Nomura Slashes Coupang (CPNG) 2026 EPS Forecast Following $900M Fine and Regulatory Pressure

Core Viewpoint - Coupang Inc. is facing significant challenges due to regulatory pressure in South Korea and a substantial fine, leading to a drastic reduction in its earnings forecast for 2026 [1][2]. Financial Performance - In Q3 2025, Coupang reported consolidated revenue of $9.3 billion, marking an 18% year-over-year increase [2]. - The company's net income was $95 million, resulting in a diluted EPS of $0.05 [2]. - The Product Commerce segment generated $8 billion in revenue, a 16% increase, driven by a 10% rise in active customers to 24.7 million and a 5% increase in net revenue per active customer to $323 [2]. Regulatory Challenges - Nomura downgraded Coupang to Neutral from Buy, reducing the price target from $30 to $22 due to intensifying regulatory scrutiny and a projected fine of up to $900 million [1]. - The South Korean FTC has indicated aggressive administrative actions, prompting a 95% cut in Coupang's 2026 EPS forecast to $0.03 [1]. Growth Initiatives - The Developing Offerings segment, which includes Coupang Eats and international expansion into Taiwan, experienced rapid revenue growth of 32%, reaching $1.3 billion [2]. - Coupang is heavily investing in logistics and customer adoption in Taiwan, with management noting that customer behaviors are exceeding expectations [3].