Nintendo posts fiscal Q1 profit above forecasts despite lower Switch 2 sales
Nintendo reported revenue of 517.8 billion yen and net profit of 147.4 billion yen for the fiscal quarter ended June 30, surpassing analysts' estimates while hardware shipments of the Switch 2 fell year-on-year.
Nintendo announced fiscal first-quarter results on Thursday that exceeded market expectations. Revenue reached 517.8 billion yen (about $3.28 billion) against the LSEG median forecast of 444.96 billion yen, and net profit was 147.4 billion yen compared with the anticipated 78.30 billion yen. The company’s shares closed 2.87 % higher ahead of the release.
The firm kept its full-year sales outlook unchanged at 2.05 trillion yen for the period ending March 2027, a target set in May. However, shipments of the Switch 2 console declined 34.4 % from a year earlier to 3.82 million units, and sales of the original Switch fell 31.8 % to 0.66 million units. Nintendo said the lower hardware volume reflects higher component costs, noting a near 100 billion-yen impact from rising memory-chip prices and tariffs.
Game sales helped offset the hardware slowdown, with titles such as "Tomodachi Life: Living the Dream" selling 7.94 million units and "Pokémon Pokopia" moving 1.27 million units. Nintendo emphasized that a regular flow of new releases is essential for expanding the Switch 2 user base and attracting a broader audience.
In Japan, the company raised the Switch 2 price on May 25, and it plans a $50 price increase in the United States to $499.99 effective Sept. 1, citing cost pressures.