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Square Enix Posts Strong Q1 Growth as Digital Entertainment Segment Leads the Charge

Adventures of Elliot and FF7 Rebirth.
Image: Adventures of Elliot and FF7 Rebirth

Square Enix has kicked off its fiscal year on a high note, posting a sharp jump in profit for the three-month period ended June 30, 2026.


Here is how the quarter shaped up on a consolidated basis:

  • Net sales: ¥78.4 billion ($492 million), up 32.3%

  • Operating income: ¥17 billion ($106 million), up 88.6%

  • Profit: ¥13.2 billion ($83 million), up 175.7%

  • Digital Entertainment net sales: ¥49.9 billion ($313 million), up 51.8%


HD Games Carry the Segment

Digital Entertainment operating income rose 91.8% to ¥15.5 billion ($97.3 million), and the HD Games sub-segment was clearly the standout performer.


  • Net sales: ¥17.7 billion ($111.1 million), up 98.8% from ¥8.9 billion ($5.8 million) a year earlier

  • Operating income: ¥6.1 billion ($38.2 million), up 510% from ¥1.0 billion ($6.2 million)


The bulk of this growth came from the multiplatform launch of Final Fantasy 7 Rebirth, which arrived on Nintendo Switch 2, Xbox Series X|S, and the Microsoft Store this quarter. The title originally debuted on PlayStation 5 back in February 2024 before coming to Windows in January 2025, so this release brought it to an entirely new set of players.


Other titles launched during the quarter include:

  • The Adventures of Elliot: The Millennium Tales (PS5, Xbox Series, PC)

  • Octopath Traveler (Switch 2)

  • Octopath Traveler II (Switch 2)

  • Star Ocean: The Second Story R (Switch 2)

  • Final Fantasy X/X-2 HD Remaster (digital release, with a physical version following)


MMO and Mobile Also Grow

The MMO sub-segment saw net sales climb 32.2% to ¥12.7 billion ($79.7 million), though operating income held roughly flat at ¥3.6 billion ($22.6 million). Square Enix said the numbers reflected "improved user activity" following the announcement of an upcoming Final Fantasy 14 expansion (EVERCOLD), adding that profits "increased slightly due to the advance recognition of expenses related to its planned release in early 2027."


Games for Smart Devices and PC Browser also had a solid quarter, with net sales up 35.6% to ¥19.4 billion ($121.8 million) and operating income up 72.7% to ¥5.7 billion ($35.7 million). Dissidia Duellum Final Fantasy and Dragon Quest Smash/Grow were named as key contributors.


On the unit sales front, the company moved 7.38 million units total in the quarter, up from 4.01 million a year ago. That breaks down to:

  • Physical (packaged): 0.73 million units (10%)

  • Digital (downloads): 6.65 million units (90%)


What's Coming Next

Square Enix has a busy pipeline heading into the back half of the fiscal year. Upcoming releases include:

  • Dragon Quest XI: Echoes of an Elusive Age S Definitive Edition, arriving September 24, 2026 for Switch 2

  • Kingdom Hearts Collection II to III, arriving October 8, 2026, for Switch 2, PS5, Xbox Series and PC

  • Final Fantasy Resonance, arriving October 22, 2026 for Switch, PS5, Xbox Series, and PC

  • Dragon Quest Monsters: The Withered World, arriving December 3, 2026, for Switch, Switch 2, PS5, Xbox Series, and PC

  • The Final Fantasy 14 expansion Evercold, targeted for early 2027


Despite the strong quarter, Square Enix has kept its consolidated full year forecast unchanged from what it announced on May 14, 2026, suggesting the company is taking a cautious approach even as momentum builds.


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