Nexon closed lower after releasing first-quarter results that showed robust top-line and operating profit growth but also included a significant one-off item that clouded the earnings beat.
The company reported revenue of ¥152.2 billion for the quarter ended March 31, 2026, a 33.6% increase from the prior year. Operating profit rose 39.8% to ¥58.2 billion. Profit attributable to owners of the parent more than doubled to ¥57.2 billion, lifting basic earnings per share to ¥72.33. Despite these headline improvements, shares slid 4.00% to trade at ¥2,519.5 during the trading session.
Management disclosed that profit before tax and related income surpassed the prior outlook in part because of a foreign exchange gain of ¥14,537 million. That gain was recorded under finance income and mainly reflected FX movements on foreign currency deposits. Company commentary characterized the FX item as non-recurring, and market participants interpreted it as reducing the quality of the reported beat.
In addition to the quarterly results, Nexon announced a share repurchase program authorizing the buyback of up to 1.8% of outstanding shares, equivalent to roughly ¥30 billion. The company also confirmed it would maintain its dividend plan and provided guidance for first-half revenue in a range of ¥259.2 billion to ¥271.9 billion. Management noted continued uncertainty around visibility for the full fiscal year.
Analyst sentiment appeared mixed-to-cautious. Several large banks, including Citi and Goldman Sachs, have issued Hold ratings on the stock in recent sessions. Jefferies likewise kept its Hold stance, citing concerns tied to the company’s outlook for the second quarter. That firm also observed that the prevailing share price implies the market is pricing in a structural decline in Nexon’s China business, although a full-scale decline has not yet materialized.
The market reaction reflected several cross-currents: a record set of headline numbers, a substantial but one-time FX gain buried in finance income, cautious forward guidance and an already depressed share price. Together, these elements weighed on investor sentiment and limited upside despite otherwise strong reported performance.
Contextual notes - The stock move highlights how one-off items and forward-looking commentary can temper enthusiasm even when reported earnings and revenue rise materially. Investor focus centered on the composition of profits and clarity around future quarters rather than the magnitude of the quarterly beat alone.