Capcom's Q1 ordinary profit surges by 81% to $252.5 million, driven by Pragmata and the Resident Evil franchise.

Capcom has unveiled its financial performance for the first quarter, showcasing remarkable increases in net and regular profit, primarily due to the successful sales of Pragmata and its Resident Evil series.

The corporation affirmed that it is "on track" to meet its yearly targets of reaching ¥210 billion ($1.3 billion) in net sales and ¥58 billion ($367.5 million) in net income.

Financial Overview

In the quarter ending June 30, 2026:

• Net sales: ¥70.4 billion ($429.5 million), a 54.7% rise compared to the previous year
• Operating profit: ¥41 billion ($250.1 million), an increase of 66.9% from the same period last year
• Ordinary profit: ¥41.4 billion ($252.5 million), growing by 81.1% year-on-year
• Net income: ¥29.1 billion ($177.5 million), up by 69.2% compared to the prior year

Key Insights

The Digital Earnings segment was notably influential in the Q1 results, achieving net sales of ¥54.6 billion ($333 million), a year-on-year rise of 83%, with operating profit climbing 87.5% to ¥37.5 billion ($228.7 million).

Sales volume soared to 23.81 million units, outpacing last year’s 14.16 million units in the same timeframe. Newly launched Pragmata, introduced in April, sold over 2.5 million units globally. It crossed 1 million sales in just two days and doubled that within 16 days.

Regarding prior releases, strategies like price adjustments, animated partnerships, and multi-platform launches were instrumental in expanding the user base, thus enhancing sales during this quarter.

Resident Evil Requiem was highlighted for selling over 8 million units. Capcom also cited robust sales from other series titles, with Resident Evil 4 and Resident Evil 2 topping charts.

Devil May Cry 5 reached total sales of 14 million units, while Street Fighter 6 saw sales soar to 60 million units, thanks in part to increased synergy with esports initiatives.

The total transacted units for back catalog titles reached 21.26 million, up from 13.36 million units from the previous quarter.

Contributions from Capcom’s Arcade Operations and Amusement Equipment sectors also bolstered Q1 earnings, via "efficient operations of current stores and new store formats" and sales of a novel smart pachinko device.

Looking forward, the forecast for the fiscal year concluding on March 31, 2027, aligns with the projections stated in May 2026.