Nihon Falcom, a Japanese video game publisher known for titles such as Trails in the Sky and Xanadu, announced on October 7, 2026, that it is raising its financial forecasts for the fiscal year ending September 30, 2026. This update comes after strong sales of several key games in its lineup, including Trails in the Sky the 2nd Chapter and Kyoto Xanadu -the Blooming Phantom, which have significantly boosted the company’s financial performance. The revised forecasts, announced by President Kondo Toshihiro and General Director Nakano Takashi, now predict revenue of 4.3 billion yen—up from the original estimate of 3.6 billion yen. This represents an 19.4 percent increase. Operating profit is expected to reach 2.8 billion yen, up from 2.2 billion yen, a 27.2 percent rise, while net profit is projected at 1.9 billion yen, up from 1.5 billion yen, a 26.6 percent increase. These figures also surpass those of the previous fiscal year, which saw revenue of 2.612 billion yen and net profit of 903 million yen. The improved financial outlook is largely due to the success of Trails in the Sky the 2nd Chapter, released globally on September 17, 2026, and Kyoto Xanadu -the Blooming Phantom, launched in Japan and Asia on July 16, 2026. The continued popularity of Trails in the Sky the 1st Chapter, released in September 2025, also plays a role. Nihon Falcom believes these three titles will help the company achieve record financial results for the 2026 fiscal year. This is the second major revision of Nihon Falcom’s annual forecasts in 2026. In May 2026, the company had already predicted a 38.4 percent increase in revenue and a 69.2 percent increase in operating profit compared to earlier estimates. At that time, the company was more cautious due to uncertainty about the sales of Kyoto Xanadu -the Blooming Phantom in Western markets. Now, despite its limited release to Japan and Asia, the game has made a significant contribution to the company’s financial results. Kyoto Xanadu -the Blooming Phantom marks the first new entry in the Xanadu series in nearly a decade and remains a crucial part of Nihon Falcom’s strategy, highlighting the growing importance of Asian markets for the publisher.