Square Enix Financial Results Briefing Session: Nine-Month Period Ended December 31, 2025

The financial results for the nine-month period ending December 31, 2025, indicate a strategic shift for Square Enix, characterized by a decline in overall net sales alongside a significant improvement in operating profitability. For the first three quarters of the fiscal year, net sales reached 215.4 billion yen, down from 248.5 billion yen in the same period the previous year. Despite this contraction, operating income rose to 46.3 billion yen, representing a robust operating margin of 21.5 percent, up from 13.4 percent in the prior year.

The Digital Entertainment segment, which remains the company’s primary revenue driver, saw net sales decline to 122.3 billion yen due to lower performance in MMO titles and smart device games. However, the segment’s operating income increased to 35.5 billion yen, bolstered by steady sales of new HD game titles and improved profitability in mobile gaming through the diversification of payment methods. Total unit sales for the period reached 18.02 million units, with the North American and European markets accounting for the majority of volume.

Other business segments showed mixed results. The Amusement segment maintained stable revenue of 53.2 billion yen with improved operating margins, while the Publication segment experienced a slight decline in both sales and income, reflecting a broader trend in the print media market. Conversely, the Merchandising segment performed strongly, with operating income nearly doubling to 9.8 billion yen, driven by increased royalty income from key intellectual properties.

Reflecting these performance trends, the company has revised its full-year forecast for the fiscal year ending March 31, 2026. While the net sales projection remains unchanged at 280 billion yen, the company has upwardly revised its operating income forecast to 49 billion yen and profit attributable to owners of the parent to 27 billion yen, signaling confidence in sustained operational efficiency for the remainder of the fiscal year.