Koei Tecmo Holdings’ net profit rose 38.1% year on year to ¥18.6 billion in the first half of fiscal 2026, with gains from investments helping the company outperform its initial earnings forecasts. The Japanese publisher also raised its full-year financial outlook after recording higher sales and operating profit between April and September 2026.
Net sales increased 19.4% to ¥37.3 billion, while operating profit climbed 47.4% to ¥11.7 billion. Ordinary profit rose 43.4% to ¥25.5 billion. The results exceeded the company’s original expectations, with operating profit beating its forecast by 67.8%. Ordinary profit and net profit both more than doubled their respective forecasts, helped by non-operating gains, including interest income and profits from investment securities sales.
The Entertainment segment accounted for most of the company’s revenue, with sales rising to ¥34.2 billion from ¥28.5 billion a year earlier. Operating profit for the segment increased to ¥11.5 billion from ¥7.7 billion.
Console and PC sales grew to ¥17 billion from ¥12.5 billion, supported by back-catalogue games and downloadable content. DLC revenue more than doubled to ¥1.6 billion. The company sold approximately 2.45 million units in the first quarter and 2.4 million in the second quarter.
Online and mobile revenue increased to ¥16.9 billion from ¥15.8 billion, with existing games and licensing royalties supporting the segment. Amusement revenue also rose to ¥2.4 billion, while the real estate business generated ¥700 million, helped by the KT Zepp Yokohama concert venue.
Koei Tecmo has raised its full-year sales forecast to ¥91 billion, up 2.9%, and now expects operating profit of ¥34 billion. The revised operating profit target is ¥2 billion higher than its initial forecast, although it remains below the ¥37.2 billion recorded in the previous fiscal year. The company expects full-year net profit to reach ¥37 billion.
The publisher also increased its annual dividend forecast from ¥48 to ¥56 per share. Its revised outlook assumes an exchange rate of ¥148 per US dollar, compared with the previous assumption of ¥142. Koei Tecmo said each one-yen change in the exchange rate can affect operating profit by ¥100 million or more.
Its upcoming releases for the second half of the fiscal year include Attack on Titan 3, scheduled for December 2026, and Wo Long 2: Wings of Ember, planned for March 2027. Other projects include a Dynasty Warriors 3 remaster, which is out now, as well as Atelier Karia and expansions for Pokémon Pokopia. The company said its full-year forecast accounts for all new releases scheduled within the fiscal year.
Koei Tecmo’s total assets increased to ¥360.8 billion as of the end of September, compared with ¥313.7 billion at the end of March. Its equity ratio stood at 80.2%, while short-term borrowings increased by ¥10 billion. The company is also working towards its fourth Medium-Term Management Plan target of more than ¥100 billion in cumulative operating profit across fiscal 2025 to 2027.
