Capcom Co., Ltd.

Capcom Co Ltd reported a record-breaking first quarter for the fiscal year ending March 2026, with net sales rising 53.7% year-over-year to 45.52 billion yen and operating profit climbing 90.8% to 24.597 billion yen. Ordinary profit rose 69.7% to 22.883 billion yen and net income attributable to owners of the parent grew 72.8% to 17.238 billion yen, marking the company's 13th consecutive fiscal year of operating profit growth and 11th straight year of record-high operating profit. The Digital Contents segment drove the quarter with net sales of 29.847 billion yen, up 84% year-over-year, and segment profit of 20.057 billion yen, up 56%, as unit sales of core titles reached 14.16 million units, the highest ever for a first quarter and up from 9.53 million units a year earlier. The Amusement Equipment segment posted net sales of 7.812 billion yen, up 56% year-over-year, with operating income of 4.91 billion yen, while the Arcade Operations segment expanded to 56 stores with three new openings. Capcom repurchased approximately 8 million shares for about 31.6 billion yen during the quarter and kept its annual dividend forecast at 50 yen per share, and President Haruhiro Tsujimoto confirmed no change to the full-year forecast of 190 billion yen in net sales and 65 billion yen in operating income.

The Chinese government is looking to cultivate anime, games and related products into a new pillar of service exports. The aim is to strengthen soft power that is less vulnerable to trade friction, improve the country's image, and thereby spread domestic brands. At the China International Fair for Trade in Services, a service-industry exhibition held by the Ministry of Commerce and the city of Beijing through the 13th, a new booth was set up to support Chinese companies expanding overseas, and the government has positioned games, anime and dramas as the "new three" of cultural export. Chinese toy giant Pop Mart displayed collaboration products featuring its own Skullpanda and Sanrio's My Melody, and has previously teamed up with Myaku-Myaku, the official mascot of the Osaka Expo, and the Japanese singer XG. Fellow toymaker 52TOYS, under an official license from Capcom, turned the protagonist of the fighting game Street Fighter 6 into a figure. The economic impact generated by China's cultural and related industries reaches 6 trillion yuan a year, approaching the world's largest, but there are still few characters loved around the world for as long as Mickey Mouse or Hello Kitty.

Capcom is showing strong performance. The company announced on the 7th that the latest installment in the series, "Onimusha: Way of the Sword," has surpassed 1 million copies sold worldwide on its launch day. The game is a sword-fighting action game set in early Edo-period Kyoto, featuring Miyamoto Musashi as the protagonist. With this sales momentum, the cumulative sales of the "Onimusha" series have reached 10 million copies.

Nihon Keizai Shimbun announced on the 4th that it will remove Konica Minolta, Archion, and Kanadevia from the Nikkei Stock Average's constituent stocks, and instead add JX Metals, Capcom, and Kokusai Electric. The change, which takes into account market liquidity and other factors, will be implemented on October 1st.

On the Tokyo stock market on August 14, Nexon hit limit-up proportional allocation after announcing a special dividend of 415 yen per share, while Nintendo also rebounded sharply on reports of its Nintendo Switch 2 expansion into Indonesia. Nexon announced the previous day that it would pay a special dividend of 415 yen per share to shareholders of record as of September 30, 2026, which was taken as a positive surprise by the market. Nintendo was boosted by reports that it would launch the Nintendo Switch 2 and Nintendo Switch in Indonesia in December 2026. Tokai Tokyo Securities maintained its Outperform rating on Capcom and raised its target price from 4,780 yen to 5,090 yen, and Capcom rebounded for the first time in three days, with major home video game stocks generally bought. Meanwhile, Mynet plunged after posting an operating loss of 132 million yen in its second-quarter results, falling into the red, and Sun Electronics also fell sharply, at one point being sold down below the 8,000 yen level.

On the Tokyo stock market on July 29, 66 out of 96 game and entertainment-related stocks rose. Capcom surged to its daily limit up after reporting a 54% increase in revenue and a 66% jump in operating profit for the first quarter, achieving substantial top- and bottom-line growth. Tsuburaya Fields Holdings hit its daily limit up for a second straight day, driven by upward revisions to its full-year consolidated earnings forecast and medium-term management plan. Alphapolis rose for a third consecutive day after announcing the launch of English-translated print editions of its official manga in North America and other regions. On the other hand, Megachips fell for a fifth straight day, as Mizuho Securities maintained a neutral rating on the stock despite raising its target price.

Konami Group rose for a fourth consecutive day, reclaiming the 22,000 yen level for the first time since January. With major home video game stocks such as Koei Tecmo Holdings and Capcom reporting sharp revenue and profit growth in their first-quarter results, attention is growing on Konami Group's own first-quarter earnings, which are scheduled for release tomorrow, July 30.

Among notable morning movers, Microwave Chemical announced it has developed microwave technology and equipment usable in open spaces and filed a patent application, sending the stock sharply higher on a rebound. Fruta Fruta partnered with Sumitani to launch full-scale cross-border e-commerce in China and opened a Tmall store. Qualips received approval for the insurance reimbursement price of its iPS cell-derived cardiomyocyte sheet and revised its operating loss forecast for the fiscal year ending March 2027 upward from 1.43 billion yen to 1.03 billion yen. Keyence reported first-quarter operating profit of 187.1 billion yen, up 44.7 percent year-on-year, beating consensus by about 30 billion yen, and the stock surged. Capcom posted first-quarter operating profit of 41.1 billion yen, a 66.9 percent increase from a year earlier, exceeding market expectations by roughly 12 billion yen, and extended sharp gains. Shimano saw a rapid recovery with April-to-June operating profit of 16.8 billion yen, up 40.6 percent year-on-year, and raised its full-year ordinary profit forecast from 53.3 billion yen to 56 billion yen. Komeri reported first-quarter operating profit of 10.9 billion yen, an 8.8 percent rise year-on-year, showing steady progress, and also announced a share buyback. Prestige International posted first-quarter operating profit of 2.27 billion yen, up 17.4 percent year-on-year, maintaining solid momentum, and its share buyback and commemorative shareholder benefits were also well received.

Capcom has announced its first-quarter results for the fiscal year ending March 2027, posting revenue of 70.41 billion yen, up 54.7 percent year-on-year, and operating profit of 41.054 billion yen, a 66.9 percent increase, achieving significant top- and bottom-line growth. The completely new IP Pragmata sold over 2.5 million units worldwide, while repeat titles sold 21.26 million units, surpassing the 13.36 million units in the same period last year, boosting performance. By segment, the digital content business saw revenue soar to 54.648 billion yen, up 83.0 percent, and operating profit jump to 37.597 billion yen, an 87.5 percent increase. Full-year forecasts remain unchanged at revenue of 210 billion yen and operating profit of 83 billion yen.