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NOAH
Earnings call · Jun 2026 (Q2 FY26)

NOAH HOLDINGS Q2 FY26 earnings call NOAH

Aug 26, 2026 Source

Executive summary

Noah Holdings Q2 FY26 — AI-Driven Transformation Yields Profitability and AUM Growth

Noah Holdings' Q2 FY26 results demonstrate a successful transition towards an AI-driven operating model, yielding significant profitability improvements and AUM growth despite declining revenues from legacy businesses. The AI Wealth Management Department in Singapore achieved profitability and strong asset growth, validating the company's strategy to decouple asset growth from RM headcount. This transformation aims to build a scalable, efficient global wealth management platform, with continued focus on cost discipline and shareholder returns.

Highlights

5

  • Non-GAAP net income attributable to Noah was RMB 238 million in Q2 FY26, up 25.9% YoY and 77.8% QoQ.

  • Operating income was RMB 216 million in Q2 FY26, up 34% YoY, with an operating margin of 34.8%.

  • U.S. dollar-denominated AUM increased by 11.7% year-over-year to USD 6.5 billion, despite a 36.2% decline in overseas RM headcount.

  • The Singapore AI Wealth Management Department achieved monthly profitability in July, growing AUM from less than USD 100 million to over USD 400 million.

  • Net performance-based income (carry) reached RMB 238 million in H1 FY26, up 364% YoY.

Concerns

3

  • Net revenue declined 1.5% YoY to RMB 620 million in Q2 FY26.

  • Net distribution income declined 36% YoY in H1 FY26, including a 53.8% decline in insurance-related products, due to deliberate strategic choices.

  • Recurring management fees declined 10.8% YoY to RMB 360 million in Q2 FY26 due to runoff of legacy RMB private equity assets.

Guidance & targets

CategoryTargetConfidence
Full-year operating margin
above 30%
high materiality
High

Segment performance

SegmentRevenueYoYQoQMargin
Mainland China
Returning to the fundamentals of investment and asset allocation with greater focus on standardized assets that offer sustainable long-term allocation value. The company is not pushing scale for the sake of scale, but emphasizing asset quality, client investment outcomes, and long-term trust.
Noah Upright H1 net revenues: RMB 414 millionNoah Upright H1 fundraising: RMB 8.27 billionNoah Upright H1 net revenues growth: 59.8% YoYMainland China insurance H1 net revenues: RMB 382 million
RMB 384 millionup approximately 20.7%——
International
Nearly 90% of the decline came from the deliberate contraction of the insurance business and the exit from legacy referral channels. Excluding those two factors, revenue from U.S. dollar-denominated investment products were broadly flat year-over-year, while the client base and assets continued to grow. This reflects a decoupling of asset growth from RM headcount growth.
U.S. dollar-denominated AUM growth: 11.7% YoYRegistered overseas clients: 21,059Registered overseas clients growth: 11% YoYOverseas diamond and black card clients: 1,791Overseas diamond and black card clients growth: 8.9%Active overseas clients (Q2): 3,494Active overseas clients growth (QoQ): 8.5%Overseas RM headcount decline: 36.2% YoY
RMB 469 milliondeclining 21.9%——
International - Wealth
Generated RMB 88.65 million in Q2 as part of the International segment.
RMB 193 million———
International - Olive Asset Management
Part of the International segment, focusing on private equity, structured products, and hedge funds.
U.S. dollar-denominated private equity fundraising: USD 410 millionU.S. dollar-denominated private equity fundraising growth: 13.4% YoYU.S. dollar-denominated structured products and hedge fund fundraising: USD 590 millionU.S. dollar-denominated structured products and hedge fund fundraising growth: 33.2%
RMB 198 million———
International - Glory
Part of the International segment, expanding its independent broker network.
Independent broker network professionals: 238
RMB 78.24 million———

NOAH operating KPIs by quarter

NOAH operating KPIs stated on its earnings calls, by fiscal quarter
KPI Mar 2026 Q1 FY26This call Jun 2026 Q2 FY26Change vs prior quarter
Overseas registered clients
20.373K As of March 31, overseas registered clients reached 20,373, up 11.9% year-over-year. Source transcript
21.059K As of end June, registered overseas clients reached 21,059, up 11% year-over-year. Source transcript
+3.4%
Diamond and Black Card clients Overseas
1,781 Overseas, Diamond and Black Card clients reached 1,781, up 3.8% quarter-over-quarter, reflecting continued traction in overseas markets. Source transcript
1,791 Overseas diamond and black card clients reached 1,791, up 8.9%. Source transcript
+0.6%

Operating figures the company states on every call, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Product announcements

ProductTypeDetails
AI Wealth Management Departmentlaunch

Deals & partnerships

Column Bank (Column National Association) Partnership to enhance account opening, multicurrency settlement, and payment processing capabilities for international clients.

