Square Enix Holdings Co. reported a 64% jump in annual profit despite an overall sales decline, as blockbuster titles like Dragon Quest III and Final Fantasy XIV’s expansion outperformed expectations.
Net income rose to ¥24.4 billion ($162 million) for the fiscal year ended March, while total sales fell 8.9% to ¥324.5 billion, the Tokyo-based company said Tuesday. Operating profit increased 24.6% to ¥40.6 billion.
The developer cited stronger-than-anticipated performance from “Dragon Quest III: And Into Legend…” released in November, along with the successful Final Fantasy XIV expansion “Golden Legacy” that bolstered its MMO division.
Square Enix’s digital entertainment segment, which includes gaming, saw sales drop 16.8% to ¥206.5 billion, yet operating profit jumped 33% as the company reduced development costs and advertising expenses.
The publisher’s amusement business performed strongly with a 15.7% revenue increase, while its publishing unit declined slightly, feeling the impact from the previous year’s anime-boosted hit “The Apothecary Diaries.”
For fiscal 2026, Square Enix forecasts net income to rise 17.6% to ¥28.7 billion despite projecting a 13.7% drop in sales to ¥280 billion, signaling continued focus on high-margin properties rather than broader market share.
