Nintendo Earnings: Switch Two Strength, Guidance Unchanged
Nintendo earnings show Switch Two-driven sales and profit gains and kept full-year forecasts unchanged, reducing trader concern about memory-chip costs.
KEY TAKEAWAYS
- Switch Two drove revenue and profit, with 17.37 million hardware units and 37.93 million software units sold.
- Nine-month net sales nearly doubled to 1,905.8 billion yen, and net profit rose 51.3%.
- Company left full-year FY26 forecasts unchanged, citing Switch Two momentum and manageable chip-costs.
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Nintendo earnings (NTDOF, NTDOY) on Feb. 3, 2026, showed rising sales and profitability, and the company left full-year FY26 forecasts unchanged, saying strong Switch 2 sales supported the outlook despite rising memory-chip prices.
Earnings, Forecasts, and Switch 2 Sales
Nintendo reported net sales of 1,905.8 billion yen for the nine months ended Dec. 31, 2025, nearly doubling year over year. Sales outside Japan accounted for 77.2% of the total, reaching 1,470.4 billion yen. Net profit rose 51.3% to 358.8 billion yen. Operating profit increased 21.3% to 300.3 billion yen, and ordinary profit climbed 39.4% to 455.8 billion yen. Digital revenue grew 14.7% to 282.0 billion yen, while income from intellectual property fell 10.1% to 54.5 billion yen. The company revised its foreign-exchange assumptions to 150 yen per U.S. dollar and 170 yen per euro, up from 140 and 160, respectively. It said rising memory-chip prices have not significantly affected earnings this fiscal year. Nintendo maintained its full-year FY26 forecasts, reaffirming unit-sales and consolidated financial targets announced in November 2025.
Since its June 5, 2025 launch, Nintendo Switch 2 hardware has sold 17.37 million units, with software sales totaling 37.93 million units. These figures were key drivers of the period’s revenue growth. First-party Switch 2 titles include Mario Kart World, which sold 14.03 million copies including bundles; Donkey Kong Bananza with 4.25 million; Kirby Air Riders at 1.76 million; and the Switch 2 edition of Pokémon Legends: Z-A, which reached 3.89 million packaged units. Pokémon Legends: Z-A launched in October 2025 alongside Super Mario Galaxy 2 and Super Mario Galaxy, which sold 2.42 million and 2.28 million units, respectively. Kirby Air Riders arrived in November 2025.
The original Nintendo Switch remains a significant installed base, with lifetime hardware sales of 155.37 million units and 3.25 million shipped during the nine-month period. Lifetime software sales for the original Switch reached 1.5 billion units, including 108.93 million sold in the period. Nintendo plans to release Mario Tennis Fever in February 2026 and Pokémon Pokopia in March 2026. It also highlighted third-party titles as a way to expand the install base. The company intends to leverage the original Switch’s large installed base and extensive software library to sustain sales as the Switch 2 lineup matures.