This partnership is part of the international middle and back-office infrastructure being built since 2024, and is designed to improve client service efficiency and offering scalabilities across licensed entities in Hong Kong, Singapore, the United States and Japan. Services are provided only to non-Mainland Chinese residents who meet applicable regulatory requirements.

Risks & headwinds

Phase-out of legacy business models and associated revenues Ongoing

Net distribution income declined 36% YoY in H1 FY26, including a 53.8% decline in insurance-related products. Recurring management fees declined 10.8% YoY in Q2 FY26.

Mitigation:Transition to AI-driven operating model, focus on investment capabilities and standardized assets, cost discipline, and international expansion.

Competition and suitability standards in insurance market Current

Insurance commissions fell 58.2% YoY in Q2 FY26.

Mitigation:Deliberate decision to 'walk away from business that does not meet our margin and suitability standards,' shifting to comprehensive services like family succession planning.

Legacy Camsing matter uncertainty Nearing resolution

Contingent liabilities RMB 455 million at June 30, down from RMB 505 million on March 31.

Mitigation:Completed share issuance to settled clients, launched new settlement plan for remaining clients, over 80% of affected clients accepted.

What to watch in Q3 FY26

Replication of Singapore AI Wealth Management Department model

H2 FY26
Current Singapore model achieved monthly profitability in July, AUM >USD 400M.
Target Successful replication in Hong Kong and Japan.

Why it matters

Demonstrates scalability and unit economics improvement for international business.

We are now working to replicate this model in Hong Kong and Japan with plans to gradually expand into Canada, Australia, the U.K. and Europe.

Q&A highlights

Can management provide more color on the Camsing litigation development and expect more reversals in future quarters?

Management confirmed that over 80% of affected clients accepted the new settlement plan, substantially reducing legacy risk exposure. They are adjusting provisions quarterly based on actual settlement progress but cannot predict future reversals.

“So as of today, more than 80% of our affected clients has accepted the settlement plan. So our legacy risk exposure has declined substantially.”

asked by Calvin from Citibank · answered by Qing Pan

2 min read 6 chapters

Detailed narrative

AI-Driven Operating Model Transformation

Noah is transitioning from a traditional RM-centric model to an AI-driven platform, aiming to decouple asset growth from RM headcount. The AI Wealth Management Department, particularly in Singapore, has shown early success, achieving monthly profitability and significant AUM growth with a lean team. This model leverages AI for standardized client engagement, licensed professionals for critical judgment, and ecosystem partners for expanded reach, fundamentally changing wealth management unit economics.

Financial Performance and Efficiency

The company reported strong operating profit growth of 34% YoY and a record operating margin of 34.8% in Q2 FY26, despite a slight revenue decline. This was driven by disciplined cost management, including a 17% reduction in total headcount and a 12.7% reduction in personnel costs in H1 FY26. These improvements reflect a leaner, more digitalized operating structure, enabling a higher portion of revenue to flow to operating income.

Carry Income and Investment Capabilities

Net performance-based income (carry) reached RMB 238 million in H1 FY26, up 364% YoY, demonstrating the strength of Noah's institutionalized investment capabilities across a diversified portfolio of private equity funds. Management emphasized that carry is a recurring outcome of their long-term investment strategy, built on a three-layer model of LP investments, fund of funds, and co-investments, though it will naturally fluctuate with market cycles.

Strategic Shift in Mainland China and International Business

The Mainland China business is refocusing on standardized assets and client profitability, proactively reducing traditional high-commission insurance products and emphasizing asset quality. The international business is undergoing a similar transition, phasing out legacy referral channels and insurance, while U.S. dollar-denominated AUM and client base continue to grow, indicating a successful revenue mix transition.

Camsing Matter Resolution Progress

Significant progress was made in resolving the legacy Camsing matter, with over 80% of affected clients accepting a new settlement plan. This led to a partial reversal of contingent litigation expenses and a reduction in contingent liabilities from RMB 505 million to RMB 455 million at June 30, meaningfully reducing the uncertainty associated with this legacy issue.

Global Expansion and Infrastructure

Noah plans to replicate the successful Singapore AI Wealth Management Department model in Hong Kong, Japan, Canada, Australia, the U.K., and Europe. This expansion is supported by strengthening international operating infrastructure, including a partnership with Column Bank for enhanced account opening and multi-currency settlement, enabling scalable global coverage with a lower fixed cost base.

AI-generated summary of the company's earnings call. Not investment advice.