Nomura Holdings (8604): 1Q results: Some results seem a bit too good, but strong results supported by good business environment

Research evidence excerpt

Nomura Holdings (8604): 1Q results: Some results seem a bit too good, but strong results supported by good business environment

J P M O R G A N Asia Pacific Equity Research

29 July 2026

Nomura Holdings (8604)

1Q results: Some results seem a bit too good, but Overweight

strong results supported by good business 8604.T, 8604 JP

environment Price (29 Jul 26):¥1,573

Price Target (Dec-26):¥1,680

Positive: Nomura Holdings’ 1Q FY2026 net profit of ¥145.6 billion was well Japan Equity Research

above our estimate of ¥111.6 billion and the Bloomberg consensus estimate of

Insurance, Securities, Diversified

¥111.5 billion. Annualized ROE was also high at 15.4%. We think 1Q trends are Financials

unlikely to persist without any changes, given a pullback in equity income since AC Koki Sato

July due to a market correction and seasonal factors and a prospective full-year

(81-3) 6736-8609

increase in performance-based compensation. However, we think 1Q results were koki.sato@jpmorgan.com

strong, supported by a good business environment. Yuka Azami

• Overview of pretax profit in main segments: (1) The wealth management (81-3)yuka.azami@jpmorgan.com6736-8619

segment grew 16% QoQ to ¥71.1 billion (our estimate: ¥54.1 billion). Flow JPMorgan Securities Japan Co., Ltd.

revenue surpassed our estimates by more than 10% on strong stock trading and

investment trust sales. Recurring revenue also remained strong, and combined

with effective cost control, the segment pretax profit margin improved to 49%

(versus 42% in full-year FY2025). (2) The investment management segment

grew 148% QoQ to ¥45.0 billion (our estimate: ¥23.0 billion). High QoQ

growth was due to the dropout of impairment losses on equity interest in a

forestry asset management business in 4Q FY2025 and growth in income