SM Entertainment has reported strong growth in its latest quarterly results. The company said that its new business structure, often called SM 3.0, is now fully working. The results show higher sales, stronger profit, and wider global reach. Many of these gains came from music releases, concerts, merchandise, and digital platforms. The company also benefited from its subsidiaries and expanded business areas. Investors and fans are watching closely as SM prepares more releases in the coming months.
The company posted revenue of 279.1 billion won in the first quarter of 2026. Operating profit reached 38.6 billion won. Net profit stood at 38.9 billion won. This reflects year-on-year increases of 20.6 percent in sales, 18.5 percent in operating profit, and 20.9 percent in net profit. Growth came from stronger album sales, bigger concerts, merchandise sales, licensing deals, and improved performance from key subsidiaries. Digital platform DearU also contributed after consolidation. Concert scale and international touring also helped raise earnings across all major regions.
Core artists played a major role in this growth. Established groups such as Super Junior, EXO, and NCT Dream supported tours and album sales. However, the strongest growth came from newer groups like aespa, RIIZE, and NCT WISH. These groups helped expand SM’s global audience and improve chart performance. Their concerts and album sales drove much of the company’s revenue increase. SM is also focusing on fan engagement platforms and global content strategies to support long-term growth.
RIIZE saw strong global success with their first world tour called Rising Loud. The tour covered 21 regions and attracted about 420,000 fans. The group also made history by performing at Tokyo Dome just over two years after debut, one of the fastest records for a K-pop boy group. Members also took part in music production, showing growing creative control. Their popularity continues to rise in both Asia and global markets. Brand partnerships and streaming growth further strengthened their position in global music markets.
aespa also delivered strong results through their SYNK tour. The group held 22 shows in 11 cities, including Seoul, Japan, and Hong Kong. Around 450,000 fans attended the concerts. The tour highlighted their unique music style and strong stage performance. They ended the tour at Tokyo Dome, marking a major milestone and preparing for future projects. The group also gained strong fan engagement through online content and international promotions.
NCT WISH achieved major success with their first full album Odd to Love. The album sold over 1.8 million copies in its first week. It became a triple million seller within a single day of release. The group also topped multiple music charts and achieved their highest rankings on streaming platforms. Their title track also reached top positions on major domestic charts. The group has also gained strong brand deals, showing their rise as Gen Z icons. Streaming growth and global fan activity continue to support their rapid rise in the industry.
Hearts2Hearts also showed fast growth. Their songs passed 100 million streams on Spotify. One of their tracks ranked high on global charts for new releases in 2026. The group is becoming popular among younger listeners and expanding its global reach.
SM Entertainment plans more releases in the second and third quarters of 2026. Many major artists will release new albums and singles. This includes Taeyeon, SHINee, RIIZE, Super Junior, Red Velvet, WayV, and others. The company expects continued growth from strong fan demand and global expansion. These releases are expected to strengthen SM’s position in global pop music markets.
Analysts say the K-pop industry continues to grow despite global competition. Strong fan bases, digital streaming, and live tours are key drivers. SM Entertainment remains one of the leading companies in this space. Its mix of veteran and new artists helps balance steady income and fast growth. The company’s strategy focuses on global expansion and stronger artist branding.
