Toei Company, Ltd.
Japanese studio behind Kamen Rider, Super Sentai and Power Rangers, plus cinemas and a theme park.
On the record
Checkpoint: FY2027 earnings check against ¥189B sales and ¥28.7B operating profit guidance
The call
Toei's profit is climbing on owned franchises and real estate even as its movie slate underperforms and rivals circle its distribution.
Toei makes and owns famous superhero shows like Kamen Rider and Super Sentai, plus runs movie theaters and a film studio in Kyoto. It is hard to replace because it owns the actual franchise characters and has long-standing relationships with TV networks like TV Asahi, which competitors cannot simply copy. AI can make animation cheaper by automating backgrounds and drawing work, but it cannot create new franchises or buy the rights that Toei already owns. The one thing to watch is whether the Super Sentai franchise stays popular with young people in the coming years, and whether bigger rivals like Sony and Toho can squeeze Toei out of its distribution channels by working together.
Why
01
AI pressure: Generative AI animation tools (in-betweening, coloring, backgrounds). AI cuts animation labor costs and Toei is adopting it in-house, but it can't create franchise IP or TV Asahi ties. Could AI do the core job? Unlikely.
02
Bigger players: Sony/Kadokawa Animec JV. Launched March 2026 as theatrical distribution; if it expands into IP co-financing, anime could route around Toei. Could a giant copy it? No, they are blocked.
03
What protects it. Owned franchises (Kamen Rider, Super Sentai, Power Rangers licensing) plus TV Asahi broadcaster ties and 230 owned cinema screens.
What would change this call
Toei confirms a named successor franchise to Super Sentai after Gozyuger within the next year. Shows whether the decades-old tokusatsu franchise pipeline is intact or genuinely winding down.
Sony/Kadokawa Animec JV announces IP co-financing or exclusive windowing deals beyond theatrical distribution. Would show rivals building a bloc that routes anime titles around Toei's distribution.
Toei's FY2027 operating profit (due mid-2027) versus its ¥28.7B guidance. Would confirm whether the 'lack of hit titles' pattern is hitting profit for a second straight year.
Sony/Kadokawa Animec JV announces IP co-financing or exclusive windowing deals beyond theatrical distribution. Would show rivals building a bloc that routes anime titles around Toei's distribution.
Toei's FY2027 operating profit (due mid-2027) versus its ¥28.7B guidance. Would confirm whether the 'lack of hit titles' pattern is hitting profit for a second straight year.
Key numbers
- FY2026 profit ¥37.376B, up 28% YoY
- FY2025 revenue ¥179.92B, up 5.01% YoY
- FY2027 guidance: ¥189B sales, ¥28.7B op profit
Named risks
- Super Sentai franchise wind-down after Gozyuger without confirmed successor landing.
- Animec JV expanding from distribution into IP co-financing, rerouting anime around Toei.
- Movie distribution segment revenue decline in FY2026 from lack of hit titles, could recur.
- AI production backlash affecting labor relations and creator goodwill.
- Untested new ventures (Toei Games, Uzumasa Phase 2/3) carry execution and reception risk.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| Toho Co., Ltd. | losing to | Toho reportedly ~2x Toei's revenue and dominant in domestic theatrical distribution as of 2026 |
| Sony/Kadokawa (Animec JV) | contesting | Animec JV formed March 2, 2026 to challenge Toho, could reroute anime distribution around Toei |
| Shochiku Co., Ltd. | gaining on | Toei's ¥179.92B FY2025 sales exceed Shochiku's ~¥99.3B, per third-party financial data |
| Kadokawa Corporation | contesting | Sony took ~10% stake in Kadokawa Jan 2025, forming a distribution bloc with Animec March 2026 |
Questions people ask
- Is Toei Company profitable in 2026?
- Yes. For FY2026 (ended March 31, 2026), Toei Company reported profit attributable to owners of ¥37.376 billion, up 28% from ¥29.189 billion the prior year, on consolidated net sales that grew as well, per its May 15, 2026 financial results filing.
- Could AI replace Toei Animation's workforce?
- AI is being deployed for lower-value tasks like backgrounds, coloring and in-betweening, a 2021 Preferred Networks pilot cut background-art time to about one-sixth, but as of May 2025 Toei confirmed no released anime had yet used AI in production, and owned franchise IP remains AI-resistant.
- Who is Toei Company's biggest competitor?
- Toho Co., Ltd. is Toei's dominant rival in Japanese theatrical distribution with far larger revenue (~¥360B vendor-cited estimate versus Toei's ¥179.92B FY2025 sales); Sony and Kadokawa also formed a new distribution JV called Animec on March 2, 2026 to challenge Toho.
- Is Toei Company a safe employer to join right now?
- Toei looks structurally stable: TSE Prime listed, ¥37.376 billion profit for FY2026, 230 cinema screens, and decades of owned IP like Kamen Rider and Super Sentai, though its movie distribution segment saw revenue decline in FY2026 due to a lack of hit titles.
- Who owns Toei Company?
- Toei Company (TYO:9605) is an independently listed public company on the Tokyo Stock Exchange Prime Market with no controlling parent; Japan's Government Pension Investment Fund held 2.72% as of March 31, 2023, and Toei itself is majority shareholder (34-41%) of the separately listed Toei Animation (TYO:4816).
- Is Toei Company laying off staff or shrinking?
- No signs of shrinkage: consolidated employee count rose to 1,764 as of March 31, 2025, up 60.66% year over year from 1,098, largely reflecting the July 2025 consolidation of cinema chain T-JOY as a wholly owned subsidiary.
Timeline
- 2026-05-15FY2026 results: ¥37.376B profit (+28% YoY); FY2027 guidance ¥189B sales, ¥28.7B operating profit
- 2026-04-21Toei Games publishing label launches with three original indie titles on Steam
- 2026-03-28Uzumasa Kyoto Village Phase 1 reopens as adults-oriented nighttime attraction
- 2026-03-02Sony and Kadokawa announce joint theatrical distribution venture Animec
- 2025-07-31T-JOY made wholly owned subsidiary; Toei exits direct cinema operation
- 2025-07-27Headquarters relocated from Ginza's Toei Kaikan to Kyobashi Edogrand
- 2025-05-20Toei Animation responds to backlash over AI production plans
- 2025-04-30Toei Animation invests ¥5 billion in Preferred Networks for AI production JV
- 2021-01-01Toei Animation pilots Preferred Networks 'Scenify' AI tool, cutting background time to 1/6
Revision history
24 July 2026
First assessed. Hard to displace. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- Summary of Consolidated Financial Results for FY Ended March 31, 2026 (2026-05-15)
- Toei Company (TYO) Revenue (2025-12-30)
- FY2026 Consolidated Financial Results Presentation (2026-05-15)
- GuruFocus (2026-07-24)
- Toei Company (2026-07-17)
- 9605) Number of Employees (2026-06-28)
- Toei Company launches publishing label Toei Games (2026-04-21)
- Toei Uzumasa Eigamura rebrands (2026-01-09)
- Toei Animation (TYO) Revenue (2026-07-08)
- TOEI ANIMATION CO., LTD.
- Toei Animation To Apply AI to 'Various Processes of Animation Production' (2025-05-16)
- Toei Invests in AI Tech Co. for Animation Production Venture (2025-09-04)