Nintendo Co. (7974) investor relations material

Executive summary

• Net sales nearly doubled year-over-year for Q1–Q3 FY26, reaching ¥1,905.8 billion, driven by the launch of Nintendo Switch 2 and strong software performance.

• Operating profit increased 21.3% year-over-year to ¥300.4 billion, and net profit rose 51.3% to ¥358.9 billion.

• Nintendo Switch 2 became the fastest-selling hardware in company history, reaching 15 million units sold-through by December 2025 and 17.37 million units sold in Q1–Q3.

• The launch of Nintendo Switch 2 in June 2025 drove record hardware and software sales through the holiday season.

Financial highlights

• Net sales: ¥1,905.8bn (+99.3% YoY); Operating profit: ¥300.3bn (+21.3% YoY); Net profit: ¥358.8bn (+51.3% YoY).

• Ordinary profit totaled ¥455.8bn (+39.4% YoY), including ¥64.8bn from equity method entities and ¥47.8bn in FX gains.

• Gross profit: ¥712.4bn (+26.0% YoY); Gross margin declined to 37.4% from 59.1%.

• Digital sales rose 14.7% YoY to ¥282.0bn, accounting for 50.4% of software sales.

• SG&A expenses increased 29.6% YoY, with notable rises in R&D (+21.8%) and advertising (+66.2%).

Outlook and guidance

• FY26 full-year forecast unchanged: Net sales ¥2,250bn (+93.1%), operating profit ¥370bn (+30.9%), net profit ¥350bn (+25.5%).

• Dividend forecast raised to ¥181 per share.

• Hardware sales forecast: Nintendo Switch 2 at 19m units, Nintendo Switch at 4m units.

• Software sales forecast: Nintendo Switch 2 at 48m units, Nintendo Switch at 125m units.

• Major software releases planned, including Mario Tennis Fever and Pokémon Pokopia.