Noah Holdings (NOAH) Q2 2026 Earnings Report

The call presents a predominantly constructive picture: profitability and margins expanded meaningfully driven by disciplined cost reductions and operating efficiency while new AI-enabled operating models (notably the Singapore AI wealth management department) produced tangible proof points — AUM growth, monthly profitability and the ability to grow assets while materially reducing RM headcount. Performance-based income (carry) rebounded strongly in H1 and U.S. dollar-denominated assets and fundraising showed healthy growth. Offsetting these positives are declines in legacy distribution and insurance revenues, flat top-line year-to-date, the lumpy nature of carry, regulatory headwinds and remaining contingent liabilities tied to the legacy Camsing matter. Overall, the highlights around margin expansion, AI proof points and asset growth outweigh the lowlights tied to legacy revenue declines and execution/forecast uncertainty, but the company remains in an execution-sensitive transition.

Guidance reiterated management’s Q1 outlook: they expect full‑year operating margin to remain healthy above 30% (quarterly results may fluctuate) and will prioritize moving from the Singapore proof point to a replicable system—replicating the AI wealth‑management department in Hong Kong and Japan and then expanding into Canada, Australia, the U.K. and Europe—while using AI to deepen investment capabilities and carry realization, strengthen international middle/back‑office infrastructure (e.g., Column Bank partnership) and build an AI‑powered global ecosystem of partners; they will continue high shareholder returns and quarterly disclosure but will not normalize or forecast carry. The guidance is supported by recent metrics: Q2 net revenue RMB 620m, Q2 operating income RMB 216m (34.8% margin), H1 net revenue RMB 1.25b and H1 operating income RMB 452m (36.3% margin); performance‑based income (carry) was RMB 138m in Q2 and RMB 238m in H1 (+364% y/y), H1 fundraising RMB 40.5b (+22.4% y/y) with USD fundraising USD 2.45b (+8.4%, 41% of total), group AUM RMB 140.9b, USD AUM USD 6.5b (+11.7% y/y) and USD AUA USD 9.78b (+7.5% y/y); Singapore AUM rose from <USD100m at launch to >USD400m and raised USD 158m in H1 (+126% y/y) with 92% of clients on AI service and 42% of new AUM from ecosystem partners—all while total headcount fell 17%, overseas RM headcount fell 36.2% y/y even as USD AUM grew 11.7%, operating costs and expenses were down ~11.6% (personnel costs down ~12.7%), cash/short‑term investments ~RMB5.0b with zero interest‑bearing debt, contingent liabilities ~RMB455m and >80% of affected Camsing clients accepting the settlement.