Nintendo Co. (7974) Q1 2026 earnings summary

Executive summary

• Net sales surged 132.1% year-over-year to 572.3 bn yen, driven by the Nintendo Switch 2 launch and strong software sales.

• Operating profit rose 4.4% to 56.9 bn yen; net profit increased 18.6% to 96.0 bn yen, including a 32.3 bn yen gain on sale of investment securities.

• Nintendo Switch 2 achieved record-breaking global sell-through of 3.5 million units in four days and 5.82 million units in the quarter.

• Mario Kart World sold 5.63 million units at launch; legacy software titles also performed strongly.

• Gross profit margin declined due to a higher proportion of hardware sales with lower margins.

Financial highlights

• Operating profit margin dropped 12.2 points to 9.9% year-over-year.

• Ordinary profit fell 15.6% to 95.8 bn yen, mainly due to lower foreign exchange gains.

• Digital sales declined 13.5% year-over-year to 69.8 bn yen, representing 59.3% of total software sales.

• Hardware sales outside Japan accounted for 79.5% of total sales.

• Profit per share rose to 82.48 yen from 69.53 yen year-over-year.

Outlook and guidance

• Full-year net sales forecast remains at 1,900.0 bn yen, with operating profit projected at 320.0 bn yen.

• Dividend forecast raised to 129 yen per share.

• U.S. tariffs are assumed to persist, but no significant impact on earnings forecast is expected.

• Focus on expanding Nintendo Switch 2 user base and maximizing software sales with new releases.

• Nintendo Switch 2 hardware sales forecast at 15 million units and software at 45 million units for FY26.