Noah Holdings Ltd. reported its financial results for the first quarter of 2026, showcasing a robust increase in operating profit and margin, despite a slight sequential decline in net revenues. The stock remained stable in aftermarket trading, closing at $10.02 with a slight increase of 0.8% in regular trading. The company demonstrated strong year-over-year growth in several key areas, highlighting strategic shifts and operational efficiency improvements.
Noah Holdings Ltd. achieved a notable increase in operating profit and margin in Q1 2026, driven by strategic shifts towards higher-quality revenue streams and disciplined cost management. Despite a 14.7% sequential decline in net revenues from Q4 2025, the company reported a 1.8% year-over-year growth in net revenues to RMB 626 million. The decline was primarily due to a reduction in insurance-related revenue and seasonal decreases in performance fee income. According to InvestingPro analysis, the stock appears undervalued at current levels, trading at a P/E ratio of just 8.9 with a PEG ratio of 0.45, suggesting attractive value relative to its growth prospects.
Noah Holdings Ltd. continues to focus on strategic repositioning towards quality investment-led products, emphasizing multi-strategy asset allocation and AI-driven portfolio optimization. The company has projected an EPS forecast of $1.49 for FY 2026 and $1.57 for FY 2027, with revenue forecasts of $395.98 million and $413.34 million, respectively. InvestingPro Tips highlight that Noah is trading at a low P/E ratio relative to near-term earnings growth and pays a significant dividend to shareholders—two of over 10 additional ProTips available to subscribers. For deeper insights, investors can access Noah’s comprehensive Pro Research Report, one of 1,400+ available reports that transform complex data into actionable intelligence.
Management highlighted the company’s commitment to enhancing revenue quality and operational efficiency. "Our strategic shift towards genuine investment and asset allocation products has yielded significant improvements in both revenue quality and profitability," stated a company executive. The management also emphasized the role of AI-driven solutions in achieving productivity gains and maintaining competitive advantages.
During the earnings call, analysts inquired about the company’s strategic focus on AI-driven products and the expected impact on future growth. Management reiterated their belief in AI as a transformative trend and highlighted ongoing investments in AI infrastructure and product innovation.
Noah Holdings Ltd.’s Q1 2026 results reflect the company’s successful strategic repositioning and operational efficiency improvements, positioning it well for future growth despite some challenges in revenue streams.
Operator: Please note, this event is being recorded. I would now like to turn the conference over to Doreen Chiu, investor relations. Please go ahead.
Doreen Chiu, Investor Relations, Noah Holdings Limited: Thank you and welcome and good morning everyone to Noah’s first quarter of 2026 earnings conference call. Joining me on the call today are Miss Wang Jingbo, the Co-founder and Chairlady. Mr. Zhe Yin, the Co-founder, Director and CEO, and also Mr. Qing Pan, the CFO. Mr. Yin will begin with an overview of our recent business highlights, followed by Mr. Pan, who will discuss our financial and operational results. They will all be available to take your questions in the Q&A section that follows. Please note that the discussion today will contain forward-looking statements that are subject to risks and uncertainties that may cause actual results that vary materially from those in our forward-looking statements. Potential risks and uncertainties include, but are not limited to, those outlined in our public filings with the SEC and the Hong Kong Stock Exchange.
Noah does not undertake any obligation to update any forward-looking statements except as required under applicable law. I would like to pass the call over to Mr. Yin. Please go ahead.
Zhe Yin, Co-founder, Director and CEO, Noah Holdings Limited: 好，各位投资者、分析师、朋友们，大家早上好。感谢大家参加诺亚控股2026年第一季度的业绩发布会。进入2026年，诺亚的转型节奏比过去更加清晰。第一季度我们观察到三个正在形成的清晰的趋势。第一个，盈利结构持续地改善，我们经营利润率达到近年以来三季度的高点。第二，境内业务正在回归投资与配置本源，活跃客户与配置规模实现双位数的增长。第三，海外业务按照我们主动调整收入结构的战略继续推进，全球化与AI驱动的新经营模式正在逐渐地形成。在进入更详细的回顾之前，我想分享两个我们在本季度后段达成的全球化里程碑。日本办公室已于5月4号正式启动运营。同时我们美国broker-dealer牌照已完成最终的核准流程，核心的关系团队也将于6月份正式加入。这两件事意味着诺亚围绕全球华人客户的服务网络正在进入从牌照铺设到落地经营的新的一阶段。接下来我从财务、境内、海外以及AI战略四个方面与大家分享。
Doreen Chiu, Investor Relations, Noah Holdings Limited: Investors and analysts, thank you for joining Noah Holdings first quarter 2026 earnings conference call. As we start 2026, the pace of Noah’s transformation has become clearer than ever before. In the first quarter, we observed three increasingly visible trends. First, our profitability structure continues to improve, with operating margin reaching one of the highest quarterly levels in recent years. Second, our domestic business is regaining momentum in core investment and asset allocation, with both active clients and transaction value achieving double-digit growth. Third, our overseas business continues to advance in line with our strategy of proactively adjusting our revenue mix, while a new operating model driven by globalization and AI gradually takes shape. Before going into a more detailed review, I would like to share two milestones in our global footprint that we recently achieved.
