2027) under Japanese GAAP. Operating revenue climbed 14.6% year-on-year to a first-quarter record ¥2,941,981 million from ¥2,567,174 million, while operating profit jumped 33.6% to ¥75,203 million from ¥56,290 million. Ordinary (recurring) profit rose 32.3% to ¥63,582 million, and net profit attributable to owners of the parent came in at ¥13,809 million, swinging back from a ¥6,570 million net loss a year earlier. Basic earnings per share turned positive at ¥4.99 from minus ¥2.54.

A record top line as the group scales

The quarter delivered AEON's highest-ever first-quarter operating revenue, underlining the reach of a group that spans general-merchandise stores and supermarkets, drugstore and health-and-wellness chains, financial services, shopping-mall development through AEON Mall, and services and specialty retail. Double-digit revenue growth fed through to profit with meaningful operating leverage: operating profit rose more than twice as fast as the top line, and ordinary profit advanced by nearly a third, as the group's discount, digital-grocery and private-brand initiatives continued to draw footfall and spending across its formats.

Swing back to a first-quarter profit

The most striking feature of the quarter was the return to profitability at the bottom line. Net profit attributable to owners reached ¥13,809 million, reversing the prior year's ¥6,570 million loss, while comprehensive income swung to ¥20,440 million from minus ¥42,266 million a year earlier — a swing of more than ¥62 billion that reflects both improved operating earnings and more favourable valuation movements. The recovery lifted first-quarter EPS to ¥4.99 from minus ¥2.54.

A low equity ratio that reflects the financial arm

Total assets stood at ¥15,593,500 million and net assets at ¥2,186,571 million, for a group equity ratio of just 7.8%. That figure looks thin for a retailer, but it reflects AEON's large financial-services balance sheet — banking, credit and insurance operations that carry substantial deposits and receivables. Stripping out the financial business, total assets were ¥7,823,837 million and the equity ratio rose to 13.8%, a more representative gauge of the retail operations. Net assets per share were ¥436.64. Per-share figures reflect a 1-for-3 common-stock split that took effect on September 1, 2025, with prior-year comparatives restated on the same basis.

Full-year targets and dividend held

Despite the strong start, AEON left its full-year FY2/2027 guidance unchanged: operating revenue of ¥12,000,000 million (+12.0%), operating profit of ¥340,000 million (+25.7%), ordinary profit of ¥290,000 million (+19.3%), net profit of ¥73,000 million (+0.4%) and EPS of ¥26.39. The dividend forecast was likewise maintained at an interim ¥7.50 and a year-end ¥7.50 — each including a ¥0.50 commemorative payment — for an annual total of ¥15.00. With first-quarter operating profit already representing more than a fifth of the annual target, investors will watch whether the buoyant start prompts an upward revision later in the year.

AEON Co., Ltd. — Q1 FY2/2027 Key Financials (J-GAAP, consolidated)
MetricQ1 FY2/2027Q1 FY2/2026YoY
Operating revenue (¥m)2,941,9812,567,174+14.6%
Operating profit (¥m)75,20356,290+33.6%
Ordinary profit (¥m)63,58248,060+32.3%
Net profit attributable to owners (¥m)13,809-6,570To profit
Comprehensive income (¥m)20,440-42,266To profit
Basic EPS (¥)4.99-2.54To profit
Total assets (¥m)15,593,500
Net assets (¥m)2,186,571
Equity ratio7.8%
FY2/2027 operating revenue guidance (¥m)12,000,000+12.0%
FY2/2027 operating profit guidance (¥m)340,000+25.7%
Annual dividend per share (¥)15.00

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.