Nintendo Co. (7974) Q2 2026 earnings summary

Executive summary

• Net sales for the first half of FY26 surged 110.1% year-over-year to 1,099.6 billion yen, driven by the launch of Nintendo Switch 2 and strong hardware and software sales.

• Operating profit rose 19.5% to 145.2 billion yen, while ordinary profit surged 60.5% to 236.0 billion yen.

• Net profit attributable to owners of parent jumped 83.1% to 198.9 billion yen, aided by foreign exchange gains and a 32.3 billion yen gain on sale of investment securities.

• Comprehensive income reached 191.8 billion yen, up 120.6% year-over-year.

• The company revised its full-year forecast upward, reflecting robust first-half performance and increased sales expectations for Nintendo Switch 2.

Financial highlights

• Nintendo Switch 2 hardware sold 10.36 million units and software 20.62 million units since June launch.

• Net sales increased 110.1% year-over-year to 1,099.6 billion yen; operating profit up 19.5% to 145.2 billion yen.

• Gross profit increased to 398.5 billion yen, but gross profit margin declined by 24.6 points to 36.2% due to higher hardware sales mix and lower margin on Switch 2.

• SG&A expenses rose 29.0% to 253.2 billion yen, mainly from higher advertising and R&D costs.

• Interim dividend increased by 7 yen to 42 yen per share.

Outlook and guidance

• Full-year net sales forecast raised to 2,250.0 billion yen, operating profit to 370.0 billion yen, ordinary profit to 460.0 billion yen, and net profit to 350.0 billion yen.

• Annual dividend forecast increased by 52 yen to 181 yen per share.

• Nintendo Switch 2 hardware sales forecast raised to 19 million units, software to 48 million units for FY26.

• Nintendo Switch hardware forecast lowered to 4 million units, software forecast raised to 125 million units.

• New major software releases planned for Nintendo Switch 2 and legacy Switch platforms in the second half.