Yandex Q1 2026: Revenue Growth Decelerates but Profitability Surges on Cities Inflection
Yandex reported Q1 2026 revenue of RUB 372.7 bn (+22% YoY vs restated RUB 306.5 bn), a sharp deceleration from the 156.3% YoY growth recorded in H1 2025. Adjusted EBITDA surged 50% YoY to RUB 73.3 bn, with margin expanding 3.7 pp to 19.7%, while IFRS net profit swung to RUB 28.9 bn from a loss of RUB 10.8 bn a year ago.
Q1 2026 YoY Growth by Segment
Segment Drivers
The Cities segment (ride-hailing, e-commerce, food) was the standout, with revenue of RUB 210.5 bn (+18% YoY) and adjusted EBITDA surging 161% to RUB 21.5 bn, lifting margin from 4.6% to 10.2%. Personal Services revenue grew 30% to RUB 62.4 bn, with segment EBITDA turning positive at RUB 0.8 bn. B2B Tech posted 36% revenue growth to RUB 13.6 bn, with margin stable at 19.4%. Search & AI revenue declined 1% to RUB 122.6 bn, with margin compressing to 43.1% from 45.8%, reflecting a slowdown in search advertising. Autonomous tech (Yango) remained loss-making, with EBITDA of -RUB 5.4 bn.
Key Financial Figures (RUB bn)
| Metric | Q1 2025 (restated) | Q1 2026 | Change |
|---|---|---|---|
| Revenue | 306.5 | 372.7 | +22% |
| Adjusted EBITDA | 48.9 | 73.3 | +50% |
| Adjusted EBITDA margin | 16.0% | 19.7% | +3.7 pp |
| IFRS Net Profit | -10.8 | 28.9 | n/m |
Capital Allocation & Outlook
Shareholders approved a RUB 110/share dividend for FY 2025 (total ~RUB 42 bn), and the Board will consider a RUB 50 bn buyback for the long-term incentive programme on 4-May-2026. Net debt fell by RUB 7.8 bn quarter-on-quarter to RUB 87.0 bn, continuing deleveraging. The revenue deceleration from H1 2025's 156.3% reflects tough comps and Search slowdown, but the Cities profitability inflection and diversification into higher-margin services provide a solid base for margin expansion going forward.