Nintendo Co. (7974) Q4 2026 earnings summary

Executive summary

• Net sales for the year ended March 31, 2026 rose 98.6% year-over-year to ¥2,313.1 billion, driven by the launch of Nintendo Switch 2 and strong software sales, including major titles like Mario Kart World and Pokémon Pokopia.

• Operating profit increased 27.5% to ¥360.1 billion, while net profit attributable to owners of parent grew 52.1% to ¥424.1 billion, including a ¥32.6 billion gain on sale of investment securities.

• Ordinary profit surged 45.6% to ¥542.2 billion, supported by equity method gains, interest income, and foreign exchange gains.

• Hardware sell-through for Nintendo Switch 2 surpassed the original Switch's first full year, with annual playing users exceeding 100 million.

Financial highlights

• Comprehensive income for the year ended March 31, 2026 was ¥477.4 billion, up 52.1% year-over-year.

• Digital sales rose 25.0% to ¥407.6 billion, representing 54.6% of total software sales.

• Gross profit increased 28.0% to ¥908.9 billion, but gross profit ratio declined to 39.3% from 61.0%.

• SG&A expenses rose 28.3% to ¥548.8 billion, with significant increases in R&D and advertising.

• IP-related business sales declined 9.7% to ¥73.5 billion due to lower movie-related revenue.

Outlook and guidance

• FY27 net sales forecasted to decline 11.4% to ¥2,050.0 billion; net profit expected to drop 26.9% to ¥310.0 billion.

• Operating profit for FY27 is forecast at ¥370.0 billion (up 2.7%), ordinary profit at ¥430.0 billion (down 20.7%).

• Hardware sales for Nintendo Switch 2 projected to decrease 16.9% to 16.5 million units, while software sales are expected to rise 23.2% to 60 million units.

• Price increases for Nintendo Switch 2 scheduled in Japan (May 2026), US, and Europe (September 2026) factored into guidance.

• Rising component prices and tariffs expected to impact costs by approximately ¥100 billion.