Updated Mar 21, 2026 by Kadokawa Corporation
Kadokawa’s operating profit plummeted 59.7% to 6.3 billion yen for the first nine months of FY2026, while net income fell 70.0% to 2.2 billion yen on net sales of 202.9 billion yen.
The Publication and IP segment experienced a 90.2% decline in operating profit, driven by rising personnel costs and a lack of major domestic hits, despite growth in U.S. and Asian markets.
The Animation and Live-Action segment shifted to an operating loss of 904 million yen due to a reliance on new, less established titles compared to the previous year's major successes.
The Game segment, anchored by FromSoftware, saw an 11.6% revenue decline as the new title 'Elden Ring Nightreign' failed to match the high revenue baseline set by the previous year's 'Elden Ring' expansion and repeat sales.
Web Services recovered from prior cyberattack impacts to post a 21.5% increase in sales, providing a rare bright spot in the company's segment performance.
Kadokawa is pursuing a 'Global Media-Mix with Technology' strategy, marked by the acquisitions of Edizioni BD in Italy and SOZO Pte. Ltd. in Singapore to bolster international IP recognition.
Despite the significant quarterly downturn, the company maintained its full-year forecast of 278.2 billion yen in net sales and 10.3 billion yen in operating profit, while confirming a 30 yen per share annual dividend.
Kadokawa’s operating profit plummeted 59.7% to 6.3 billion yen for the first nine months of FY2026, while net income fell 70.0% to 2.2 billion yen on net sales of 202.9 billion yen.
The Publication and IP segment experienced a 90.2% decline in operating profit, driven by rising personnel costs and a lack of major domestic hits, despite growth in U.S. and Asian markets.
The Animation and Live-Action segment shifted to an operating loss of 904 million yen due to a reliance on new, less established titles compared to the previous year's major successes.
The Game segment, anchored by FromSoftware, saw an 11.6% revenue decline as the new title 'Elden Ring Nightreign' failed to match the high revenue baseline set by the previous year's 'Elden Ring' expansion and repeat sales.
Web Services recovered from prior cyberattack impacts to post a 21.5% increase in sales, providing a rare bright spot in the company's segment performance.
Kadokawa is pursuing a 'Global Media-Mix with Technology' strategy, marked by the acquisitions of Edizioni BD in Italy and SOZO Pte. Ltd. in Singapore to bolster international IP recognition.
Despite the significant quarterly downturn, the company maintained its full-year forecast of 278.2 billion yen in net sales and 10.3 billion yen in operating profit, while confirming a 30 yen per share annual dividend.