Square Enix has reported a major increase in first-quarter profit, with strong performance from its Digital Entertainment business helping drive a 175.5% year-over-year increase.

The company recorded net sales of ¥78.4 billion ($492.3 million), up 32.3% from the same period last year. Operating income rose 88.6% to ¥17 billion ($106.7 million), while profit reached ¥13.2 billion ($82.9 million).

Digital Entertainment was the main driver behind the results, with net sales climbing 51.8% to ¥49.9 billion ($313.3 million).

The company's HD Games business performed particularly well, helped by the release of Final Fantasy 7 Rebirth on additional platforms.

The numbers
Square Enix's first-quarter results were:

Net sales: ¥78.4 billion ($492.3 million), up 32.3%

Operating income: ¥17 billion ($106.7 million), up 88.6%

Profit: ¥13.2 billion ($82.9 million), up 175.5%

Digital Entertainment net sales: ¥49.9 billion ($313.3 million), up 51.8%

Within Digital Entertainment, operating income increased 91.8% to ¥15.5 billion ($97.3 million).

HD Games were the standout performers. Net sales in the segment nearly doubled, rising 98.8% to ¥17.7 billion ($111.1 million), compared with ¥8.9 billion during the same period last year.
Operating income jumped 510% to ¥6.1 billion ($38.2 million), up from ¥1 billion ($6.2 million) a year earlier.

Final Fantasy 7 Rebirth leads the growthSquare Enix attributed much of the HD Games performance to Final Fantasy 7 Rebirth, which launched during the quarter on Nintendo Switch 2, Xbox Series X|S and the Microsoft Store.

The game originally launched on PlayStation 5 in February 2024 before coming to PC in January 2025.

Additional sales came from The Adventures of Elliot: The Millennium Tales and stronger performance from Square Enix's existing catalog.

The company also released several other titles during the quarter, including Octopath Traveler and Octopath Traveler 2 on Switch 2, Star Ocean: The Second Story R on Switch 2 and Final Fantasy X/X-2 HD Remaster.

MMOs and mobile games also contributeSquare Enix's MMO business also recorded growth during the quarter.

Net sales increased 32.2% to ¥12.7 billion ($79.7 million), while operating income remained broadly stable at ¥3.6 billion ($22.6 million).

The company linked the increase in sales to improved user activity following the announcement of an upcoming expansion for Final Fantasy 14.

Square Enix also said profits increased slightly due to the advance recognition of expenses associated with the expansion, which is planned for release in early 2027.

The Smart Devices/PC Browser business delivered another strong quarter. Net sales increased 35.6% to ¥19.4 billion ($121.8 million), while operating income climbed 72.7% to ¥5.7 billion ($35.7 million).

Dissidia Duelum Final Fantasy and Dragon Quest Smash/Grow were among the titles supporting the segment's performance.

Digital sales continue to dominateSquare Enix sold 7.38 million game units during the quarter, compared with 4.01 million during the same period last year.

Of those sales, 730,000 were physical copies, while 6.65 million were digital downloads.

The figures underline the continued importance of digital sales to Square Enix, with downloads accounting for the overwhelming majority of units sold during the quarter.

Despite the strong first-quarter results, Square Enix has not changed its outlook for the rest of the fiscal year.

The company maintained the consolidated full-year forecast it announced on May 14, 2026, suggesting it expects the current momentum to continue in line with its existing expectations.

For now, Final Fantasy 7 Rebirth's arrival on additional platforms has provided a significant boost to Square Enix's HD Games business, helping the publisher deliver one of its strongest first quarters in recent years.