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Nintendo's Quarterly Profit Jumps 53.5%; Sales Down 9.5% on Lower Switch Sales

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Nintendo's Quarterly Profit Jumps 53.5%; Sales Down 9.5% on Lower Switch Sales

Nintendo (TYO:7974) reported a 53.5% year-over-year surge in attributable profit for the fiscal first quarter of the year as a US tariff refund and higher software sales offset a sharp drop in demand for its hardware products, including its consoles.

Profit attributable to owners of the parent rose to 147.4 billion yen from 96 billion yen a year earlier, the Japanese game maker said Thursday.

Earnings per share in the quarter ended June 30 rose to 127.88 yen from 82.48 yen.

Net sales fell 9.5% to 517.8 billion yen from 572.4 billion yen, which Nintendo attributed primarily to a decrease in unit sales of hardware.

Unit sales of Switch 2, which came out in June 2025, plummeted 34.4% year over year to 3.8 million units, while sales of the original Switch console plunged 31.8% to 660,000 units.

"Although Nintendo Switch 2 sales volume declined compared to the same quarter when it launched last fiscal year, many consumers continued to adopt the system, encouraged by the release of new titles and other factors," Nintendo said.

Switch 2 software sales increased 9.2% year over year to 9.5 million units, while Switch software sales jumped 38.6% to 33.8 million units. These were boosted by titles like "Tomodachi Life: Living the Dream," which sold 7.94 million units since its April launch.

Despite the overall revenue decline, operating profit surged 150.5% to 142.6 billion yen on strong software sales, which Nintendo said accounted for a larger portion of overall sales. It also cited the refund of International Emergency Economic Powers Act (IEEPA) tariffs in the US, which were recorded as cost of sales in prior periods.

Nintendo left its forecast for the fiscal year ending March 31, 2027 unchanged, with attributable profit predicted to tumble 26.9% to 310 billion yen, or 268.90 yen per share, and net sales forecast to slide 11.4% to 2.05 trillion yen.

It also reaffirmed its full-year dividend forecast at 162 yen per share.

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