SM Entertainment (041510, represented by Jang Cheol-hyuk and Tak Young-jun, hereinafter referred to as SM) once again demonstrated its resilience in the first quarter of 2026, leveraging robust IP power and global strategies. Both sales and operating profit achieved double-digit growth rates, driven by explosive growth in concerts and MD businesses.

According to SM’s earnings announcement on the 6th, the consolidated revenue for the first quarter of 2026 was 279.1 billion Korean won, with an operating profit of 38.6 billion Korean won. These figures represent year-on-year increases of 20.6% and 18.5%, respectively, highlighting the solid growth of core businesses.

The primary contributor to this performance was undoubtedly the “global fandom.” Concert sales on a standalone basis surged by an impressive 56.0% compared to the same period last year. Key IPs spanning generations—Super Junior, NCT DREAM, aespa, RIIZE, and NCT WISH—consistently drove global tours, solidifying the revenue structure.

The MD and licensing sector also grew by 20.3%, proving to be a reliable revenue driver. Pop-up events for EXO’s regular albums, themed MD for aespa’s tour, and strong sales of light sticks effectively capitalized on “fan sentiment.” Additionally, the inclusion of DearU’s financials and improved performance from major subsidiaries like SM C&C and SM Japan contributed to the results.

The rookie girl group ‘Hearts2Hearts,’ which debuted last year, has rapidly expanded its presence in the global market. Their representative tracks ‘The Chase’ and ‘STYLE’ each surpassed 100 million cumulative streams on Spotify globally, while ‘RUDE!’ achieved approximately 85% of its streams from overseas. Furthermore, among K-pop girl group tracks released in 2026, ‘Hearts2Hearts’ ranked first on Spotify’s Global Top 200.

The lineup for the second and third quarters is equally promising. In the second quarter, Taeyong, aespa, and NCT WISH will release regular albums, while SHINee, RIIZE, and Hearts2Hearts are set to drop mini-albums. The third quarter will feature regular albums from Taeyeon and NCT 127, alongside mini-albums from Super Junior-83z, Red Velvet, and WayV, as well as solo activities by Eunhyuk, Minho, and U-Know Yunho.

Additionally, aespa’s new global tour connecting Seoul, North America, and Europe, EXO’s tour, and solo concert tours by U-Know Yunho and Irene—marking their first since debut—are expected to keep SM’s growth engine running at full capacity.