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.

• Sales and profits fell sharply due to a lack of major new releases and the absence of last year's special factors, such as The Super Mario Bros. Movie and The Legend of Zelda: Tears of the Kingdom.

• Hardware sales totaled 4.72 million units and software sales 70.28 million units, both down significantly year-over-year.

• Digital sales fell 26.5% year-over-year; mobile and IP-related business sales dropped 43.3% due to lower movie-related revenue.

• Overseas sales accounted for 74.7% of total revenue.

Financial highlights

• Operating profit margin dropped 12.0 points year-over-year to 23.2%.

• Gross profit decreased 32.6% to 317.9 billion yen, but gross profit margin improved by 1.5 points to 60.8% due to a higher proportion of digital sales.

• Ordinary profit was 147.1 billion yen, down 61.3% year-over-year, impacted by foreign exchange losses.

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

• Interim dividend reduced to 35 yen per share from 80 yen last year.

Outlook and guidance

• Full-year net sales forecast revised down to 1,280.0 billion yen and operating profit forecast cut to 360.0 billion yen.

• Ordinary profit and net profit forecasts remain 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, and software by 5 million units to 160 million.

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