Nintendo Co. (7974) Q4 2025 earnings summary

Executive summary

• FY25 net sales declined 30.3% year-over-year to 1,164.9 bn yen, with operating profit down 46.6% to 282.5 bn yen and net profit down 43.2% to 278.8 bn yen.

• Hardware sales declined 31.2% and software sales fell 22.2% year-over-year, reflecting the Switch platform's maturity.

• Digital sales dropped 26.5%, but digital share of software sales rose to 53.5%.

• Nintendo Switch 2 launches June 5, 2025, with a robust first-party and third-party software lineup.

• Mobile/IP-related business revenue decreased 27.0% year-over-year.

Financial highlights

• Operating profit margin dropped to 24.3% from 31.6% year-over-year.

• Gross profit fell 25.6% to 710.1 bn yen, but gross margin improved by 3.9 points to 61.0%.

• Cash and cash equivalents at year-end rose to 1,414.1 bn yen, up 560.7 bn yen from the prior year.

• Net assets increased to 2,725.4 bn yen, with a capital adequacy ratio of 80.2%.

• Dividend per share for FY25 was 120 yen, with a payout ratio of 50.1%.

Outlook and guidance

• FY26 net sales forecasted to rise 63.1% to 1,900.0 bn yen, with operating profit up 13.3% to 320.0 bn yen.

• Net profit expected to increase 7.6% to 300.0 bn yen; annual dividend forecasted at 129 yen per share.

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

• Assumed exchange rates: 1 USD = 140 yen, 1 Euro = 155 yen; U.S. tariff rates as of April 10, 2025, maintained.