YG Entertainment is projected to enter a strong earnings recovery phase in 2026, supported by simultaneous activities from its major artists including BLACKPINK, BABYMONSTER, and BIGBANG, according to a new investment report.
On January 20, Kiwoom Securities maintained a “Buy” rating on YG Entertainment and kept its target price at 105,000 won, citing expectations of improved performance as multiple key artists return to active schedules this year.
Fourth Quarter Results Show Sharp Growth
Analyst Lim Soo Jin forecast that YG Entertainment’s fourth quarter results will reach approximately 154.3 billion won in revenue and 23.6 billion won in operating profit, representing year on year increases of 48.3 percent and 2,274 percent, respectively.
However, the report noted that album sales for BABYMONSTER came in slightly below expectations, while early investments in content production and marketing were reflected in costs, meaning results may fall just short of market consensus.
BABYMONSTER Gains Global Attention
Despite limited domestic activities, BABYMONSTER continues to expand its international recognition. Their performances at major year end music festivals and award shows ranked among the most viewed stages of the events, highlighting growing global awareness.
Analysts emphasized that while early fanbase growth was slower than anticipated, the group’s long term growth outlook remains positive.
Major Recovery Expected in 2026
Kiwoom Securities predicts YG Entertainment’s 2026 revenue will reach 568.8 billion won with operating profit of 85.7 billion won, reflecting increases of 7.7 percent in sales and 17.9 percent in profit compared to the previous year.
The report describes 2026 as a turning point as the company enters a full scale earnings recovery phase.
BLACKPINK and BIGBANG Could Drive Additional Upside
Significant upside potential remains if major touring activities expand. BLACKPINK’s current encore tour plan includes approximately ten shows and an audience of around 600,000, but analysts believe expansion could further lift performance.
The possible return of BIGBANG also represents a major growth opportunity. Past BIGBANG tours attracted over one million attendees, and a comeback paired with large scale touring could contribute hundreds of billions of won in additional operating profit.
A Historic Moment for YG Entertainment
Analysts concluded that 2026 may become the year of YG Entertainment’s highest operating leverage in company history.
“With BLACKPINK, BABYMONSTER, and BIGBANG all active simultaneously, this could be the strongest earnings cycle the company has ever experienced,” the report stated.
As YG Entertainment prepares for a busy year filled with tours, comebacks, and global promotions, industry watchers are closely monitoring how its flagship artists will shape the company’s next chapter of growth.