Toei Animation (4816) Q4 2026 earnings summary

Executive summary

• Net sales for FY2026.3 were ¥93,669 million, down 7.1% year-over-year, with operating profit at ¥31,018 million, down 4.4%, while ordinary and net profit reached record levels year-over-year.

• Profit was maintained at similar levels to the previous year, supported by strong overseas merchandising rights sales, despite declines in domestic streaming and gaming rights.

• Comprehensive income for the year was ¥26,882 million, down 3.4% year-over-year.

• Profit margin improved due to strong overseas merchandising rights and lower production costs compared to the prior year.

Financial highlights

• Gross profit increased 1.6% year-over-year to ¥49,203 million.

• Net profit rose 6.1% year-over-year to ¥25,070 million.

• SG&A expenses increased 13.7% year-over-year, reflecting higher labor and advertising costs.

• Basic earnings per share rose to ¥122.67 from ¥115.52 year-over-year.

• Cash and cash equivalents at period end increased to ¥76,406 million from ¥66,782 million.

Outlook and guidance

• FY2027.3 net sales forecast: ¥100,000 million (+6.8% year-over-year); operating income expected to decline 19.4% to ¥25,000 million due to strategic investments.

• Ordinary profit to fall 23.5% to ¥25,600 million.

• Net income projected to decrease 27.8% to ¥18,100 million; EPS forecast at ¥88.56.

• Strategic investments of about ¥15 billion planned, including new studio in Vietnam and regional expansion.

• Dividend forecast maintained at ¥44 per share, with a payout ratio of 35.9%.