Our Japan office officially commenced operations on May 4th, and our U.S. broker-dealer license has completed the final approval process with key team members set to officially join in June. These two developments mean that our network is entering a new phase, moving from license deployment to operational execution. Next, I would like to share our progress from four perspectives: financial performance, domestic business, overseas business, and AI strategy.
Zhe Yin, Co-founder, Director and CEO, Noah Holdings Limited: 第一季度我们实现净收入人民币6.26亿元，同比增长1.8%，环比下降14.7%。环比下降主要来自于保险业务贡献进一步减少，以及海外私募股权产品业绩报酬收入从年末集中确认后的阶段性的正常的回落。而在利润端，得益于我们在成本纪律、组织精简与费用控制上的坚定执行，经营利润达到人民币2.36亿元，同比增长27.1%。经营利润率37.8%，是近年来三季度经营利润率最高的水平之一。Non-GAAP经营利润为人民币1.34亿元。需要说明的是，本季度的高利润率受益于业务结构优化与组织效率的进一步的释放。我们预计全年经营利润率将维持在30%以上的健康区间。季度之间因产品结构与费用节奏自然会有波动。本季度也标志着诺亚自上市以来连续第62个季度实现Non-GAAP盈利，这是诺亚在多个市场周期中始终保持的纪律。
Doreen Chiu, Investor Relations, Noah Holdings Limited: Quarter, we recorded net revenues of RMB 626 million, up 1.8% year-over-year, down 14.7% quarter-over-quarter. The sequential decline was mainly due to a further decrease in contribution from the insurance business, as well as a seasonal decrease in performance fee income from overseas private equity products following concentrated year-end recognitions. On the profit side, benefiting from our disciplined execution in cost control, organizational streamlining, and expense management, operating profit reached RMB 236 million, up 27.1% year-over-year. Operating margin was 37.8%, marking one of the highest quarterly levels in recent years.
Non-GAAP net income was RMB 134 million. It is important to note that this quarter’s strong margin performance benefited from continued optimization in our business mix and further release of additional organizational efficiency. We expect full year operating margin to remain in a healthy range above 30%, although quarter-to-quarter fluctuations are natural due to product mix and expense timing. This quarter also marked our 62nd consecutive quarter of Non-GAAP profitability since listing. This is the discipline we have maintained across multiple market cycles.
Zhe Yin, Co-founder, Director and CEO, Noah Holdings Limited: 集团第一季度活跃客户达到10742人，同比增长21.8%。募集量达到人民币233亿元，高于上年同期的161亿元。境内方面，人民币公募产品交易规模99亿，同比增长131%，人民币私募二级产品募集规模53亿元，同比增长61%。诺亚正行净收入达人民币2.1亿元，同比增长63%，主要由A股市场结构性机会带来的公募基金规模翻倍，以及人民币私募二级募集的快速回暖共同驱动。这一系列变化表明，当我们把资源重新集中到真正具备长期配置价值的产品与投资能力上时，境内业务的经营质量正在发生结构性的改善。同时，我们也更加明确了境内业务未来的战略方向。在境内，我们将继续聚焦二级市场与资产配置能力的建设，重点围绕公募基金、私募二级市场、AI驱动的客户经营、诺亚正行基金销售平台能力，持续推进我们经营的升级。我们相信境内财富管理行业正在逐步从过去以地产与非标驱动阶段回归真正以投资研究与资产配置为核心的长期时代。
Doreen Chiu, Investor Relations, Noah Holdings Limited: quarter, our active clients reached 10,742, up 21.8% year-over-year. Transaction value reached CNY 23.3 billion, compared with CNY 16.1 billion in the same period last year. In our domestic business, transaction value of RMB-denominated mutual fund products reached CNY 9.9 billion, up 131% year-over-year, while transaction value from RMB-denominated private secondary products reached CNY 5.3 billion, up 61% year-over-year. Noah Upright recorded net revenues of CNY 208 million, up 63% year-over-year, mainly driven by a doubling in public fund transaction volume as a result of structural opportunities in the A-share market, together with a rapid recovery in RMB-denominated private secondary fundraising. This series of changes shows that when we refocus our resources on products and investment capabilities with genuine long-term value, the operating performance of our domestic business improves structurally. At the same time, we have become even clearer about the strategic direction of our domestic business going forward.
For our domestic business, we will continue to focus on the secondary market and building our asset allocation capabilities, with key priorities including public mutual funds, private secondary market products, AI-driven client operations, and Noah Upright’s fund distribution platform capabilities. We will continue to drive the enhancement of our operations in these areas. We believe the domestic wealth management industry is gradually moving away from the past stage, which was driven by real estate and non-standardized products, and returning to a true long-term era centered on investment, research, and asset allocation.
Zhe Yin, Co-founder, Director and CEO, Noah Holdings Limited: 截止3月31日，海外注册客户达20,373人，同比增长11.9%。海外AUA为96亿美元，同比增长约5.9%。本季度美元产品募集规模11.5亿美元，与去年同期基本持平。海外客户与资产的基础仍在稳步地积累。收入结构调整的节奏与我们在去年第三季度业