Koei Tecmo announced its financial results for the first quarter of fiscal year 2026, related to the period between April and June.
According to the presentation, sales were 17,368 million yen, up 17.4% year-on-year. Operating profit was 5,407 million yen (up 51.3% year-on-year) with a profit margin of 31.1%.
Moving on to the Entertainment Business, which includes video games, net sales were 15,930 million yen, up 17.28% year-on-year. Operating profit was 5,288 million yen, up 42.69% year-on-year.
This is thanks to increased sales for both consoles/PC and mobile games. Interestingly, we hear that operating profit was higher than expected during Q1.
The company also announced its earnings forecast for the full fiscal year at 90,000 million yen in sales. If achieved, it’d be a 1.8% increase year-on-year. Operating Profit is expected to be 32,000 million yen, down 13.9% year-on-year.
We also hear that Dead or Alive 6 has now sold over a million copies after the launch of Dead or Alive 6 Last Round. Of course, this is a cumulative number including both the original release and Last Round.
Wo Long 2: Wings of Ember and Attack on Titan 3 are the games considered “big” for the company for the current fiscal year.
The company’s growth investment strategy focuses mostly on proactively hiring more personnel and increasing salaries instead of external acquisition.
The current headcount is 2,835 employees, of which 1,793 are developers in Japan and 561 are developers overseas. Koei Tecmo also reveals that of these, over 2,700 use the in-house AIChat to increase operational efficiency through file translation, voice transcription, and more.
If you’d like to compare today’s numbers with historical data, you can read our report about the data from the previous quarter, announced in April. Koei Tecmo is the first major gaming company to announce its result this quarter, so you can expect many more over the coming few weeks.
