Square Enix raises its forecast after a stronger first half

Square Enix has raised its full-year forecast after reporting stronger sales and operating income for the six months ended September 30. The company now expects ¥310 billion in net sales and ¥59 billion in operating income for the fiscal year ending March 31, 2027. Its previous estimates were ¥298 billion and ¥49 billion, respectively.

The first-half results grew across several parts of the business, with Digital Entertainment providing the clearest lift. Net sales for the period rose 21.9% year over year to ¥163.2 billion, while operating income increased 42.2% to ¥38.8 billion. Square Enix attributed the improvement to new games, catalogue sales and stronger activity in its online games.

New releases and older games both contributed

Square Enix pointed to Final Fantasy VII Rebirth on Nintendo Switch 2, Xbox Series X|S and Windows, as well as The Adventures of Elliot: The Millennium Tales, as drivers for its HD games business. Sales of catalogue titles also grew. The results suggest the company benefited from both recent releases and continued demand for games already in its library.

Its MMO business also improved, with the company citing higher player activity after it announced the latest Final Fantasy XIV expansion. The report does not specify how much the announcement contributed, but it identifies the increase as one factor behind the segment’s stronger performance.

The raised forecast is not an across-the-board year-over-year gain

Square Enix lifted its operating income forecast by 20.4% compared with its previous estimate. It also raised its forecasts for ordinary income from ¥49 billion to ¥59 billion and profit attributable to owners of the parent from ¥31 billion to ¥37 billion. The company left its dividend forecast unchanged.

Compared with the previous fiscal year, the revised outlook is more mixed. Square Enix expects net sales and operating income to finish above last year’s results, but its ¥59 billion ordinary income forecast is below the ¥64.5 billion it reported for the year ended March 2026. The revision reflects better expectations than the company had earlier, rather than growth in every measure against the previous year.

Amusement and publication also contributed to the half. The amusement business reported higher sales and operating income, supported by increased same-store sales and sales of prize items. The company’s publication segment also grew, though Digital Entertainment remained the main driver of the stronger results.

The second half will show whether momentum holds

Square Enix’s forecast does not depend on a single named game. The company has cited performance across HD releases, mobile and browser games, catalogue sales and Final Fantasy XIV. That breadth gives the revised outlook a firmer base than a result driven by one short-lived launch spike, though the company has not broken down the precise contribution of each title.

Its full-year forecast remains just that: an estimate based on results through September and the company’s view of the remaining fiscal year. The next financial update will show whether the first-half gains carried through the holiday period and into March.