SM Entertainment (041510, CEOs Jang Cheol-hyeok, Tak Young-jun, hereinafter SM) once again proved its strength in the first quarter of 2026 by leveraging solid IP power and global strategies. Thanks to explosive growth in concert and merchandise businesses, both sales and operating profit posted double-digit growth rates.
According to SM's earnings announcement on the 6th, consolidated sales for the first quarter of 2026 were 279.1 billion won, and operating profit was 38.6 billion won. These figures represent increases of 20.6% and 18.5%, respectively, year over year, reflecting the solid growth of core businesses.
The top contributor to these results was, without question, the "global fandom." Concert sales on a separate basis soared by a staggering 56.0% year over year. Core IPs spanning generations — Super Junior, NCT DREAM, aespa, RIIZE, NCT WISH — have continuously operated global tours, solidifying the revenue structure.
The merchandise and licensing institutional sector also played a key role, growing 20.3%. Planned merchandise tied to EXO's full-length album pop-up events and aespa's tour, along with strong lightstick sales, combined to effectively target "fandom." In addition, the consolidation effect from DearU and improved earnings from major subsidiaries such as SM C&C and SM Japan were added.
Rookie girl group "Hearts2Hearts," which debuted last year, is quickly expanding its achievements in the global market since debut. Signature songs "The Chase" and "STYLE" each surpassed 100 million cumulative global streams on Spotify, and "RUDE!" has about 85% of its streams coming from overseas, continuing success in the global market. It also ranked No. 1 among K-pop girl group tracks released in 2026 on the Spotify Global Top 200.
The lineups for the second and third quarters also raise expectations. In the second quarter, full-length albums by Taeyong, aespa, and NCT WISH, as well as mini albums by SHINee, RIIZE, and Hearts2Hearts, will target the music scene. In the third quarter, full-length albums from the reliably listened-to Taeyeon and NCT 127, mini albums from Super Junior-83z, Red Velvet, and WayV, and solo activities from Yesung, Minho, and Yunho are lined up.
In addition to aespa's new global tour connecting Seoul with North America and Europe, EXO's tour, and solo concert tours for Yunho and Irene following their debuts as soloists, SM's growth engine appears likely to run at full capacity for the time being.<
[Photo] SM Entertainment
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