Square Enix (9684) Q1 2026 earnings summary

Executive summary

• Net sales, operating income, and profit attributable to owners declined year-over-year for the first quarter ended June 30, 2025.

• Digital Entertainment segment saw lower sales in HD Games, MMO, and Smart Devices/PC Browser, though some cost efficiencies improved profits in certain areas.

• Amusement segment achieved growth in both net sales and operating income, driven by higher same-store sales and prize item sales.

• Publication and Merchandising segments experienced year-over-year declines in both net sales and operating income.

• Comprehensive income declined 58.3% year-over-year to ¥4,552 million.

Financial highlights

• Q1 FY2026 net sales: ¥59.2B, down 15.2% year-over-year; operating income: ¥9.0B, down 16.8%; profit attributable to owners: ¥4.8B, down 54.8%.

• Ordinary income dropped to ¥6.8B from ¥15.2B year-over-year, impacted by a ¥2.1B foreign exchange loss.

• Gross profit for the quarter was ¥25.8B, down from ¥29.3B year-over-year.

• Basic earnings per share were ¥40.00, compared to ¥88.52 in the prior year.

• Cash and deposits decreased by ¥16.0B from March to June 2025.

Outlook and guidance

• Full-year net sales forecast revised to ¥280.0B, up 13.7% YoY; operating income forecast at ¥41.0B (+1.0%); profit attributable to owners forecasted at ¥28.7B (+17.6%).

• Basic EPS forecast for the year is ¥79.70, reflecting a planned 3-for-1 stock split.