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Nintendo Co. (7974) investor relations material
Nintendo Co. Q2 2027 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
FY27 Q1-Q2 net sales were ¥966.0bn, down 12.1% YoY; operating profit rose 49.1% to ¥216.5bn and profit attributable to owners rose 11.0% to ¥220.9bn.
Dedicated platform sales declined, while software, digital sales and IP-related income grew.
Financial highlights
Gross profit was ¥486.5bn, up from ¥398.5bn; ordinary profit rose 27.4% to ¥300.7bn.
Net profit attributable to owners was ¥220.9bn; EPS was ¥191.63 versus ¥170.87 a year earlier.
A ~$300m U.S. IEEPA tariff refund was recorded as a Q1 reduction in cost of sales; tariffs had primarily been borne rather than passed on through prices.
Outlook and guidance
FY27 forecast unchanged: net sales ¥2,050bn, operating profit ¥370bn, ordinary profit ¥430bn and attributable profit ¥310bn; EPS forecast is ¥268.90.
FY27 unit forecasts: Nintendo Switch 2 hardware 16.50m and software 60.00m; Nintendo Switch hardware 2.00m and software 105.00m.
Forecast factors in ¥100bn of cost-of-sales impact from component-price increases, particularly memory, and tariffs; assumptions include ¥150 per U.S. dollar and ¥175 per euro.
- Operating profit surged 150.5% year-over-year on strong software and digital sales.7974
Q1 2027 - Net sales nearly doubled on Switch 2's launch, but margins fell and next year's sales are set to decline.7974
Q4 2026 - Nintendo Switch 2 launch fueled record sales and profit growth, with raised full-year outlook.7974
Q3 2026 - Switch 2 launch drove 110% sales growth and higher profits, prompting an upward forecast revision.7974
Q2 2026 - Switch 2 launch drove 132% sales growth and record profits, with strong hardware demand.7974
Q1 2026 - New films, Switch 2 supply, and R&D expansion drive innovation and engagement.7974
AGM 2025 Q&A - Profits and sales fell sharply, leading to lower full-year forecasts despite ongoing platform support.7974
Q2 2025 - Sales and profits fell sharply year-over-year, but Switch engagement and guidance remain strong.7974
Q1 2025 - A major rebound is forecast for FY26 with Switch 2 and new software launches.7974
Q4 2025
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Frequently asked questions
The generational favorite
Nintendo is for sure one of those brand names you are familiar with and probably one of the most dominant gaming companies of the last few decades. Their business operations are, however, less well known, possibly because they count their profits in Japanese yen rather than US dollars.
The Nintendo devices
The Japan-based company has sold hundreds of millions of gaming devices and billions of games throughout its history, such as the Game Boy, the Super Nintendo Entertainment System, the Nintendo DS, the Wii, and the Switch. Some major franchises include Mario (their mascot and most recognized character), Donkey Kong, The Legend of Zelda, Pokémon, Kirby, and Super Smash Bros.
In the coming years, you should keep an eye on a couple of key areas in Nintendo's development:
Their next-generation gaming device. Their latest device, The Switch, is getting old and needs a true upgrade. Nintendo will likely release a new device in the next year or two, given its historical upgrade cycle. This up-to-date device is imperative for Nintendo’s future success, as it is the engine that keeps people buying their games.
Subscription services. Nintendo recently built an online subscription service similar to Xbox and Playstation to get more consistent earnings. Their service Nintendo Switch Online (NSO), can be very lucrative, with a more significant amount of recurring revenue and high-profit margins.
Expanding into non-gaming entertainment. Nintendo has decided to become more Disney-like, expanding their hugely successful franchises into theme parks and video entertainment.
Gaming—a rapidly changing market
Nintendo is really transforming their business operations. The company might be a lot different in the future, with multiple theme parks, a growing library of movies, subscription services, and an eventual new hardware device.
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