Toho raised its full-year earnings forecast after the Demon Slayer anime film shattered box office records, though the revised outlook suggests declining profitability. The Japanese entertainment company now expects operating revenue of ¥360 billion ($2.38 billion) for fiscal 2026, up from a prior forecast of ¥300 billion, but operating profit of just ¥65 billion ($430 million), representing a mere 0.5% gain from last year.
The upward revision follows first-half results showing operating revenue climbed 17.1% to ¥191.7 billion ($1.27 billion), while operating profit advanced only 0.6% to ¥41.1 billion ($272 million). Net income rose 26.3% to ¥33.5 billion ($221 million).
Toho’s film division drove the revenue expansion, with theatrical admissions surging 27.6% to 27.4 million visitors. Demon Slayer: Infinity Castle became the highest-grossing Japanese film worldwide, while the live-action film Kokuho crossed ¥10 billion ($66 million) domestically. Detective Conan: One-eyed Flashback also delivered strong returns.
However, the company’s IP and anime segment posted a 19.5% profit decline despite revenue growth of 9%, reflecting higher costs from streaming distribution and licensing activities. The theatrical business similarly saw profits drop 19.6% even as revenue increased 7.2%.
Only the real estate division showed robust profit growth, with operating income jumping 18.3% on stable occupancy of 99.8%. The segment’s reliable cash flow continues subsidizing the company’s volatile entertainment operations.
