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Nintendo
Distilling the key insights…
Nintendo’s consolidated financial results for the nine months ended December 31, 2025, demonstrate significant growth driven by the successful launch of the Nintendo Switch 2 hardware. Net sales reached 1,905.8 billion yen, representing a 99.3% increase compared to the same period in the previous fiscal year. Operating profit rose by 21.3% to 300.3 billion yen, while profit attributable to owners of the parent grew by 51.3% to 358.8 billion yen. This performance was bolstered by robust hardware and software sales, alongside 47.8 billion yen in foreign exchange gains and 32.6 billion yen in extraordinary income from the sale of investment securities.
The hardware launch on June 5, 2025, served as the primary catalyst for this growth, with the Nintendo Switch 2 achieving 17.37 million units in sales by the end of the third quarter. Software sales for the new platform totaled 37.93 million units, led by strong performances from titles such as Mario Kart World, which sold 14.03 million units. The legacy Nintendo Switch platform also maintained stability, contributing 3.25 million hardware units and 108.93 million software units. Digital business revenue grew by 14.7% year-on-year, though the IP-related business experienced a 10.1% decline due to reduced movie-related earnings.
Geographically, the company continues to maintain a strong international presence, with 77.2% of total sales generated outside of Japan. The financial position remains solid, with total assets increasing to 3,863.3 billion yen and a capital adequacy ratio of 77.0%. Looking ahead, the company has maintained its full-year consolidated financial forecast, which anticipates net sales of 2,250 billion yen and an operating profit of 370 billion yen. Management has adjusted its foreign exchange assumptions to 150 yen per U.S. dollar and 170 yen per euro to reflect current market conditions.
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