Bandai Namco Group: First Quarter Result Presentation FY2026.3

Key insights

7 takeaways

01
Bandai Namco achieved record-high first-quarter results for FY2026.3, with net sales reaching 300.4 billion yen and operating profit rising to 51.9 billion yen, an increase of 7.9 billion yen year-over-year.
02
The company upwardly revised its first-half operating profit forecast from 78.5 billion yen to 90.0 billion yen, though it maintained its full-year operating profit target of 145.0 billion yen due to uncertainties regarding upcoming title performance and seasonal trends.
03
The Digital segment saw a significant profit increase to 21.7 billion yen (up 7.0 billion yen), driven by the strong performance of 'ELDEN RING: Shadow of the Erdtree' (NIGHTREIGN), which contributed to 4.62 million new unit sales and 6.13 million repeat unit sales.
04
The Toys and Hobby segment remains the company's largest revenue driver, generating 146.8 billion yen in sales and 28.5 billion yen in profit during the first quarter.
05
Bandai Namco and Sony Group have entered a strategic partnership to collaborate on IP development, anime production, distribution, and the creation of new experiential entertainment technologies.
06
Management estimates that U.S. tariff policies will negatively impact operating profit by approximately 3.0 billion yen during the current fiscal year.
07
The company is preparing for increased second-quarter expenditures, specifically higher marketing costs for new product launches and the anticipated impact of tariffs.

Summary

Bandai Namco Group’s first-quarter results for the fiscal year ending March 2026 demonstrate record-high performance, characterized by strong global demand across its diversified portfolio of intellectual property and entertainment services. The company reported net sales of 300.4 billion yen and an operating profit of 51.9 billion yen, representing year-over-year growth of 19.8 billion yen and 7.9 billion yen, respectively. This growth was driven by consistent performance in established toy lines, such as Tamagotchi and Pretty Cure, alongside successful digital content releases, including the console title Elden Ring: Nightreign and the mobile game SD Gundam G Generation Eternal.

The company’s segment performance highlights the Toys and Hobby division as the primary revenue driver, contributing 146.8 billion yen in sales. The Digital segment also saw a significant profit increase to 21.7 billion yen, supported by a combined 10.75 million units in new and repeat game sales. While the Amusement segment experienced a slight decline in profit, the Visual and Music segment showed positive momentum through successful box office and streaming contributions from the Mobile Suit Gundam franchise.

In response to these first-quarter results, the company has revised its first-half earnings forecast upward, projecting net sales of 605 billion yen and an operating profit of 90 billion yen. However, management maintains a cautious outlook for the remainder of the fiscal year, citing potential headwinds such as increased marketing expenditures for upcoming product launches and an estimated 3 billion yen impact from U.S. tariff policies. Full-year projections remain unchanged as the company continues to assess market trends and seasonal performance. Strategic initiatives, including a new partnership with Sony Group and long-term preparations for the company’s 50th anniversary, remain central to its ongoing efforts to expand IP reach and enhance fan engagement globally.