SM Posts Record Q1 Earnings Driven by aespa, EXO, RIIZE

Author Minji Park

Update May 9, 2026

Date May 9, 2026

KSPO Dome filled with fans waving colorful light sticks as NCT WISH performs on stage.

Over 33,000 fans join NCT WISH at KSPO Dome, celebrating ahead of their first full album Ode to Love. (Photo / SM Entertainment)

SM Entertainment posted record-breaking first-quarter earnings for 2026, powered by the global success of its artists and strong growth in concerts and merchandise sales.

According to regulatory filings released on May 6, SM Entertainment recorded consolidated revenue of 279.1 billion won during the first quarter of 2026, marking a 20.6% increase compared to the same period last year.

Operating profit also climbed to 38.6 billion won, up 18.5% year-over-year, highlighting the company’s continued momentum as one of K-pop’s leading entertainment giants.

Global Tours and Merchandise Fuel Massive Growth

A major driver behind the strong SM Entertainment Q1 2026 earnings was the company’s booming concert business.

Artists including NCT DREAM, aespa, and RIIZE expanded their global tours across Asia and other international markets, leading concert-related revenue to surge by 56% compared to last year.

Merchandise sales also delivered exceptional results.

Large-scale pop-up events for EXO and official tour merchandise connected to aespa generated strong fan demand, with MD sales alone reaching 47.4 billion won.

Five EXO members perform on stage in Seoul, wearing black and red leather outfits, with a digital backdrop of a tree illuminated by blue and purple lights. — EXO returned to the stage at KSPO Dome for EXO PLANET #6 – EXO’rDIUM in Seoul, their first group concert in over six years and debut as a five-member lineup, drawing 32,000 fans across three days. (Photo / SM Entertainment)

Hearts2Hearts Emerges as a Powerful Rookie Group

The company also benefited from the successful balance between veteran artists and newer intellectual properties.

Rookie girl group Hearts2Hearts, which debuted last year, gained attention after its debut tracks entered upper ranks on Spotify global charts, signaling strong international growth potential.

Meanwhile, veteran groups like EXO and Super Junior continued providing stability to the company’s artist lineup while younger acts expanded SM’s global reach.

Net Profit Decline Viewed as Temporary Effect

Although the company’s net profit declined significantly on paper, SM explained that the decrease was largely due to one-time gains recorded during the previous year, creating a temporary comparison effect.

Compared to the previous quarter, net profit actually improved by more than 18%, suggesting stronger long-term profitability and healthier operational fundamentals.

aespa members performing in edgy black leather outfits under red stage lights. — aespa delivers a powerful stage look in concept photo for pre-release single “WDA.” (Photo / SM Entertainment)

Aggressive Second-Quarter Plans Already Underway

SM Entertainment is expected to continue its aggressive expansion strategy throughout the second quarter of 2026.

Upcoming releases include full-length albums from Taeyong, aespa, and NCT WISH, alongside new mini albums from SHINee and RIIZE.

The company is also preparing for aespa’s North American and European tours as well as EXO’s upcoming world tour, both of which are expected to further maximize concert and merchandise revenue.

SM Plans Continued Global Expansion

SM co-CEO Jang Cheol-hyuk stated that the company is continuing to establish a sustainable IP growth structure while actively pursuing investments and mergers and acquisitions to expand global market share.

The company reportedly shared additional details regarding its financial performance during a conference call with domestic and international institutional investors held on May 6.

With global touring, strong fandom purchasing power, and a balanced artist roster spanning multiple generations, SM Entertainment appears poised to maintain its upward trajectory throughout 2026.