Nintendo reported a 150.5% increase in operating profit to 142.6 billion yen for the quarter ending June 30, 2026, despite a 9.5% year-on-year decline in net sales to 517.8 billion yen.
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Ordinary profit surged 115.1% to 206.2 billion yen, supported by foreign exchange gains, equity method earnings, and a one-time refund of U.S. IEEPA tariffs.
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Digital sales grew by 90.0% to 132.7 billion yen, while IP-related business revenue more than doubled, rising 107.4% to 34.8 billion yen due to the success of The Super Mario Galaxy Movie.
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The Nintendo Switch 2 sold 3.82 million hardware units during the quarter, while the legacy Nintendo Switch platform contributed an additional 0.66 million units.
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International markets remain critical to the company's financial health, accounting for 77.9% of total sales for the quarter.
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Management maintained its full-year fiscal forecast for March 31, 2027, targeting 2,050 billion yen in net sales and 370 billion yen in operating profit.
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The company maintains a strong balance sheet with total assets of 3,815.9 billion yen and a capital adequacy ratio of 76.5% as of June 30, 2026.
Insights
01
Nintendo reported a 150.5% increase in operating profit to 142.6 billion yen for the quarter ending June 30, 2026, despite a 9.5% year-on-year decline in net sales to 517.8 billion yen.
02
Ordinary profit surged 115.1% to 206.2 billion yen, supported by foreign exchange gains, equity method earnings, and a one-time refund of U.S. IEEPA tariffs.
03
Digital sales grew by 90.0% to 132.7 billion yen, while IP-related business revenue more than doubled, rising 107.4% to 34.8 billion yen due to the success of The Super Mario Galaxy Movie.
04
The Nintendo Switch 2 sold 3.82 million hardware units during the quarter, while the legacy Nintendo Switch platform contributed an additional 0.66 million units.
05
International markets remain critical to the company's financial health, accounting for 77.9% of total sales for the quarter.
06
Management maintained its full-year fiscal forecast for March 31, 2027, targeting 2,050 billion yen in net sales and 370 billion yen in operating profit.
07
The company maintains a strong balance sheet with total assets of 3,815.9 billion yen and a capital adequacy ratio of 76.5% as of June 30, 2026.