Koei Tecmo predicts 50% higher profit for FY2026 than originally forecast, due to strong game sales and investments

Koei Tecmo has greatly revised its earnings forecast for the financial year ending March 2026.

The company made its initial financial forecast at the end of April 2025, predicting that it would have an operating profit of ¥31 billion ($194.5 million) and an ordinary profit of ¥27 billion ($169 million).

Instead, it now forecasts that its operating profit will be ¥36,000 ($225.9 million) – a 16% increase on its original forecast – and an ordinary profit of ¥55.5 billion ($348 million), a massive 50% increase on its original forecast.

In a notice to shareholders, Koei Tecmo said the reasons for the revision were “due to the new titles launched in the fourth quarter and other titles exceeding initial plans”.

In the fourth quarter Koei Tecmo released Nioh 3 and Fatal Frame: Crimson Butterfly Remake. It was also the co-creator of Switch 2 exclusive Pokémon Pokopia, which sold 2.2 million units worldwide in its first 4 days of release.

It also noted that its revised forecast was also down to “significant gains in non-operating income and expenses resulting from active market management” – the company frequently makes sizeable profits from its stock investments.

Pokémon Pokopia was co-developed by Game Freak and Omega Force, the Koei Tecmo division mainly responsible for the Dynasty Warriors titles, but also the Dragon Quest Builders games which Pokopia takes some inspiration from.

VGC’s Pokémon Pokopia review calls it “Pokémon’s best spin-off”, noting that the need to grind late in the game “can’t dull the shine” of the overall experience.

“Pokémon Pokopia is an excellent life simulation game that takes the best bits from the champions of the genre and evolves into something that Pokémon fans and cozy game fans will love,” we wrote. “Late-game grinding doesn’t dull an adventure that’s as full of discovery at 100 hours as it was at one.”