Square Enix Holdings has released its financial results for the nine-month period ended December 31, 2025, outlining declining sales but sharply improved profitability across its business, including console games, PC, MMO, and mobile-related operations. The company reported that operating income growth was supported by stronger catalog performance, cost management, and improved margins across multiple segments.
Within the Digital Entertainment segment, which includes console, PC, and smart device games, net sales totaled ¥122,356 million, representing a 23.7 percent year-on-year decline. Despite this decrease, operating income for the segment rose 28.3 percent to ¥35,519 million, indicating substantial profitability improvements.
The HD Games sub-segment, which represents Square Enix’s console gaming business, recorded lower net sales compared to the prior year. This decline was primarily attributed to fewer major new releases during the period, as the previous fiscal year benefited from titles such as DRAGON QUEST III HD-2D Remake. However, operating income in the console division increased year-on-year. Square Enix cited steady sales of newly launched titles and stronger sales from its back catalog as key factors, reflecting improved monetization of older titles.
MMO Games within the Digital Entertainment segment posted lower results compared to the previous year, which had benefited from the launch of the FINAL FANTASY XIV: Dawntrail expansion. Smart Devices and PC games also saw sales decline, though income improved due to diversification of payment methods and better cost control.
At the company-wide level, Square Enix reported consolidated net sales of ¥215,455 million, down 13.3 percent year-on-year. Operating income rose 39.0 percent to ¥46,387 million, while ordinary income increased 40.8 percent to ¥53,169 million. Profit attributable to owners of the parent reached ¥25,607 million, up 3.6 percent. Foreign exchange gains of ¥5,544 million contributed positively, while reorganization costs totaling ¥11,950 million weighed on net profit.
Merchandising emerged as the strongest growth segment, with sales rising 30.9 percent to ¥19,394 million and operating income surging 98.9 percent to ¥9,889 million, driven by royalty income from key intellectual properties. The Amusement business posted modest income growth, while Publication experienced slight declines in both sales and income.
Square Enix also revised its full-year forecast for the fiscal year ending March 31, 2026. The company now expects net sales of ¥280,000 million, operating income of ¥49,000 million, ordinary income of ¥55,000 million, and net profit of ¥27,000 million.
Overall, the results suggest Square Enix is prioritizing profitability over volume, with console and PC gaming operations increasingly relying on higher-margin titles and long-term catalog performance rather than frequent large-scale releases.
