Bandai Namco Holdings raised its full-year earnings forecast after second-quarter results exceeded projections, driven by strong demand for plastic models and Tamagotchi products. The Tokyo-based entertainment company now expects revenue of ¥1.25 trillion ($8.2 billion) for the fiscal year ending March 2026, up from a May projection of ¥1.2 trillion.
The toy and hobby division posted record results with revenue climbing 9% to ¥317.8 billion ($2.1 billion) in the six months through September, while segment profit advanced 8.9% to ¥65 billion ($425 million). Sales of Gunpla model kits, collectible figures, and character lottery products targeting adult consumers performed well, though tariff increases reduced operating profit by approximately ¥2 billion ($13 million).
The digital business saw profit decline 16.4% despite a 1.3% revenue gain, as weaker sales of catalog titles offset the success of new mobile game SD Gundam G Generation Eternal. Console release Elden Ring Nightreign performed strongly worldwide, yet overall profitability suffered from differences in the game portfolio mix versus the prior year.
The Gundam franchise’s latest film Gundam GQuuuuuuX generated strong box office and licensing revenue, contributing to the company’s IP-focused strategy. Same-store sales at domestic amusement facilities rose 6% year-over-year.
For the full year, Bandai Namco projects operating profit of ¥165 billion ($1.08 billion), representing an 8.5% decline from the previous year but a 13.8% increase from its initial forecast.
