Full Breakdown
Nihon Falcom Reports Record H1 FY2026 Growth Driven by Global Release of “Trails in the Sky the 1st”
5/13/2026, 8:04:04 PM
H1 FY2026 Financial Highlights
Nihon Falcom disclosed consolidated results for the half-year ending September 2026. Revenue reached 1.535 billion JPY, a 153.9 % year-on-year increase. Operating profit rose to 969 million JPY, reported as a 1216.4 % (or 1227.4 %) gain. Net income was 689 million JPY. The licensing division’s overseas sales grew 194.8 % YoY.
Licensing Division Success and “Trails in the Sky the 1st” Remake
The licensing division, which handles international releases, accounted for most of the growth. The 3-D remake of the first entry in the Trails series launched worldwide on 17 September 2025 and became Falcom’s best-performing Steam title. Critical scores include 87 on Metacritic, 90 on OpenCritic, and a 97 % “Overwhelmingly Positive” rating on Steam. The Trails series surpassed 9 million cumulative units, adding over 1.5 million units in the past year.
Revised Fiscal Outlook and Upcoming Releases
Based on the strong first-half performance, Falcom raised its full-year forecasts. Projected revenue is now 3.6 billion JPY, operating profit 2.2 billion JPY, and net income 1.5 billion JPY. The company also announced preparation of seven new titles, including a July 16 release of “Tokyo Xanadu eX+” and a September 17 launch of “Trails in the Sky the 2nd” across PC, PlayStation 5, and Nintendo Switch. (One source refers to the July title as “Kyoto Xanadu,” creating a naming discrepancy.)
Key Metrics
- Revenue (H1 FY2026): 1.535 bn JPY (+153.9 % YoY)
- Operating profit (H1 FY2026): 969 m JPY (+1216.4 %/1227.4 % YoY)
- Net income (H1 FY2026): 689 m JPY
- Licensing-division sales growth: +194.8 % YoY
- Cumulative Trails series sales: >9 million units
Official Statements
Falcom announced a significant upward revision of its full-year earnings forecast, raising the revenue target to 3.6 billion JPY, operating profit target to 2.2 billion JPY, and net income target to 1.5 billion JPY. The company also confirmed preparation of seven new titles, including the upcoming releases.
Criticism & Opposition
The provided sources contain no reported criticism or opposition to Falcom’s financial results or strategic plans.
Conflicting Reports & Gaps
Two inconsistencies appear across the sources. First, operating-profit growth is cited as 1227.4 % in one report and 1216.4 % in another. Second, the July title is named “Tokyo Xanadu eX+” in two sources but “Kyoto Xanadu” in one. Additionally, Falcom did not disclose individual sales figures for “Trails in the Sky the 1st,” leaving its precise revenue contribution unclear.
Verbatim Quotes
- “Our player base was shrinking, and the development team needed a breather.” — Trails producer, interview cited by Automaton Media
- “It continues to receive acclaim, currently holding a 87 on Metacritic, a 90 on OpenCritic, and an 'Overwhelmingly Positive' (97%) rating on Steam.” (97 % rating) — Steam user rating for “Trails in the Sky the 1st.”
Outlook
Falcom’s revised forecasts indicate continued reliance on global releases of legacy titles and new IPs. The July and September launches will test whether the licensing-division momentum can sustain projected revenue and profit growth through the end of FY2026.
