GoKawiilHONG KONG, CHINA - 2026/03/06: A young shopper walks past a commercial advertisement for the Nintendo Switch, depicting the gaming character Mario, in Hong Kong. (Photo by Sebastian Ng/SOPA Images/LightRocket via Getty Images)
Nintendo reported fiscal first-quarter earnings on Thursday, beating analysts' revenue and profit estimates, even as its Switch 2 console sales saw a sharp decline.
Here's how Nintendo did in its fiscal first quarter ended June 30, compared with LSEG median estimates:
Revenue: 517.8 billion Japanese yen ($3.28 billion) versus 444.96 billion yen expected.
Net profit: 147.4 billion yen versus 78.30 billion yen expected.
Shares of the Japanese gaming giant closed 2.87% higher ahead of its earnings release.
The company maintained its forecast for the year ending March 2027 announced in May, keeping its net sales outlook unchanged at 2.05 trillion yen.
Nintendo Switch 2 hardware sales fell 34.4% from a year earlier to 3.82 million units, while sales of the original Nintendo Switch dropped 31.8% to 0.66 million units. The company said consumers continued to adopt the Switch 2 despite lower hardware sales than the year-ago period, supported by the release of new titles and other factors.
Nintendo said it has factored nearly a 100 billion yen impact from higher component prices, particularly for memory, and tariffs into its cost of sales.
Nintendo's flagship Switch 2, launched last June, uses memory chips whose prices have risen sharply against a backdrop of robust AI demand.
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