Dentsu: Mar Q Results: Japan Growth Remains Positive, Overseas Weakness Continues; On Track vs. Guidance, but No Clear Recovery Abroad

Research evidence excerpt

Dentsu: Mar Q Results: Japan Growth Remains Positive, Overseas Weakness Continues; On Track vs. Guidance, but No Clear Recovery Abroad

Update

May 15, 2026 10:09 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MDentsu (4324) | Japan Tetsuro Tsusaka, CFA

Equity Analyst

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

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

Remains Positive, Overseas Keiji Nishimura

Research Associate

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

Weakness Continues; On Track

Dentsu (4324.T, 4324 JT)

Internet & Media | Japanvs. Guidance, but No Clear

Stock Rating Underweight

Industry View In-Line

Price target ¥2,500Recovery Abroad Shr price, close (May 15, 2026) ¥3,035

Mkt cap, curr, basic (bn) ¥787.8

Avg daily trading value (bn) ¥5.2

Reaction to earnings

Unchanged In-line Largely unchanged

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

consensus EPS

Source: Company data, Morgan Stanley Research

Results vs. forecasts: Consolidated adjusted OP +11% YoY; margin 12.8% (+1pt).

Organic growth of +0.8% was slightly below expectations, but with market

expectations already muted, results were broadly neutral.

Earnings surprises: Despite guidance for profit decline, Dentsu delivered positive

growth, making solid progress toward full-year targets.

Recommended action: Results were steady, but with continued negative growth

overseas, they are unlikely to act as a catalyst for share price recovery.

Organic growth: Japan remained strong, while overseas regions showed little

improvement. Japan +4.7% YoY; Americas -3%; EMEA +0.8%; APAC -7.5%.

Japan: Adjusted OP +6% YoY; margin 30.8% (+1.8pt). Continued strong performance

supported overall company earnings.