SMBC Nikko Securities' "Corporate Earnings Outlook for 2025-2026"

SMBC Nikko Securities has published its "Corporate Earnings Outlook for 2025-2026," presenting a comprehensive analysis of the Japanese equity market, centered on the firm's proprietary NIKKO250 index, which covers approximately 75% of the total market capitalization of all listed Japanese companies. The outlook revises its forecast for the fiscal year 2025, downgrading near-term profit expectations, while introducing a new, more optimistic forecast for fiscal year 2026. The analysis is framed by a cautious outlook on the global macroeconomic environment, potential risks from US trade policy, and domestic political uncertainty stemming from the upcoming Upper House election in Japan.