Square Enix Holdings has raised its full-year financial forecast after reporting strong growth in game sales and profitability during the six months ending September 30, 2026. The company generated ¥163.2 billion in net sales, an increase of 21.9% year over year, while operating income climbed 42.2% to ¥38.8 billion.
Profit attributable to owners of the parent rose 184.2% to ¥28.6 billion. Following the results, Square Enix increased its annual net sales forecast from ¥298.0 billion to ¥310.0 billion and raised its operating income projection from ¥49.0 billion to ¥59.0 billion.
The Digital Entertainment division was the main contributor to the company’s improved performance. Segment revenue increased 33.7% to ¥97.7 billion, while operating income rose 63.5% to ¥32.9 billion.
Within that division, HD Games sales reached ¥35.6 billion, compared with ¥24.0 billion during the same period last year. Operating income more than doubled, increasing from ¥5.0 billion to ¥13.0 billion.
Square Enix attributed the improvement to new releases, including Final Fantasy VII Rebirth on Nintendo Switch 2, Xbox Series X|S, and Windows, alongside The Adventures of Elliot: The Millennium Tales. Stronger sales of previously released games also contributed to the results.
Combined unit sales across HD Games and MMO titles reached 14.87 million, up from 9.93 million a year earlier, representing growth of nearly 50%.
Digital downloads accounted for 13.35 million units, while physical copies contributed 1.52 million. North America and Europe were the largest markets, with 9.20 million units sold, followed by Japan at 2.88 million and Asia and other regions at 2.79 million.
Catalog titles were particularly important to the company’s performance, generating approximately 12.59 million unit sales compared with 8.48 million during the previous year.
The MMO business also recorded growth, with revenue increasing from ¥19.9 billion to ¥25.7 billion. Square Enix attributed the improvement to stronger player activity following the announcement of the latest Final Fantasy XIV expansion.
Meanwhile, the Smart Devices and PC Browser segment generated ¥36.3 billion, up from ¥29.0 billion. The company credited titles including Dissidia Duellum Final Fantasy and Dragon Quest Smash/Grow for the increase.
Outside Digital Entertainment, the Amusement division recorded a 13.2% increase in sales to ¥39.1 billion, while Publication revenue grew 9.9% to ¥15.8 billion.
Merchandising was the only other major segment to report a decline, with sales falling 9.6% to ¥11.5 billion. Square Enix explained that the previous year’s results benefited from royalty income associated with a key intellectual property.
Looking ahead, Square Enix has Dragon Quest Monsters: The Withered World scheduled for December 2026, followed by Final Fantasy XIV: Evercold on February 23, 2027.
