Nintendo released its 2025 Q2 results (FY26 Q1), showing an increase in profit of 4%, up to ¥56.9 billion ($378 million), thanks to record sales of the Switch 2.
Since the console’s release on June 6, the company reported it has sold more than six million units. The five million sales in its first month made it the fastest-selling console in history.
Nintendo noted in its Q2 report, “The system has gotten off to a good start, with global sales (sell-through) exceeding 3.5 million units in the first four days after launch, which is the highest-ever global sales level for any of our dedicated video game platforms.
“In response to the strong demand that has surpassed our expectations, we are strengthening production to increase supply.”
Net sales reached ¥572.3 billion ($3.8 billion), with 79.5% from outside Japan, suggesting tariffs are having a minimal effect on the company. Concerns linger over U.S. tariffs on Vietnamese imports, however, which may force Nintendo to raise the Switch 2 pricing by 18–20%.
Mario Kart World leads the way for the company’s software sales, with 8.67 copies sold, many part of a bundle with the console.
Stock Continues Decline, Remains Up For Year
Despite the strong numbers, analysts expect sales to taper off, which has harmed investor confidence. As a result, the company’s share price continues to fall.
Following the release of the results, Nintendo stock dropped from ¥12,690 ($84.29) to ¥12,595 ($83.66). This continues a trend of decline since the end of June, when the price reached an all-time high of ¥13,880 ($92.20).
The price remains up from ¥9,070 ($60.25) since the start of the year, an increase of almost 40%.
Switch 2 Direct Fails to Inspire Investors
The Switch 2 Direct held on July 31 offered surprises, but no revolutionary releases on the horizon. The event focused on third-party releases, starting with a trailer for Dragon’s Dogma 2: Cloud Edition. Fans waiting for Zelda, Metroid Prime 4, or Kirby will have to wait.
A further Direct event is expected in late August or September, which could reveal more releases to boost sales momentum in the next quarter.
Nintendo expects to sell 15 million Switch 2 units by March 2026, and forecasts sales of 45 million next-gen titles. The company also predicts 105 million legacy titles sold across both platforms, for a total near 150 million units, slightly below FY25’s 155 million.
For the financial year ending in March next year, the company projects a 13% rise in operating profit to ¥320 billion, up from ¥282.5 billion in FY25 ($2.22 billion).
