Nintendo reported a strong first quarter for the fiscal year ending March 2027, with operating profit up 150.5 percent year-on-year to 142.6 billion yen despite lower hardware volumes. In its consolidated financial highlights for the three months ended June 30, 2026, the company posted net sales of 517.8 billion yen, down 9.5 percent, and ordinary profit of 206.2 billion yen, up 115.1 percent, with profit attributable to owners of parent at 147.4 billion yen.
Related coverage: Roblox Q2 Revenue Jumps 36% to
Nintendo reported a strong first quarter for the fiscal year ending March 2027, with operating profit up 150.5 percent year-on-year to 142.6 billion yen despite lower hardware volumes. In its consolidated financial highlights for the three months ended June 30, 2026, the company posted net sales of 517.8 billion yen, down 9.5 percent, and ordinary profit of 206.2 billion yen, up 115.1 percent, with profit attributable to owners of parent at 147.4 billion yen.
.5 Billion as User Base Hits 123 Million.
The profit swing came from a mix of software growth, the digital business, and a one-time benefit: Nintendo said operating profit rose partly because of the refund of IEEPA tariffs in the US, which had been recorded as cost of sales in prior periods. Software now accounts for a larger share of revenue, and digital sales reached 132.7 billion yen, up 90.0 percent year-on-year, driven by downloadable versions of packaged titles. The IP-related business also jumped 107.4 percent to 34.8 billion yen, helped by the theatrical run of The Super Mario Galaxy Movie.
Hardware tells a different story. Nintendo Switch 2 sales totaled 3.82 million units in the quarter, down 34.4 percent from the same period last year, when the console launched in June 2025 and shipped 5.82 million units in its first quarter. Nintendo Switch added 0.66 million units, down 31.8 percent. Software, by contrast, grew on both platforms: Switch 2 software rose 9.2 percent to 9.46 million units, and Switch software climbed 38.6 percent to 33.81 million units, led by Tomodachi Life: Living the Dream at 7.94 million units.
The full details are in Nintendo’s financial results explanatory material, which also covers the hardware and software sales forecast for the year. Nintendo kept its full-year guidance unchanged from May 8: net sales of 2,050 billion yen, operating profit of 370 billion yen, and a Switch 2 hardware forecast of 16.50 million units, down from the 19.86 million sold in the prior fiscal year. The Switch 2 software forecast is 60 million units, up 23.2 percent.
The forecast was announced on May 8 alongside a planned Switch 2 price revision that the company detailed at the same time: the console moves from $449.99 to $499.99 in the US and from 469.99 to 499.99 euros in Europe on September 1, with a similar increase already applied in Japan in May. Nintendo says Switch 2 software momentum remains strong, with Splatoon Raiders already out in July and Fire Emblem: Fortune’s Weave, Nintendo Switch Sports Resort, and The Legend of Zelda: Ocarina of Time scheduled for the rest of 2026.
The quarter shows Nintendo’s model working as intended a year into the Switch 2 generation: hardware is a shrinking but still profitable base, while software attach rates and the digital share keep pushing profit up. The tariff refund inflated the operating number, but even without it the software mix would have produced growth, and the unchanged guidance signals management sees the current trajectory as stable. Results cover April through June 2026; Nintendo next reports with the fiscal first-half results in November.
