Rakuten (4755) mobile business turns first quarterly profit
Rakuten Inc. shares are trading higher today, 22 May 2026, after the company announced its mobile business achieved its first quarterly profit since its market entry. The Japanese e-commerce and fintech giant's stock has risen 3.1% to ¥775, building on its previous close of ¥752.
The positive movement follows Rakuten's first-quarter 2026 earnings report, released on 14 May, which detailed a 14.4% year-on-year increase in revenue. Operating profit reversed a ¥15 billion loss in the prior year's period, recording a ¥30 billion profit. This improvement is primarily attributed to reduced losses within the mobile segment and sustained profit growth from its fintech operations.
The market is evaluating the large Japanese conglomerate's improving financial position, with investors focusing on the stabilisation of its revenue structure.
Rakuten's Mobile Business Finally Turns a Profit
Rakuten Inc. is a sprawling Japanese internet giant, best known for its extensive e-commerce platform, Rakuten Ichiba. Beyond online shopping, it operates a vast ecosystem of services including mobile communications, financial offerings like banking and credit cards, travel booking, and digital content. This interconnected network allows Rakuten to embed itself deeply into consumers' daily lives, generating revenue by creating synergies across its many ventures.
The primary driver behind today's share price increase is the announcement that Rakuten's mobile business, a division that has absorbed significant investment for years, achieved its first-ever quarterly operating profit in the first quarter of 2026. This marks a substantial turnaround, moving from an operating loss of ¥15 billion in the same period last year to a profit of ¥30 billion this quarter, with sales also climbing by 14.4% year-on-year. This shift signals that a business once seen as a drain on resources is now contributing positively to the company's bottom line.
This concrete improvement in profitability has reassured investors about Rakuten's financial trajectory, leading to a more stable outlook on its earnings structure. Consequently, Rakuten's shares are currently trading at ¥775, representing a 3.1% rise from yesterday's close of ¥752.
Think of it like a long-distance runner who has been pushing hard for miles, with spectators unsure if they'll ever reach the finish line. When they suddenly find a burst of energy, pick up their pace, and the finish line comes into view, the crowd's excitement and belief in their success surge. This mobile profit is Rakuten's moment of acceleration, validating years of investment and boosting confidence in its future performance.
Rakuten Inc.
Rakuten Group, Inc. (4755), a Japanese conglomerate operating in the Consumer Cyclical sector, offers a diverse array of internet services, fintech solutions, and mobile communication. Its Internet Services segment encompasses online retail platforms like Rakuten Ichiba, Rakuten Books, and Rakuten Fashion, alongside travel booking via Rakuten Travel, golf reservations through Rakuten Gora, and the flea market app Rakuma. This segment also provides cashback services, daily necessities sales, mobile messaging, and e-book offerings. The FinTech division issues credit cards, facilitates internet banking, provides general and life insurance, processes payments, and operates an online securities trading platform. Additionally, the Mobile segment delivers mobile communication, optical broadband, and power supply services. Established in 1997, Rakuten Group, Inc. is headquartered in Tokyo, Japan.