Square Enix reports 88.6% operating profit jump driven by video game sales

Square Enix reported significant financial growth for the first quarter of the fiscal year ending March 2027. Net sales rose 32.3% to ¥78.4 billion, while operating profit increased 88.6% year-over-year to ¥17 billion. Net profit saw a substantial jump of 175.7%, reaching ¥13.2 billion.

The Digital Entertainment division was the primary driver of this performance, with operating profit in this segment rising 91.8%. Key contributors included the successful multiplatform launch of Final Fantasy VII Rebirth on Nintendo Switch 2 and Xbox Series X/S, as well as the title The Adventures of Elliot: The Millennium Tales.

In the MMO sector, Final Fantasy XIV saw increased revenue and player activity following the announcement of its upcoming expansion, Evercold. While revenue in the MMO segment grew, profit margins were slightly impacted by development expenses related to the new expansion. The company also noted strong performance from its catalog of older titles and live-service games such as Dissidia Duellum Final Fantasy and Dragon Quest Smash/Grow.