Square Enix (9684) Q2 2026 earnings summary

Executive summary

• Net sales for the six months ended September 30, 2025, were ¥133.8B, down 15% year-over-year, while operating income rose 28.8% to ¥27.2B and ordinary income increased 57.4% to ¥28.5B, driven by improved profitability in Digital Entertainment.

• Profit attributable to owners of parent declined 14.5% to ¥10.0B, impacted by ¥9.8B in reorganization costs recognized as an extraordinary loss.

• Comprehensive income decreased 25.4% year-over-year to ¥9.0B.

Financial highlights

• Operating income margin improved to 20.4% from 13.4% year-over-year, and ordinary income margin rose to 21.3% from 11.5%.

• Earnings per share (basic) for the period was ¥27.89, calculated post-stock split.

• Equity ratio rose to 81.3% as of September 30, 2025.

• Net assets stood at ¥333.8B, down ¥2.5B from March 31, 2025, mainly due to dividend payments.

• Cash and deposits at ¥243.3B as of September 30, 2025.

Outlook and guidance

• Full-year forecast for fiscal year ending March 31, 2026: net sales ¥280.0B (down 13.7% year-over-year), operating income ¥41.0B (up 1.0%), profit attributable to owners of parent ¥16.9B (down 30.8%), EPS ¥46.88 (post-stock split).

• Forecast revision announced, reflecting extraordinary loss and business environment.