adminBandai Namco Q1 results reached record levels overall, but the company’s Digital segment, which includes games, reported lower sales and operating profit. The contrast reflects stronger results in other business areas and fewer game releases than in the same period last year.
Bandai Namco Q1 results: key figures
For the first three months of the fiscal year ending March 31, 2026, Bandai Namco reported growth across its consolidated financial measures:
- Net sales: ¥328.4 billion ($2 billion), up 9.3%.
- Operating profit: ¥69.2 billion ($436.7 million), up 33.3%.
- Ordinary profit: ¥74.4 billion ($469.5 million), up 36.3%.
These figures show that overall performance improved even as the gaming-related segment faced a weaker quarter. When comparing results, it is useful to distinguish company-wide growth from the performance of individual segments.
Toys, hobby products and amusement facilities support growth
The Toys and Hobby segment was a major contributor to the overall increase. Its sales rose 45.9%, while profit increased 25.4%. Bandai Namco also received a refund related to US tariffs, which was another factor reported in its results.
Amusement facilities also contributed: net sales at existing locations in Japan grew 7.6% year on year. This measure relates to existing facilities, rather than indicating growth from newly opened locations. Comparing like-for-like locations can help readers understand changes in ongoing business performance.
Digital segment sales and profit declined
Digital segment net sales fell 15.6% to ¥90.9 billion ($573 million). Operating profit dropped 30.9% to ¥15 billion ($94.5 million). The company linked the declines to having fewer titles released than in the corresponding period a year earlier.
Home console games sold 6.9 million units during the quarter, with two new titles released. In the previous quarter, the company recorded 10.8 million units sold and 15 new titles, including a major release. These figures exclude platform and region-localised versions, so they do not represent every version separately.
Bandai Namco said its core game app titles remained popular. It also stated that it is strengthening development capabilities to build an optimised title portfolio and further reinforce earnings from network content. For readers tracking this segment, title release schedules and unit sales offer useful context alongside the headline profit figures.
Revised half-year outlook and upcoming titles
The company revised its half-year forecast for Digital Contents. Sales are now expected to reach ¥200 billion ($1.2 billion), 10% above the previous forecast but 31.5% below the same period last year. Operating profit is projected at ¥26.5 billion ($167 million), an 11.5% increase on the previous forecast and a 10.8% year-on-year decline.
Upcoming titles listed by the company include Ace Combat 8: Wings of Theve on October 2, 2026, Dragon Ball Xenoverse 3 in 2027, and Gundam Rogue Orbit in 2027.
Bandai Namco has not changed its full-year forecast. It plans to reassess it in light of market conditions, fan needs, major home console titles planned for the third quarter and beyond, and performance during key selling seasons. Overall, Bandai Namco Q1 results combine record company-wide sales with a weaker Digital segment, making future releases and market trends important factors to watch.
