Sega Sammy Holdings projects ¥475 billion ($3.32 billion) in revenue for fiscal 2026, representing a 10.7% increase as the Japanese entertainment conglomerate bets on a pachinko machine comeback following recent setbacks in the segment.
The company expects operating profit to climb 10.1% to ¥53 billion ($371 million), with ordinary profit rising 5.4% to ¥56 billion ($392 million). However, net profit is forecast to decline 16.8% to ¥37.5 billion ($262 million), raising questions about the sustainability of the growth trajectory.
The optimistic forecast contrasts sharply with recent performance in Sega Sammy’s core pachinko and pachislot business, which experienced a 27% sales decline to ¥97.1 billion ($654 million) in fiscal 2025. The company attributes this downturn to post-pandemic normalization and strategic delays in releasing key titles.
Sega Sammy plans to launch multiple flagship pachislot titles including “Hokuto no Ken Tensei no Sho 2” and “Tokyo Revengers” to drive the projected 33.9% revenue surge in gaming machines. The entertainment content division faces headwinds from increased advertising spending and reduced income from Sonic film distribution.
Notably, the forecasts exclude potential impacts from recent acquisitions of GAN Limited and Stakelogic, which the company states are “currently under review”. This omission adds uncertainty to already ambitious projections for a business historically dependent on hit-driven cycles.
The company expects minimal impact from potential U.S. tariff increases on its operations.
