Sanrio reported record first-quarter results for the fiscal year ending March 2027, with revenue rising 20.7% year on year to ¥52.04 billion and operating profit increasing 11.1% to ¥22.44 billion. Recurring profit rose 12.0% to ¥22.62 billion and net profit attributable to parent company shareholders climbed 9.3% to ¥15.52 billion. The licensing business remained the main growth driver, with royalty revenue up 23.0% to ¥26.8 billion, or 51.5% of total revenue. Japan led performance, helped by strong store sales and record attendance at Sanrio Puroland, while North America and Asia saw profit decline despite revenue growth because of higher marketing and SG&A expenses. Although the quarter marked a record for April-June, operating profit fell short of analyst expectations of ¥23.2 billion in the QUICK Consensus and ¥23.4 billion in Bloomberg data, and Sanrio shares fell as much as 20% in Tokyo trading on August 12, their steepest intraday drop since May 2014. The company left its full-year forecasts unchanged. Morningstar said the results were broadly in line with its estimates and that the stock, which had risen about 55% since Sanrio's delayed full-year earnings release in June, had reached fair value. Sanrio also said mainland China stores performed well, the Americas business showed signs of recovery despite tariff pressure, and gaming expansion plans include a Nintendo Switch title in October and a mobile game in 2027, though Morningstar does not expect gaming to be a meaningful near-term profit driver.