Bandai Namco reports "record-high" performance for the first quarter of 2026
In its first quarter of fiscal year 2026, Bandai Namco reported achieving unprecedented results, with an increase in net sales by 7.1% and a rise in operating profit by 17.9% compared to the previous year.
This growth is largely attributed to the significant upsurge in sales of the Mobile Suit Gundam franchise.
Financial Overview
Breakdown for the initial quarter ending March 31, 2026:
- Net sales: ¥300 billion ($2 billion), a 7.1% increase from the previous year
- Operating profit: ¥51.9 billion ($399 million), up by 17.9% year-over-year
- Ordinary profit: ¥54.6 billion ($369 million), marking an 11.4% rise
Key Insights
The financial report highlights that the company's Digital division, encompassing its gaming portfolio, noted a rise in sales by 1.3% year-over-year, moving from ¥106 billion ($716 million) to ¥108 billion ($730 million) in the first quarter of 2026. Notably, the division's profit soared by 47.7%, increasing from ¥14.7 billion ($99.3 million) to ¥21.7 billion ($147 million).
The notable growth in the first quarter is partly due to the tremendous 81.2% increase in sales of the Mobile Suit Gundam series, aided by initiatives within the group leading up to its 50th anniversary in 2029. This makes it the highest-grossing series for the company this quarter, followed by One Piece, which experienced a slight decrease of 1.5% year-on-year.
The report also mentions that the mobile game SD Gundam G Generation Eternal, launched on April 16, had a strong start.
Elden Ring Nightreign, introduced on May 30, also posted impressive results this quarter. Although the specific number of units sold wasn't disclosed for its launch quarter, Bandai Namco confirmed that over five million units have been distributed to date.
In summary, the Home Console Game segment sold a total of 10.8 million units, launching 15 new titles, with the number climbing to 33 when localized versions are included.
Newly launched games accounted for 4.62 million of these units, while repeat sales comprised 6.13 million units.
Looking ahead to Q2 2026, Bandai Namco intends to expand its network content by reinforcing the revenue base with main titles, although it anticipates that upfront costs will increase for both console and network content due to the higher volume of new releases.