SQUARE ENIX HD (9684) Expect major new multi-platform title releases to resume from FY2027

Research evidence excerpt

SQUARE ENIX HD (9684) Expect major new multi-platform title releases to resume from FY2027

J P M O R G A N Asia Pacific Equity Research

09 June 2026

SQUARE ENIX HD (9684) Underweight

9684.T, 9684 JP

Expect major new multi-platform title releases to Price (09 Jun 26):¥2,472

resume from FY2027 ▼Price Target (Dec-26):¥2,100 Prior (Dec-26):¥2,200

Square Enix Holdings is working to narrow down titles, reduce development costs

for small and medium-sized titles, and expand repeat sales in the high-definition Japan Equity Research

(HD) game business. We raise our operating profit forecasts for FY2026 and Games, Internet, Services

beyond. On the other hand, the participation of a certain investor and other factors AC Junko Yamamura

give the impression that the shares are overvalued. We maintain our Underweight (81-3) 6736-8644

rating. We trim our December 2026 price target from ¥2,200 to ¥2,100, mainly due junko.yamamura@jpmorgan.com

to a decline in the industry average P/E. Ryo Nakagawa

(81-3) 6736-8643

• Forecasting solid profit growth: We raise our operating profit forecasts for ryo.nakagawa@jpmorgan.com

the HD game business for FY2026 onward as we increase our estimate for JPMorgan Securities Japan Co., Ltd.

repeat sales and reflect the latest pipeline. We lower our operating profit

forecasts for the massively multiplayer online (MMO) and smart devices

Key Changes (FYE Mar) businesses, and for the rights and properties and amusement businesses, we

Prev Cur Δ

reflect cost increases due to the situation in the Middle East in our earnings Adj. EPS - 27E (¥) 97.42 102.60 5.3%

forecasts. We forecast annual medium-term operating profit growth of 9.4% in

FY2026-28, slightly above the industry average medium-term operating profit Style Exposure