Koei Tecmo Holdings Co., Ltd. (TSE: 3635), the Yokohama-headquartered game publisher and IP holder behind Nobunaga's Ambition, Romance of the Three Kingdoms, Dynasty Warriors and the Atelier series, reported FY3/2026 consolidated J-GAAP results showing a fifth consecutive year of profit growth and another set of record headline figures. Revenue rose 6.3% year-on-year to ¥88,393 million, operating profit advanced 15.7% to ¥37,168 million, ordinary profit climbed 14.0% to ¥57,000 million, and net profit attributable to shareholders rose 13.8% to ¥42,830 million. Basic EPS came in at ¥131.77 versus ¥119.14.
The operating margin expanded to 42.0% from 38.6% — among the highest in the listed Japanese gaming sector — while ROE attributable to owners eased modestly to 18.6% from 20.7% on a larger equity base. Comprehensive income surged 128.2% to ¥70,139 million, helped by improvements in equity-investment marks against an exceptionally weak prior-year reference.
Cash flow and balance sheet
Operating cash flow held above ¥33 billion at ¥33,010 million (vs. ¥34,369 million), while investing activities used ¥12,080 million versus a ¥40,973 million inflow in the prior year — when the company had drawn down securities holdings. Financing activities provided ¥12,869 million after a ¥63,175 million outflow in FY3/2025. Cash and equivalents at year-end stood at ¥59,334 million. Total assets grew to ¥313,662 million from ¥209,828 million, net assets reached ¥272,536 million, and the equity ratio remained very high at 86.7%, slipping marginally from 89.9% on the back of a temporary expansion of corporate bonds payable.
Dividend raised to ¥66 with a special policy revision
The FY3/2026 year-end dividend was set at ¥66.00, lifting the annual payout to ¥66.00 from ¥60.00 a year earlier and equating to total cash dividends of ¥22,049 million. The consolidated payout ratio of 50.1% was kept in line with the company's policy ceiling around 50%. The board separately published a "Notice on Revision of Dividend Forecast" on the same day to formalize the change.
FY3/2027 guidance: reinvestment cycle weighs on profit
For FY3/2027 management guides revenue of ¥90,000 million (+1.8%) but operating profit down 13.9% to ¥32,000 million, ordinary profit down 26.3% to ¥42,000 million, and net profit down 27.6% to ¥31,000 million, with H1 cumulative guidance pointing to a 33.2% net-profit drop. The annual dividend forecast is set at ¥48.00 (year-end only), implying a payout ratio of 50.3% on the lower guided earnings. The contraction reflects a step-up investment cycle for new title development and engine renewal rather than a structural decline in the catalog, alongside more conservative assumptions for the FY27 swing in equity-investment marks.
| Metric | FY3/2026 | FY3/2025 | YoY |
|---|---|---|---|
| Revenue (¥ million) | 88,393 | 83,150 | +6.3% |
| Operating profit (¥ million) | 37,168 | 32,119 | +15.7% |
| Ordinary profit (¥ million) | 57,000 | 49,988 | +14.0% |
| Net profit (¥ million) | 42,830 | 37,628 | +13.8% |
| Basic EPS (¥) | 131.77 | 119.14 | +10.6% |
| Operating margin | 42.0% | 38.6% | +3.4pp |
| ROE (owners) | 18.6% | 20.7% | −2.1pp |
| Equity ratio | 86.7% | 89.9% | −3.2pp |
| Annual dividend (¥) | 66.00 | 60.00 | +10.0% |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.