Last Updated on August 11, 2026 by TMB
Rakuten Group recently released its Q2 FY2026 report, and with it came some positive news. Specifically, the Group has announced ¥7.7 billion in net income for that quarter. This represents the first time that the company has had a profitable quarter since Q2 2020.
Rakuten Group’s consolidated revenue rose 11.6% year over year to ¥665.5 billion, which is its highest-ever second-quarter revenue. Also notable was that all of its major operating segments (fintech, mobile, and internet services) saw growth at the same time. This report has had experts reassessing the company’s future.
The Impressive Numbers
To put into perspective just how much of a turnaround this is, the company saw a loss of ¥51 billion just last year, which was part of a long-running profit drought. Upon further inspection, it is clear that different aspects of the business are finding their footing and drawing impressive numbers.
Fintech, for example, reported a 27% increase in revenue to ¥295.4 billion. This can be chalked up to Rakuten Bank, Rakuten Securities and Rakuten Card enjoying higher transaction volumes while also expanding to new markets.
As per the report, its fintech arm has succeeded in “becoming customers’ primary bank for everyday life.”
Its mobile division was yet another win, as it increased its revenue 11.9% to ¥101.3 billion, while also cutting its operating losses by ¥4.1 billion. Its strategy to turn things around with its mobile customers was to create more loyal customers by removing emphasis on short-term subscriptions. This was especially important because, for years, the company was bleeding money on its mobile division and there was concern that it would never become profitable. Clearly, this has since changed.
Then there is e-commerce, with gross merchandise sales increasing 5.3% to ¥1.53 trillion. This is thanks to Rakuten Travel’s transaction volume rising by 17.2%, as well as advertising revenue hitting 15.6%.
Where Next?
In this report, the company hardly understated the role of AI. AI has already gotten a foothold in virtually every business sector, and Rakuten Group seems to have found its own applications. Not only is AI being used in its e-commerce search, advertising and travel bookings to increase efficiency, but about 50 AI initiatives are in development as of this reporting.
Needless to say, we can expect to see AI play an even bigger role in Rakuten’s operations moving forward.
And while these Q2 numbers are very encouraging, some investors and market watchers are still cautious. After all, permanently reversing a long-running losing streak is the ultimate goal and not a temporary win. With more expansion, increased synergy between the various divisions, and the help of more AI innovations, it will be interesting to see if Rakuten Group will stay on top.
