Rakuten Group: Mar Q Results: Broad-Based Profit Growth; Strong Fintech and Solid Mobile: Upcoming Events Potentially Positive

Research evidence excerpt

Rakuten Group: Mar Q Results: Broad-Based Profit Growth; Strong Fintech and Solid Mobile: Upcoming Events Potentially Positive

Update

May 14, 2026 10:06 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MRakuten Group (4755) | Japan Tetsuro Tsusaka, CFA

Equity Analyst

Mar Q Results: Broad-Based Tetsuro.Tsusaka@morganstanleymufg.comLuyuan Yang, CFA +81 3 6836-8412

Luyuan.Yang@morganstanleymufg.com +81 3 6836-8423

Profit Growth; Strong Fintech Keiji Nishimura

Research Associate

Keiji.Nishimura@morganstanleymufg.com +81 3 6836-8424

and Solid Mobile: Upcoming

Rakuten Group (4755.T, 4755 JT)

Internet & Media | JapanEvents Potentially Positive

Stock Rating Overweight

Industry View In-Line

Price target ¥1,000

Reaction to earnings Shr price, close (May 14, 2026) ¥761

Mkt cap, curr, basic (bn) ¥1,629.1

Strengthens our thesis Modest upside Modest revision higher Avg daily trading value (bn) ¥13.1

Impact to our thesis Financial results versus consensus Direction of next 12-month

consensus EPS

Source: Company data, Morgan Stanley Research

Vs. forecasts: All businesses contributed to profit growth, and earnings

improvement exceeded market expectations. Adjusted OP rose ¥37bn YoY, with

Fintech and Mobile serving as comparable drivers of profit expansion. EC also

delivered profit growth through margin expansion despite increasing business

maturity.

Earnings surprises: Fintech earnings were strong, while Mobile showed steady

growth. By contribution to profit growth, Fintech accounted for 40%, Mobile 36%,

and EC 23%.

Recommended action: We expect the share price to recover toward the second half

of 2026. All businesses are performing solidly. Going forward, we expect news flow

positive for Rakuten to continue, including an extension of the roaming agreement