Consolidated Financial Highlights: Nintendo Co., Ltd.

Key insights

7 takeaways

01
Nintendo reported a significant fiscal downturn for the year ending March 31, 2025, with net sales falling 30.3% to 1,164.9 billion yen and operating profit dropping 46.6% to 282.5 billion yen.See it on page 1
02
The company has scheduled the release of its successor console, the Nintendo Switch 2, for June 5, 2025, as the primary driver for its fiscal 2026 recovery strategy.See it on page 4
03
Financial projections for the fiscal year ending March 31, 2026, target a rebound to 1,900.0 billion yen in net sales and 320.0 billion yen in operating profit.See it on page 2
04
Performance in the previous fiscal year was hampered by a 31.2% decline in hardware sales and a 22.2% decline in software sales for the current Nintendo Switch platform.See it on page 3
05
Despite the earnings decline, Nintendo maintains a robust financial position with 3,398.5 billion yen in total assets, a capital adequacy ratio of 80.2%, and 1,414.1 billion yen in cash and cash equivalents.See it on page 2
06
International markets remain critical to the company's revenue, accounting for 76.4% of total sales for the fiscal year.See it on page 3
07
The company declared a dividend of 120 yen per share, consistent with its policy of linking distributions to annual performance.See it on page 4

Summary

Nintendo Co., Ltd. reported a significant decline in financial performance for the fiscal year ended March 31, 2025, compared to the previous year. Net sales fell by 30.3% to 1,164.9 billion yen, while operating profit decreased by 46.6% to 282.5 billion yen. Profit attributable to owners of the parent dropped 43.2% to 278.8 billion yen. This downturn follows a period of high performance driven by major software releases in the prior year, with hardware and software sales for the Nintendo Switch platform declining by 31.2% and 22.2%, respectively. Despite these results, the company maintained a strong financial position, with total assets reaching 3,398.5 billion yen and a capital adequacy ratio of 80.2%.

The company operates as a single business segment, with 76.4% of its sales generated outside of Japan. Cash and cash equivalents increased to 1,414.1 billion yen by the end of the fiscal year, bolstered by proceeds from the sale and redemption of investment securities. Dividends for the fiscal year were established at 120 yen per share, reflecting the company’s policy of distributing profits based on annual performance.

Looking ahead, the company has announced the upcoming release of its successor console, the Nintendo Switch 2, scheduled for June 5, 2025. This launch is central to the financial forecast for the fiscal year ending March 31, 2026, which projects net sales of 1,900.0 billion yen and an operating profit of 320.0 billion yen. The company intends to leverage the new hardware and a robust software pipeline to stimulate growth, while acknowledging that these projections remain subject to market risks, including foreign exchange fluctuations and potential changes in international trade tariffs.