Square Enix Boosts Profitability Despite Lower Sales and Signals Cautious FY2027 Outlook

The latest announcement is out from Square Enix Holdings Co ( (JP:9684) ).

Square Enix reported consolidated net sales of ¥297.7 billion for the year ended March 31, 2026, down 8.3% year on year, but significantly improved profitability with operating income up 34.9% to ¥54.7 billion and ordinary income up 57.5% to ¥64.5 billion. Profit attributable to owners of parent rose 21.3% to ¥29.6 billion, lifting return on equity and operating margin, while stronger operating cash flow pushed cash and cash equivalents to ¥275.8 billion.

The company maintained a robust financial position with total assets of ¥438.0 billion and an equity ratio of 79.6%, supported by higher net assets and increased net assets per share. It executed a three-for-one stock split in October 2025 and adjusted its dividend structure, with FY2026 cash dividends aligned to a roughly unchanged annual level in pre-split terms, and projects flat sales but lower operating and ordinary income in FY2027, signaling a cautious earnings outlook despite stable shareholder returns.

The most recent analyst rating on (JP:9684) stock is a Hold with a Yen2300.00 price target. To see the full list of analyst forecasts on Square Enix Holdings Co stock, see the JP:9684 Stock Forecast page.

More about Square Enix Holdings Co

Square Enix Holdings Co., Ltd. is a Japanese entertainment company best known for developing and publishing video games, including major franchises in the role-playing and action genres. Listed on the Tokyo Stock Exchange Prime Market, the group also engages in related digital entertainment and content businesses targeting global consumer and gaming markets.

Average Trading Volume: 1,276,814

Technical Sentiment Signal: Buy

Current Market Cap: Yen905.3B

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