Square Enix Holdings shares surged 14.94% to ¥3,300 on the Tokyo Stock Exchange on August 12, reaching their highest level since October 2025 after the company reported much stronger-than-expected April-June earnings. First-quarter net profit attributable to parent company shareholders rose 175.7% year-on-year to ¥13.244 billion, far above the ¥7.3 billion average market forecast compiled by QUICK Consensus, while operating profit climbed 88.6% to ¥17.008 billion, also beating expectations by nearly ¥6 billion. Revenue increased 32.3% to ¥78.423 billion and recurring profit jumped 172.4% to ¥18.766 billion, with growth across all reporting segments and support from a foreign-exchange gain. The main driver was Digital Entertainment, particularly HD Games, where strong repeat and catalog sales linked to "Final Fantasy VII Rebirth" and contributions from newer titles including "Dragon Quest Smash Glow" lifted performance. Square Enix kept its full-year operating profit forecast for the fiscal year ending March 2027 at ¥49 billion, down 10.5% year-on-year, but first-quarter operating profit already covers roughly 35% of that target, strengthening market expectations that the company could eventually raise guidance. The rally also reflected investor confidence that the company’s efforts to reduce dependence on single blockbuster releases and build a more stable earnings base are gaining traction. Investors are now focused on the second-half release schedule, mobile game revenue trends, and whether management revises its full-year outlook upward.