Capcom Co., Ltd. (TSE: 9697), the Osaka-based publisher behind Resident Evil, Monster Hunter and Street Fighter, reported consolidated results for the first quarter of the fiscal year ending March 2027 — the three months to June 30, 2026 — under Japanese GAAP. Revenue rose 54.7% to ¥70,410 million, operating profit climbed 66.9% to ¥41,054 million, ordinary profit jumped 81.1% to ¥41,452 million, and net profit attributable to owners of the parent advanced 69.2% to ¥29,159 million. Basic earnings per share were ¥69.71, up from ¥41.21, and comprehensive income rose 78.9% to ¥29,694 million.
The scale of the beat is best seen in the margin: operating profit absorbed 58.3% of revenue, up from 54.1% a year earlier — an unusually high level even by the standards of a packaged-software publisher that has shifted most of its catalogue to digital distribution.
A new IP lands, and the catalogue keeps compounding
The core Digital Contents business sold 256 titles into 236 countries and regions during the quarter, moving 23.81 million units against 14.16 million a year earlier. The headline driver was 'Pragmata', a wholly original science-fiction action-adventure released in April for PlayStation 5, Xbox Series X|S, PC and Nintendo Switch 2. Aggressive promotion around the launch drew in new players and the game passed 2.5 million units worldwide. In June the company also brought 'Devil May Cry 5 Devil Hunter Edition' to Nintendo Switch 2, extending its multi-platform reach.
Catalogue sales did at least as much work. 'Resident Evil Requiem', released in February of the prior fiscal year, kept selling globally with the help of aggressive pricing and reached 8 million cumulative units, while older entries 'Resident Evil RE:4' and 'Resident Evil RE:2' continued to grow. 'Devil May Cry 5', originally released in 2019, passed 14 million cumulative units on the back of new-console availability and tie-ins with its screen adaptation, and Capcom announced 'Monster Hunter Wilds: Ascendance', a large expansion for the 2025 title, for release in 2027. Repeat titles alone accounted for 21.26 million units, up from 13.36 million. Digital Contents revenue rose 83.0% to ¥54,648 million with segment operating profit up 87.5% to ¥37,597 million.
Arcades expand, pachislot cools
The Amusement Facilities business lifted revenue 20.6% to ¥6,762 million on steady operation of existing sites and new-format store openings, though segment operating profit slipped 4.4% to ¥899 million; a character-goods and capsule-toy store opened in Saitama in April took the estate to 62 facilities. The Amusement Equipment business went the other way: revenue fell 9.1% to ¥7,097 million and operating profit dropped 17.6% to ¥4,045 million, with the smart-pachislot machine 'Resident Evil RE:3' shipping 17,000 units from May. The Other segment — screen, esports and character licensing, including the second season of Netflix's 'Devil May Cry' anime from May and the CAPCOM Pro Tour 2026 circuit — posted revenue of ¥1,902 million, down 14.6%.
Balance sheet strengthens further
Total assets edged up to ¥341,312 million from ¥339,307 million at the March year-end, while net assets rose to ¥286,924 million from ¥267,716 million. The equity ratio improved sharply to 83.9% from 78.8%, leaving the balance sheet close to debt-free. Shares issued stood at 533,011,246 with 114,690,695 held in treasury, and the average share count for the quarter was 418,316,649.
Guidance left untouched — the quarter to watch
The most striking feature of the release is what did not change. Capcom reiterated full-year FY3/2027 guidance of revenue ¥210,000 million (+7.5%), operating profit ¥83,000 million (+10.2%), ordinary profit ¥83,000 million (+12.0%) and net profit ¥58,000 million (+6.3%), with EPS of ¥138.65. On those numbers the first quarter alone delivered roughly 49% of the full-year operating-profit plan and about 50% of the net-profit plan — a front-loading that reflects the April release of 'Pragmata' and the pricing-led catalogue push, but which leaves the guidance looking conservative unless the remaining nine months are unusually quiet. The annual dividend forecast was also held at ¥46.00 (¥23.00 interim plus ¥23.00 year-end), up from ¥45.00 paid for FY3/2026.
Group priorities during the quarter were the continued strengthening of digital sales worldwide, growth investment in AI use, the proprietary game engine and other leading-edge R&D and development environments, and sustained spending on hiring, training and workplace facilities.
| Metric | Q1 FY3/2027 | Q1 FY3/2026 | YoY |
|---|---|---|---|
| Revenue (¥ billion) | 70.41 | 45.50 | +54.7% |
| Operating profit (¥ billion) | 41.05 | 24.60 | +66.9% |
| Ordinary profit (¥ billion) | 41.45 | 22.88 | +81.1% |
| Net profit attrib. to owners (¥ billion) | 29.16 | 17.24 | +69.2% |
| Basic EPS (¥) | 69.71 | 41.21 | +69.2% |
| Operating margin (%) | 58.3 | 54.1 | +4.2 pt |
| Game units sold (million) | 23.81 | 14.16 | +68.2% |
| Equity ratio (%) | 83.9 | 78.8 | +5.1 pt |
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.