Nintendo Exceeds Expectations with Strong Q2 Performance
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Nintendo Exceeds Expectations with Strong Q2 Performance
- Nintendo reported a net income of ¥147.4 billion ($934 million) for the June quarter, significantly surpassing analyst estimates of ¥77.8 billion.
- This strong performance was partly attributed to a refund of US tariffs that were imposed in 2025 and later rescinded, and robust sales of in-house titles like *Tomodachi Life: Living the Dream* and *Pokémon Pokopia*.
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Nintendo Co. announced stronger-than-expected earnings for its June quarter, with net income reaching ¥147.4 billion ($934 million). This figure considerably exceeded the analyst consensus estimate of ¥77.8 billion. Revenue for the quarter was ¥517.8 billion, also surpassing market expectations of ¥448.8 billion, despite a nearly 10% decline year-over-year.
A substantial factor contributing to the boosted earnings was a reduction in the cost of sales, stemming from refunds of import tariffs that the US had imposed in 2025 and subsequently rescinded. This reversal of tariffs has positively impacted the broader Japanese electronics sector, including companies like Sony Group Corp and Canon Inc.
Software sales for the Switch 2 console were particularly strong, with hits like *Tomodachi Life: Living the Dream* selling 7.94 million units by the end of the quarter, and *Pokémon Pokopia* also performing well. Overall, Switch 2 software sales reached 9.46 million units, a 9.2% increase year-on-year. This strong software performance and intellectual property-related income, which more than doubled due to the success of “The Super Mario Galaxy Movie” released in April, helped offset a decline in Switch 2 console sales. Console shipments for the Switch 2 were down 34.4% year-on-year to 3.82 million units for the quarter.
Nintendo has maintained its annual sales forecast of 16.5 million Switch 2 consoles and its full-year net profit forecast of ¥310 billion for the fiscal year ending March 2027. The company anticipates additional costs of approximately ¥100 billion due to rising memory chip prices and other components.