Square Enix Posts First Profit Growth in 4.5 Years, Led by FFVII Rebirth
The results come as Singapore-based investment fund 3D Investment Partners has been increasing its stake in Square Enix, and the company's strong start to the fiscal year may influence ongoing discussions about its management.
Key Facts
- Square Enix Holdings reported first quarter fiscal 2027 results on August 10, 2026, covering April 1 to June 30.
- Net sales rose 32.3 percent year on year to 78.423 billion yen.
- Operating income rose 88.6 percent to 17.008 billion yen, and ordinary income rose 172.4 percent to 18.766 billion yen.
- This is the first quarter with year-on-year revenue and profit growth since the third quarter of fiscal year ending March 2022.
- Final Fantasy VII Rebirth for Nintendo Switch 2, Xbox Series X|S, and Microsoft Store, and Adventure Elliot's Millennial Story were cited as key contributors.
Reporting from 2 sources: 4Gamer.net, Automaton.
Square Enix Holdings reported its consolidated results for the first quarter of fiscal year ending March 2027 on August 10, 2026, covering April 1 to June 30. The company recorded net sales of 78.423 billion yen, up 32.3 percent year on year, operating income of 17.008 billion yen, up 88.6 percent, and ordinary income of 18.766 billion yen, up 172.4 percent. This marks the first quarter with year-on-year revenue and profit growth since the third quarter of fiscal year ending March 2022, roughly four and a half years ago. The Digital Entertainment segment drove the gains, with sales up 51.8 percent to 49.96 billion yen and operating income up 91.8 percent to 15.583 billion yen. Within that segment, HD games saw sales rise by 8.8 billion yen to 17.7 billion yen and operating income increase by 5.1 billion yen to 6.1 billion yen. The company attributed the performance to new titles such as Final Fantasy VII Rebirth for Nintendo Switch 2, Xbox Series X|S, and Microsoft Store, and Adventure Elliot's Millennial Story, along with strong catalog sales. MMO revenue and profit also grew, though profit rose only slightly by about 30 million yen due to costs for the upcoming expansion 8.0, Silver Wanderer, set for early 2027. Smart device and PC browser segments also improved, supported by Dissidia Duellum Final Fantasy and Dragon Quest Smash Glow. Full-year forecasts remained unchanged.
- Digital Entertainment accounted for roughly 17 billion yen of the company's 19.2 billion yen year-on-year sales increase.
- HD games posted sales of 17.7 billion yen, up 8.8 billion yen, and operating income of 6.1 billion yen, up 5.1 billion yen.
- Final Fantasy XIV activity improved following the announcement of its latest expansion, but profit rose only about 30 million yen because costs for expansion 8.0, Silver Wanderer, were booked early.
- Dissidia Duellum Final Fantasy and Dragon Quest Smash Glow contributed to gains in the smart device and PC browser segments.
- The company left full-year forecasts unchanged. The earnings presentation's new title lineup does not show major releases concentrated in the second half of the fiscal year, suggesting the first quarter's profit level is not expected to persist.
- Singapore-based investment fund 3D Investment Partners has been increasing its stake in Square Enix. Late last year the fund published a presentation pointing out management issues, which drew attention.
- Upcoming releases include Final Fantasy Resonance on October 22, 2026, Dragon Quest Monsters 4: Bianca and Flora of the Withered Tree on December 3, 2026, and Final Fantasy VII Revelation, the final entry in the remake series, in spring 2027.
Synthesized by Yomimono from the 2 cited sources below, including Japanese-language reporting where cited, then editorially reviewed before publishing.