Key Facts
• Square Enix Holdings announced a special loss of ¥98 billion for Q2 FY2026.
• An additional ¥20 billion loss is expected from Q3 FY2026 onwards.
• The reorganization aims to adapt to global market shifts and AI advancements.
• FY2026 full-year net profit forecast revised down from ¥287 billion to ¥169 billion.
• Mid-term FY2026 results: revenue ¥133.9 billion (-15%), operating profit ¥27.3 billion (+28.8%).
• Collaboration with the University of Tokyo on AI research aims to automate 70% of QA/debugging by FY2027.
• Internal AI-themed business contests have led to multiple project developments.
Summary
Square Enix Holdings announced a ¥118 billion special loss due to a global reorganization of its overseas operations. This includes ¥98 billion recorded in Q2 FY2026 and an additional ¥20 billion expected from Q3 onwards. The restructuring aims to address market shifts, digital transformation, and AI advancements by transitioning from product-out to market-in development strategies. The company revised its FY2026 net profit forecast from ¥287 billion to ¥169 billion, while mid-term results showed a 15% revenue decline but a 28.8% increase in operating profit. Square Enix is also advancing AI research with the University of Tokyo, targeting 70% automation of QA and debugging tasks by FY2027. These efforts align with its broader strategy to enhance efficiency and competitiveness in the global market.
