ORIX Corporation Q1 2026 Earnings: Net Income JPY 107.3 Billion, Annualized ROE 10.4%

ORIX Corporation reported Q1 2026 earnings with a net income of JPY 107.3 billion, up JPY 20.6 billion YoY, and an annualized ROE of 10.4%. The company plans to record gains from the sale of Greenko and ORIX Asset Management and Loan Services Corporation in Q2. The first quarter's progress rate was 28.2% against the annual forecast of JPY 380 billion.

ORIX Corporation (8591:JP) reported its Q1 2026 earnings with a net income of JPY 107.3 billion, up JPY 20.6 billion year-over-year (YoY), and an annualized return on equity (ROE) of 10.4%. The company achieved a progress rate of 28.2% against its annual forecast of JPY 380 billion. Orix plans to record gains from the sale of Greenko and ORIX Asset Management & Loan Services Corporation in the second quarter.

The company's pre-tax profit for Q1 2026 was JPY 155.5 billion, a YoY increase of JPY 35.3 billion. Segment profits in finance, operations, and investments categories all posted YoY growth. The company's ROE improved by 1.6 percentage points from the end of FY2025.3.

In Q1, Orix completed 40.9 billion JPY of a 100 billion JPY share buyback program. The company forecasts an interim dividend per share (DPS) equivalent to 39% of H1 net income.

Orix also announced several strategic moves in Q1. It sold a partial stake in Greenko and Orix Asset Management & Loan Services Corporation and made investments in AM Green and Hilco Global. Additionally, the company plans to acquire a majority stake in Hilco Global, an Illinois-based financial services firm, to bolster its asset management capabilities in the U.S.

BofA Securities recently raised its price target on Orix to JPY 3,880 from JPY 3,620, citing the company's strong momentum and improved ROE. The firm projects Orix to achieve ROE of 10.3% in FY3/26, 10.2% in FY3/27, and 10.7% in FY3/28.

References:
[1] https://www.marketscreener.com/news/orix-first-quarter-results-presentation-material-2025-6-ce7c5eded080fe21
[2] https://www.investing.com/news/analyst-ratings/orix-stock-price-target-raised-to-jpy3880-by-bofa-on-roe-improvement-93CH-4177510