Bandai Namco Reports Mixed Results Despite Record First Quarter

Bandai Namco has announced its record results for the first quarter of the fiscal year ending March 31, 2026. However, the company’s Digital segment, which encompasses its gaming operations, saw notable declines due to a reduced number of title releases compared to the same period last year.

For the first three months, the company's net sales reached ¥328.4 billion ($2 billion), reflecting a 9.3% increase. Operating profit rose to ¥69.2 billion ($436.7 million), marking an impressive 33.3% growth, while ordinary profit also increased by 36.3% to ¥74.4 billion ($469.5 million).

The standout performer for Bandai Namco was its Toys and Hobby segment, which experienced a remarkable sales surge of 45.9% and a profit increase of 25.4%. Additionally, the company benefited from a refund related to U.S. tariffs. The amusement facilities segment contributed significantly as well, with net sales from existing locations in Japan climbing 7.6% year-on-year.

In contrast, the Digital segment faced challenges, with both sales and profit declining. Sales fell by 15.6% to ¥90.9 billion ($573 million), while profit dropped 30.9% to ¥15 billion ($94.5 million). During this quarter, the Home Console Game segment managed to sell 6.9 million units, a stark drop from the 10.8 million units sold in the previous quarter, which also featured 15 new title releases, including a major title. These figures do not include localized or platform-specific versions.

Despite the declines, core game app titles maintained their popularity throughout the first quarter. Bandai Namco has stated its commitment to strengthening development capabilities to create an optimized title portfolio and enhance its network content earnings base.

Looking ahead, the company has several new titles slated for release, including "Ace Combat 8: Wings of Theve" on October 2, 2026 and "Dragon Ball Xenoverse 3" in 2027.

Bandai Namco has revised its half-year forecast for the Digital Contents segment, now anticipating sales to rise by 10% from the prior estimate to ¥200 billion ($1.2 billion), which represents a 31.5% decline year-on-year. Operating profit is projected to be ¥26.5 billion ($167 million), an 11.5% increase from the previous forecast but down 10.8% compared to last year.

While the company has not modified its full-year projections, it plans to reassess based on market changes, fan demands. The performance trends of major home console titles expected in the third quarter and later, as well as during critical selling seasons.