Square Enix announced its financial results for Q1 of the fiscal year, related to the period between April and June 2026.
According to the documents provided by the company, consolidated net sales for all of Square Enix’s businesses were 78,423 million yen (up 32.3％ year-on-year).
Operating income was 17,008 million yen (up 88.6％ year-on-year).
Looking at the Digital Entertainment business, which focuses on video games, net sales were 49,960 million yen (up 51.8% year-on-year), while operating income was 15,583 million yen (up 91.8% year-on-year).
If we go even further down the rabbit’s hole, net sales for HD Games were 17.7 billion yen, compared to 8.9 billion yen in the same period of the previous fiscal year. Operating income was 6.1 billion yen, compared to only 1 billion yen in the previous fiscal year.
This sharp increase was driven by “solid” performance of new games like Final Fantasy VII Rebirth for Xbox, Windows PC, and Switch 2, and The Adventures of Elliot: The Millennium Tales, on top of growth in sales of older games.
MMO Games saw net sales of 12.7 billion yen, compared to 9.6 billion yen in the same period of the previous fiscal year. Operating income was 3.6 billion yen, only 30 million yen higher than in the previous fiscal year.
The sharp increase in sales was driven by improved player activity in Final Fantasy XIV following the announcement of the upcoming expansion, Evercold. The limited growth in profits is simply due to the fact that Square Enix has started recognizing upfront costs before the expansion’s release in January 2027.
Lastly, games for smartphones generated 19.4 billion yen, growing from 14.3 billion yen in net sales, while operating income was 5.7 billion yen, up from 3.3 billion yen.
This was mainly thanks to Dissidia Duellum Final Fantasy and Dragon Quest Smash/Grow.
This was certainly a considerable recovery compared to the previous fiscal year, which was mostly very negative, and Square Enix has a chance to make it big with Evercold launching before the end of the current fiscal year, although it’s likely that Final Fantasy VII Revelation will come in the next, due to its Spring 2027 release window.
Other gaming companies have already announced their financial results this quarter, including Koei Tecmo, Capcom, Microsoft, Konami, Sony, Bandai Namco, Nintendo, Sega, and Take-Two. You can expect more reports on this topic in the coming days and weeks.
