Bandai Namco achieves record Q1 sales, but Digital segment operating profit drops 30.9%
Bandai Namco reported record first-quarter financial results for the period ending March 31, 2026, with consolidated net sales reaching ¥328.4 billion ($2 billion), representing a 9.3% increase year-over-year. Operating profit surged 33.3% to ¥69.2 billion ($436.7 million), while ordinary profit climbed 36.3% to ¥74.4 billion ($469.5 million).
However, the company’s performance masked a significant weakness in its Digital segment, which encompasses gaming operations. The division saw operating profit plummet to ¥15 billion, representing a substantial decline from the previous year. Net sales in the Digital segment dropped 15.6% to ¥90.9 billion, a notable contraction attributable to fewer title releases during the quarter compared to the same period the previous year.
The shortfall in gaming revenue was offset by strong performance from Bandai Namco’s Toys and Hobby segment, which drove the overall company’s record-breaking results. This diversification across multiple business segments helped the publisher maintain profitability despite the gaming division’s challenging quarter.