NOMURA HOLDINGS INC Annual Report - How They Did This Year

I’ve put together this guide to help you understand how Nomura Holdings performed this year. My goal is to turn complex financial filings into plain English so you can decide if this company fits your investment goals.

1. What does this company do and how did they perform this year?

Nomura is a global financial services group based in Japan. They operate through three main areas: Retail (services for individual clients), Investment Management (asset management), and Wholesale (global markets and investment banking).

A major highlight was the Macquarie Acquisition in December 2025. This move aims to grow their client base and expand their reach. They are currently integrating these new relationships, which added roughly ¥112.6 billion in intangible assets to their books, representing the value of the acquired customer contracts.

2. Financial performance

Nomura earns money mainly through brokerage commissions, trading gains, and management fees.

• Derivatives and Collateral: Nomura handles massive volumes of financial contracts. As of March 31, 2026, they held ¥2,035 billion in cash collateral receivables against their liabilities. This shows they are actively managing trading risks by holding cash as a buffer against potential defaults.
• Tax Adjustments: The company increased its "cushion" fund for potential tax losses by about ¥80.6 billion for certain foreign subsidiaries. This reflects a conservative view regarding the future profitability of these specific units.

3. Major wins and challenges

• Win: The Macquarie Acquisition is the primary growth driver. It shows Nomura is in "growth mode," using its balance sheet to buy established client networks to scale its operations.
• Challenge: Managing complex global operations. The company is working to finalize legal "netting agreements"—contracts that allow them to offset risks with trading partners. Finalizing these agreements is a priority for capital efficiency.

4. Financial health

Nomura keeps a large portfolio of fixed-income assets. They held roughly ¥2,877 billion in U.S. government-sponsored mortgage securities as of March 2026. While this is down from ¥3,586 billion in 2025, it shows they remain heavily invested in stable, government-backed assets to maintain cash flow.

As of March 31, 2026, the company had 2,901,337,224 shares outstanding. They are a "large accelerated filer," meaning they are a major, highly liquid company subject to the strictest financial reporting rules.

5. Key risks

Beyond standard market swings, the company highlights several areas that could impact your investment:

• Growth Strategy Risks: Acquisitions are expensive and complex. If the integration fails or expected cost savings do not materialize, the company may not recoup the ¥112.6 billion investment.
• "Event Risk": Nomura is vulnerable to global shocks—like geopolitical tensions or sudden regulatory changes—that can cause unexpected swings in the value of their trading assets.
• Sustainability & Reputation: They face pressure to meet strict environmental and social standards. Failing here could lead to legal trouble, fines, or brand damage.
• Market Volatility: Their trading business is a double-edged sword. While high volatility can increase trading fees, it also increases the risk of losses on their own investments.
• Human Capital: Success depends on keeping top-tier talent. Aggressive cost-cutting could impact their ability to retain the experts who manage their complex trading desks.

6. Competitive positioning

Nomura is a dominant player in Japan. By integrating the Macquarie business, they aim to provide better services to a wider range of global clients. They continue to invest heavily in technology and talent to maintain their competitive edge against major financial firms in the U.S., Europe, and Asia.

7. Future outlook

The focus for the coming year is integration. They have a 12-year plan to account for the value of the client relationships gained from the Macquarie deal. Investors should watch to see if this acquisition leads to higher fee income in the next few quarters as these new clients are fully onboarded.

Investor Tip: When looking at Nomura, keep an eye on their quarterly fee income. If the Macquarie integration is going well, you should see those fees start to climb as the new client base becomes more active. If you are looking for a stable, large-cap Japanese financial institution with a global growth strategy, this is a company to watch closely.