Hybe eyes 45% revenue surge by 2026, backed by BTS and rising rookie groups

As the global entertainment market continues to navigate economic uncertainty and trade tensions, South Korea's HYBE Corporation is showing resilience. As per the South Korean media outlet news 2 day, Hybe is gearing up for a major growth phase, with projections indicating a 45% jump in revenue by 2026.

At the core of this momentum is BTS, Hybe’s flagship act. Although the group is currently on military hiatus, expectations for their return by 2026 continue to support positive investor sentiment. As per the outlet, this confidence stems not only from BTS’s influence but also from HYBE’s infrastructure designed for scalable growth.

Surrounding the mega act, HYBE’s IP pipeline includes established groups like Enhypen, LE SSERAFIM, and TXT. All these groups have recorded year-over-year increases in fan engagement, music sales, and touring revenue.

In addition, newer acts such as BoyNextDoor, and Illit are expanding HYBE’s presence in emerging markets, contributing to broader brand recognition and revenue diversification.

The company’s IP-driven model is seen as a key differentiator as per the report. With a multi-tiered artist lineup, the company is positioned to generate steady content, concert, and merchandise revenue across all fanbases.

Another major contributor to HYBE’s revenue is the Weverse platform, which brings together fan engagement, e-commerce, and media content. The platform’s growing user base, marketing integration, and merchandise offerings have further strengthened its role in the company’s overall strategy.

Analysts, including Kim Min-young of Meritz Securities highlighted this momentum noting that HYBE is entering a phase of renewed growth. With Q1 2025 identified as a potential earnings low point, projections suggest a 45.0% year-over-year increase in sales and a 49.5% rise in operating profits by 2026.

She labeled Hybe as a top stock pick, citing its diversified revenue streams and the expanding global reach of its artists.

The outlook for the rest of the year remains positive as per news 2 day. Increased artist activity, upcoming music releases, and the return of global tours are expected to contribute to stronger performance in the second and third quarters. As market focus shifts from tech to content-driven companies, HYBE may benefit from heightened investor interest.

Overall, HYBE’s investments in artist development, international IP expansion, and digital platforms reflect its strategy for sustained growth reports the outlet. Its performance in 2025 indicates a solid recovery and positions the company as a key player in the evolving global entertainment landscape.

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Other than Hybe, SM, and YG see positive stock momentum amid global recovery

As per news 2 day, in the midst of global trade tensions and tariff policies, South Korea's major entertainment companies other than Hybe, like SM, and YG are also experiencing renewed investor confidence. This is leading to a notable increase in stock performance.

As digital content continues to drive global consumption, the entertainment sector remains resilient as per the report. It benefits from minimal exposure to traditional tariffs and growing signals of eased restrictions on Korean Wave (Hallyu) content.

The resurgence in performance and anticipated artist comebacks are shaping market expectations for the remainder of the year. New group debuts and global expansion strategies are further expected to influence the revaluation of stock prices across the sector.

Analysts identify the launch of new talent, international content exports, and expansion of platform services as key catalysts for stock growth in the second half of the year.

The Korea Exchange reported a robust performance from SM Entertainment. This closed at 113,600 KRW on April 22, marking a 58.9% rise from its January 2 closing price of 71,500 KRW.

YG Entertainment followed with a 43.2% increase year-to-date. Conversely, JYP Entertainment saw a 7.1% decline due to artist inactivity and underwhelming group performances, which limited its competitive edge in the saturated global market.

SM’s resurgence, as per the outlet, was largely attributed to improved market conditions in China and the successful debut of girl group Hearts2Hearts. Additionally, the company’s strategic shift to focus on core music operations helped reinforce investor confidence.

Performance-based indirect sales through IP collaborations and merchandise (MD) are also expected to grow significantly.

Lee Hyun-ji of Eugene Investment & Securities noted that SM’s concert agency Dream Maker, previously in deficit, is on track for recovery, especially with adjusted ticket pricing in key markets like Japan. Consequently, the target stock price for SM has been raised by 2.9% to 140,000 KRW.

YG Entertainment is projected to continue strong performance into Q2, backed by BLACKPINK’s world tour and the rising popularity of rookie groups Baby Monster and TREASURE.

Baby Monster’s ability to conduct arena-level tours early in their career underscores rapid fandom growth across Asia and North America. Analysts predict that YG will benefit from a dual momentum—BLACKPINK’s profitability and Baby Monster’s expansion—leading to a 12.2% upward revision in the target stock price to 83,000 KRW.

While JYP Entertainment faced setbacks in Q1, the outlook for the second half remains optimistic as per news 2 day.

Stray Kids’ North American tour and Twice’s global schedule are expected to fuel merchandise revenue and tour-related settlements. Analysts have revised JYP’s target price upward by 14.3% to 88,000 KRW, citing the potential for rebound as major artists resume large-scale activities later in the year.

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The overall rise in entertainment stocks is supported by increased global demand for K-pop, platform diversification, and optimism around relaxed THAAD-related content restrictions. According to news 2 day, as investor interest shifts from tech to content, entertainment companies are entering a growth phase. The second quarter is expected to mark the beginning of a sustained performance uptrend.