Square Enix announced its financial results for the fiscal year that ended on March 31, 2026, alongside the forecast for the current fiscal year.
The documents provided by the company indicate that net sales for the whole company were 297,661 million yen (down 8.3% year-on-year), while operating income was 54,736 million yen (up 34.9％ year-on-year).
Looking at the Digital Entertainment Business, which includes video games, net sales were 172,883 million (down 16.3% year-on-year), while operating income was 43,363 million yen (up 28% year-on-year).
Going deeper into the breakdown, net sales for HD Games (single-player games for consoles and PC) were 76.5 billion yen,up by 1.4 billion yen year-on-year. Operating profit was 14.1 billion yen, up by 10.8 billion yen year-on-year.
This was due to steady sales of new games and growing sales of catalog games.
In the MMO subsegment, net sales were 41 billion yen, down by 14.5 billion yen year-on-year. Operating income was 15.1 billion yen, down by 6.8 billion yen year-on-year.
This is due to the comparison with the fiscal year in which the Dawntrail expansion for Final Fantasy XIV was released.
Lastly, mobile games recorded 55.2 billion yen in net sales, down by 20.6 billion yen year-on-year, and operating profit was 14.0 billion, up by 5.5 billion yen year-on-year.
Square Enix is still aiming to achieve its medium-term business plan, which targets an operating margin of 15% in the fiscal year ending on March 31, 2027, return on equity of at least 10%, and the allocation of at least 100 billion yen in strategic investment.
The margin target has already been secured for the fiscal year that just ended, since it was 18.4%, and Square Enix predicts it to be 16.4% in the current fiscal year.
Speaking for predictions for the current fiscal year ending in March 2027, Square Enix expects 298 billion yen in net sales, only 0.4 billion yen more than the fiscal year that just passed. Operating Income is expected to go down by 5,7 billion yen year-on-year, to 49 billion yen.
This appears to be a very conservative forecast, considering that Final Fantasy XIV’s next expansion Evercold is supposed to launch in January 2027, and the game will release on Nintendo Switch this summer. This should naturally cause MMO sales to rebound upward, but we’ll have to wait and see.
Incidentally, we get a hint of what Square Enix plans as the concept of its next medium-term business plans, which will be enacted from April 2027 onward.
“The group aims for stable profit expansion based on a lean and efficient business structure.”
If you’d like to compare these results with historical data, you can read our report about the past quarter, based on data released in February
Other gaming companies have already announced their financial results this quarter, including Koei Tecmo, Microsoft, Sony, Nintendo, Konami, Shift Up, Sega, Capcom, and Bandai Namco. You can expect more reports on this topic in the coming days and weeks.
