Nintendo Financial Results Explanatory Material: 2nd Quarter of Fiscal Year Ending March 2026

Nintendo’s financial results for the first half of the fiscal year ending March 2026 demonstrate significant growth driven by the June 2025 launch of the Nintendo Switch 2. For the period spanning April 1, 2025, to September 30, 2025, net sales reached 1,099.5 billion yen, a 110.1% increase year-on-year. Operating profit rose 19.5% to 145.1 billion yen, while net profit attributable to owners of the parent surged 83.1% to 198.9 billion yen. This performance was bolstered by foreign exchange gains and a 32.3 billion yen gain on the sale of investment securities.

The dedicated video game platform segment served as the primary growth engine, with sales increasing 119.7% to 1,066.1 billion yen. The Nintendo Switch 2 surpassed 10 million cumulative units sold within its first four months, contributing to a higher proportion of hardware sales relative to total revenue. Conversely, the gross profit margin declined by 24.6 percentage points to 36.2%, attributed to the higher cost structure of the new hardware. IP-related income saw a 12.4% decline to 33.3 billion yen, largely due to reduced revenue from The Super Mario Bros. Movie compared to the previous year.

Reflecting strong initial demand and updated market outlooks, the company revised its full-year financial forecast upward. Net sales projections were increased by 18.4% to 2,250.0 billion yen, and net profit expectations were raised to 350.0 billion yen. The hardware sales forecast for the Nintendo Switch 2 was adjusted to 19.00 million units, while the forecast for the original Nintendo Switch was lowered to 4.00 million units. Additionally, the company modified its dividend policy, resulting in an increased annual dividend forecast of 181 yen per share. These results account for foreign exchange fluctuations and U.S. tariff measures effective as of September 30, 2025.