Nintendo Co. (7974) Q2 2025 earnings summary

Executive summary

• Net sales for the first half of FY25 declined 34.3% year-over-year to 523.2–523.3 billion yen, with operating profit down 56.6% to 121.5 billion yen and net profit down 59.9% to 108.6–108.7 billion yen.

• Declines were driven by lower hardware and software sales, absence of major releases, and a high comparison base from the previous year.

• Digital sales fell 26.5% year-over-year but increased as a proportion of total software sales to 56.3%.

• Overseas sales accounted for 74.7% of total revenue.

• Mobile/IP-related business sales dropped 43.3% due to lower movie-related revenue.

Financial highlights

• Gross profit dropped to 317.9 billion yen, with gross margin improving by 1.5 points to 60.8% due to higher digital sales mix and lower OLED hardware share.

• Operating profit margin decreased by 12.0 points to 23.2%; net profit margin fell by 13.3 points to 20.8%.

• Ordinary profit decreased 61.3% to 147.1 billion yen, impacted by foreign exchange losses but offset by interest income.

• EPS for the period was 93.33 yen, compared to 233.03 yen in the prior year.

• Comprehensive income was 86.9 billion yen, down 74.8% year-over-year.

Outlook and guidance

• FY25 net sales forecast revised down 5.2% to 1,280.0 billion yen; operating profit forecast cut 10% to 360.0 billion yen.

• Ordinary profit and net profit forecasts unchanged at 420.0 billion yen and 300.0 billion yen, respectively; annual dividend forecast maintained at 129 yen per share.

• Hardware sales forecast lowered by 1 million units to 12.5 million; software by 5 million units to 160 million.

• New software titles and continued platform support are expected to drive engagement in the second half.

• Assumed exchange rates for FY25 remain at 1 USD = 140 yen, 1 Euro = 155 yen.