Rakuten Group’s advertising business generated ¥65.6 billion in revenue during the second quarter of fiscal 2026, up 15.6% year-over-year as AI-powered search and targeted advertising drive monetization across the company’s digital ecosystem.
Rakuten attributed the advertising growth primarily to AI-powered search and targeted banner advertising across Rakuten Ichiba and Rakuten Travel. The company’s reported advertising figure represents total domestic advertising revenue across its Internet Services, FinTech and Mobile segments and includes intra-company transactions.
The AI advertising momentum accompanies broader growth in Internet Services. Segment revenue increased 4.2% to ¥338.1 billion, while non-GAAP operating income surged 68.6% to ¥23.1 billion.
Domestic e-commerce gross merchandise sales reached ¥1.53 trillion, up 5.3%. Non-GAAP operating income from domestic e-commerce increased 30.8% to ¥29.7 billion, supported by Rakuten Ichiba, Rakuten Travel and improved profitability across growth investment businesses.
Rakuten’s international Internet Services businesses generated $499.7 million of revenue, up 3.9%. Rakuten Viki produced revenue and profit growth through subscriber expansion and pricing changes, while Rakuten Rewards improved profitability by discontinuing a lower-margin service and reducing costs.
Across Rakuten Group, Q2 consolidated revenue reached a record ¥665.5 billion, increasing 11.6%. Non-GAAP operating income more than doubled to ¥42 billion, while IFRS operating income increased 126.9% to ¥20 billion.
The company also generated its first quarterly net income in six years and first quarterly pre-tax income in eight years. Net income attributable to owners of the parent reached ¥7.7 billion, representing a ¥58.7 billion year-over-year improvement.
Rakuten’s Mobile business continues to reduce losses as well. Rakuten Mobile subscriptions reached 10.75 million, up 1.78 million year-over-year, while revenue increased 11.9% to ¥101.3 billion and its non-GAAP operating loss narrowed by ¥6.7 billion to ¥32.3 billion.
