Dentsu Group (4324) Q1 2026 earnings summary

Executive summary

• Q1 FY2026 saw organic growth of 0.8% and a significant increase in statutory net profit to JPY 40.2bn, up 540.5% year-over-year, driven by gains on the sale of the Dentsu Ginza Building.

• Operating margin improved to 12.8%, up 100bp YoY, with underlying operating profit rising 11.5% to JPY 37.8bn.

• Japan led with 4.7% organic growth, while Americas and APAC (ex Japan) saw declines.

• Major client wins included Farmers Insurance, HEINEKEN, MUFG, and Samsung Electronics Europe.

• Comprehensive income for the period reached JPY 45.4bn, compared to a loss in the prior year.

Financial highlights

• Net revenue rose 2.7% YoY to JPY 295.1bn.

• Underlying net profit increased 18.4% YoY to JPY 19.6bn.

• Statutory operating profit surged 155.5% YoY to JPY 65.0bn.

• Statutory basic EPS jumped 540.4% YoY to JPY 154.68.

• Total assets as of March 31, 2026, were JPY 3,044.7bn, with total equity at JPY 477.9bn.

Outlook and guidance

• FY2026 guidance reiterated: organic growth rate of 0–1%, revenue of JPY 1,491.5bn, and operating margin target of 13%.

• Underlying operating profit is projected at JPY 166.3bn, and profit attributable to owners of the parent at JPY 69.7bn.

• Japan expected to grow 2–3%, Americas around -2%, EMEA and APAC both around 1%.

• Full-year forecast maintained amid macroeconomic and geopolitical uncertainty.