Nintendo Co. (7974) Q3 2025 earnings summary

Executive summary

• Net sales for FY25 Q1–Q3 declined 31.4% year-over-year to 956.2 bn yen, with operating profit down 46.7% to 247.5 bn yen and net profit down 41.9% to 237.1 bn yen.

• Hardware sales declined 30.6% and software sales fell 24.4% year-over-year, reflecting a normalization after strong prior-year releases.

• Digital sales dropped 29.0% year-over-year, but digital sales proportion increased to 51.0% of software sales.

• Nintendo Switch 2 is scheduled for release in 2025, with experience events and a Nintendo Direct planned for April.

• The Switch platform maintains over 100 million annual playing users and remains resilient in its eighth year.

Financial highlights

• Operating profit margin fell to 25.9% from 33.3% year-over-year; gross profit margin at 59.1%.

• SG&A expenses rose 1.3% to 317.9 bn yen, with R&D up 13.4% and advertising down 17.8%.

• Foreign exchange gains contributed 6.2 bn yen to non-operating income, down from 34.2 bn yen last year.

• EPS for the nine months was 203.73 yen, compared to 350.48 yen in the prior year.

• Dividend forecast was reduced, with annual dividend expected at 211 yen per share.

Outlook and guidance

• FY25 full-year net sales forecast revised down 7% to 1,190.0 bn yen; operating profit forecast cut 22.2% to 280.0 bn yen.

• Profit attributable to owners of parent forecast at 270.0 bn yen, down 45.0% year-over-year.

• Hardware sales forecast for Nintendo Switch lowered 12% to 11.00 million units; software forecast down 6.3% to 150.00 million units.

• Assumed USD/JPY exchange rate revised to 150 yen per USD.

• New titles and third-party releases are expected to support platform engagement.