Nintendo Co.
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Nintendo Co. (7974) investor relations material

Nintendo Co. Q3 2026 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2026 earnings summary3 Feb, 2026

Executive summary

  • Net sales nearly doubled year-over-year for Q1–Q3 FY26, reaching ¥1,905.8 billion, driven by the launch of Nintendo Switch 2 and strong software performance.

  • Operating profit increased 21.3% year-over-year to ¥300.4 billion, and net profit rose 51.3% to ¥358.9 billion.

  • Nintendo Switch 2 became the fastest-selling hardware in company history, reaching 15 million units sold-through by December 2025 and 17.37 million units sold in Q1–Q3.

  • The launch of Nintendo Switch 2 in June 2025 drove record hardware and software sales through the holiday season.

Financial highlights

  • Net sales: ¥1,905.8bn (+99.3% YoY); Operating profit: ¥300.3bn (+21.3% YoY); Net profit: ¥358.8bn (+51.3% YoY).

  • Ordinary profit totaled ¥455.8bn (+39.4% YoY), including ¥64.8bn from equity method entities and ¥47.8bn in FX gains.

  • Gross profit: ¥712.4bn (+26.0% YoY); Gross margin declined to 37.4% from 59.1%.

  • Digital sales rose 14.7% YoY to ¥282.0bn, accounting for 50.4% of software sales.

  • SG&A expenses increased 29.6% YoY, with notable rises in R&D (+21.8%) and advertising (+66.2%).

Outlook and guidance

  • FY26 full-year forecast unchanged: Net sales ¥2,250bn (+93.1%), operating profit ¥370bn (+30.9%), net profit ¥350bn (+25.5%).

  • Dividend forecast raised to ¥181 per share.

  • Hardware sales forecast: Nintendo Switch 2 at 19m units, Nintendo Switch at 4m units.

  • Software sales forecast: Nintendo Switch 2 at 48m units, Nintendo Switch at 125m units.

  • Major software releases planned, including Mario Tennis Fever and Pokémon Pokopia.

Impact of FX revision on full-year forecast
Sustainability of non-operating profit drivers
Strategy for original Switch software sales
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Frequently asked questions

The generational favorite

Nintendo is for sure one of those brand names you are familiar with and probably one of the most dominant gaming companies of the last few decades. Their business operations are, however, less well known, possibly because they count their profits in Japanese yen rather than US dollars. 

The Nintendo devices

The Japan-based company has sold hundreds of millions of gaming devices and billions of games throughout its history, such as the Game Boy, the Super Nintendo Entertainment System, the Nintendo DS, the Wii, and the Switch. Some major franchises include Mario (their mascot and most recognized character), Donkey Kong, The Legend of Zelda, Pokémon, Kirby, and Super Smash Bros. 

In the coming years, you should keep an eye on a couple of key areas in Nintendo's development:

  • Their next-generation gaming device. Their latest device, The Switch, is getting old and needs a true upgrade. Nintendo will likely release a new device in the next year or two, given its historical upgrade cycle. This up-to-date device is imperative for Nintendo’s future success, as it is the engine that keeps people buying their games.

  • Subscription services. Nintendo recently built an online subscription service similar to Xbox and Playstation to get more consistent earnings. Their service Nintendo Switch Online (NSO), can be very lucrative, with a more significant amount of recurring revenue and high-profit margins. 

  • Expanding into non-gaming entertainment. Nintendo has decided to become more Disney-like, expanding their hugely successful franchises into theme parks and video entertainment. 

Gaming—a rapidly changing market

Nintendo is really transforming their business operations. The company might be a lot different in the future, with multiple theme parks, a growing library of movies, subscription services, and an eventual new hardware device. 

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