SM Entertainment Reports 21% Revenue Growth in First Quarter

06 May 2026, 18:48 by K-Soul · allkpop

SM Entertainment posted strong results for the first quarter of 2026, once again demonstrating its resilience on the back of solid IP power and an aggressive global strategy. Driven by explosive growth in its concert and merchandise (MD) businesses, the company achieved double-digit increases in both revenue and operating profit.

According to its earnings report released on May 6, SM recorded consolidated revenue of 279.1 billion KRW (193 million USD) and operating profit of 38.6 billion KRW (27 million USD) for the first quarter of 2026. These figures mark year-over-year increases of 20.6% and 18.5%, respectively, highlighting the continued strength of its core business segments.

The standout driver behind this performance was undoubtedly its global fandom. On a separate basis, concert revenue surged by an impressive 56.0% compared to the same period last year. Major IPs spanning multiple generations—including Super Junior, NCT DREAM, aespa, RIIZE, and NCT WISH—have been actively touring globally, strengthening the company’s revenue structure.

The MD and licensing segment also grew by 20.3%. Strong sales from pop-up events tied to EXO’s full-length album, tour-related merchandise for aespa, and the continued popularity of official light sticks effectively tapped into fan demand. Additional contributions came from the consolidation of DearU, along with improved performances from key subsidiaries such as SM C&C and SM Japan.

Rookie girl group Hearts2Hearts, which debuted last year, has also been rapidly expanding its global presence. Their title tracks “The Chase” and “STYLE” have each surpassed 100 million cumulative streams on Spotify, while “RUDE!” recorded approximately 85% of its streams from international markets. Notably, the group also ranked No. 1 among K-pop girl group releases in 2026 on the Spotify Global Top 200 chart.

Looking ahead, SM’s lineup for the second and third quarters is expected to sustain the momentum. In the second quarter, full-length albums from Taeyong, aespa, and NCT WISH are set for release, alongside mini albums from SHINee, RIIZE, and Hearts2Hearts.

The third quarter will feature highly anticipated releases from Taeyeon and NCT 127, as well as mini-albums from Super Junior-83z, Red Velvet, and WayV. Solo activities from Yesung, Minho, and U-Know Yunho are also on the horizon.

In addition, aespa’s new global tour spanning North America and Europe, alongside EXO’s tour and the first solo concert tours by U-Know Yunho and Irene, are expected to keep SM’s growth engine running at full capacity for the foreseeable future.

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