Square Enix Holdings Co., Ltd. (TSE: 9684) reported consolidated full-year results for the fiscal year ended March 31, 2026 (FY3/2026) under Japanese GAAP. Revenue fell 8.3% year-on-year to ¥297,661 million, but operating profit jumped 34.9% to ¥54,736 million — operating margin expanded to 18.4% from 12.5%. A ¥7.2 billion FX gain lifted ordinary profit by 57.5% to ¥64,469 million. After a ¥12.1 billion organizational-reform charge booked as an extraordinary loss, net profit attributable to owners rose 21.3% to ¥29,616 million. Basic EPS came in at ¥82.15 versus ¥67.79 (split-adjusted). ROE rose to 8.7% from 7.5%.
HD games strong: FFT Ivalice Chronicles, Dragon Quest I&II, DQ VII Reimagined
The Digital Entertainment segment — Square Enix's largest — saw revenue fall 16.3% to ¥172.9 billion but segment operating profit jumped 28.0% to ¥43.4 billion. Within Digital Entertainment, HD (high-definition console) games grew both top and bottom line, lifted by new releases of Final Fantasy Tactics — Ivalice Chronicles, Dragon Quest I & II remakes, and Dragon Quest VII Reimagined, plus catalog-title revenue above prior year. MMO fell both top and bottom line as FY25 was lapping the launch of FFXIV's "Dawntrail" expansion (a high-base comparison). Smart-device / PC browser revenue softened on weak legacy titles, but margin improved on payment-method diversification.
Rights & Property: OP +85% on IP royalty growth
The Rights & Property segment — licensing of Square Enix IP — was the standout: revenue rose 31.4% to ¥25.1 billion and segment operating profit jumped 85.2% to ¥11.2 billion, driven by major IP royalty income. Amusement (arcade operations + arcade-machine sales) revenue rose 1.3% to ¥72.1 billion with segment OP +13.1% to ¥8.9 billion as existing-store revenue and amusement-prize sales offset weaker arcade-machine sales. Publishing (comic magazines, game-related books) revenue fell 3.4% to ¥29.7 billion and segment OP fell 10.3% to ¥9.8 billion on weaker comic-volume sales.
Balance sheet: cash builds to ¥276 billion; 1-for-3 stock split executed
Total assets reached ¥438,018 million (+5.3%) with cash and deposits up ¥28.3 billion. Net assets rose 3.8% to ¥349,224 million and the equity ratio held at 79.6% (vs 80.7%). Book value per share rose to ¥966.63 (split-adjusted) from ¥931.75. Square Enix executed a 1-for-3 common-stock split effective October 1, 2025 (record date September 30, 2025) — all per-share figures shown are post-split. Issued shares rose from 122.5 million (pre-split) to 367.6 million (post-split). Operating cash flow strengthened 20.6% to ¥51.6 billion; investing cash flow consumed ¥6.2 billion (vs ¥15.1 billion); financing cash flow consumed ¥18.4 billion (vs ¥6.6 billion) on dividends. Period-end cash and equivalents reached ¥275.8 billion.
Dividend & FY27 guidance
The FY3/2026 annual dividend totals an effective ¥129 per share (¥54 interim + ¥25 year-end post-split = ¥75 final pre-split equivalent + ¥54 interim) with a 52.3% payout ratio and 4.5% DOE. For FY3/2027, the annual dividend is guided at ¥43 (¥18 interim + ¥25 year-end, post-split) for a 50.0% payout ratio. Full-year FY3/2027 guidance points to revenue of ¥298,000 million (+0.1%), operating profit of ¥49,000 million (-10.5%), ordinary profit of ¥49,000 million (-24.0%) as the FY26 FX gain doesn't recur, and net profit attributable to owners of ¥31,000 million (+4.7%) with EPS of ¥85.99.
| Metric | FY3/2026 | FY3/2025 | YoY |
|---|---|---|---|
| Revenue (¥ billion) | 297.7 | 324.5 | -8.3% |
| Operating profit (¥ billion) | 54.7 | 40.6 | +34.9% |
| Ordinary profit (¥ billion) | 64.5 | 40.9 | +57.5% |
| Net profit attrib. to owners (¥ billion) | 29.6 | 24.4 | +21.3% |
| Basic EPS, split-adj. (¥) | 82.15 | 67.79 | +21.2% |
| Operating margin | 18.4% | 12.5% | +5.9pp |
| ROE | 8.7% | 7.5% | +1.2pp |
| Digital Entertainment op. profit (¥ billion) | 43.4 | 33.9 | +28.0% |
| Rights & Property op. profit (¥ billion) | 11.2 | 6.1 | +85.2% |
| Amusement op. profit (¥ billion) | 8.9 | 7.9 | +13.1% |
| FY27 operating profit guidance (¥ billion) | 49.0 | — | -10.5% |
| FY27 net profit attrib. guidance (¥ billion) | 31.0 | — | +4.7% |
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.