Nintendo Stands Firm on Guidance as Switch 2 Sales Fuel Strong Earnings

Nintendo’s fiscal results for the first nine months of its 2025–26 year show a remarkable sales surge driven by the Switch 2 console, yet the company is sticking with its full‑year forecasts despite stronger earnings. The hybrid console, launched in June 2025, has proven to be a significant growth engine, helping Nintendo post double‑digit profit and revenue increases year over year.

According to the latest figures, Nintendo’s operating profit jumped around 23 % to ¥155 billion ($995 million) in the most recent quarter, with annual results also showing a 51 % rise in net profit to roughly ¥358.9 billion ($2.3 billion). Revenues nearly doubled to nearly ¥1.9 trillion (~$12 billion), a leap attributed largely to sustained strong Switch 2 demand through the holiday season and beyond.

Despite accelerated sales, Nintendo maintained its full‑year sales and earnings guidance, including a targeted 19 million Switch 2 consoles sold by March 2026. Management’s cautious stance suggests confidence in long‑term performance while avoiding over‑optimistic expectations.

However, the market response has been mixed. Shares fell roughly 10 % on concerns about future momentum and the lack of standout game titles to sustain continued hardware sales growth — even as analysts acknowledge the Switch 2’s impressive launch trajectory.

Looking ahead, Nintendo’s position hinges on maintaining strong game releases and managing production amid tech cost challenges, even with an established fan base and solid console performance under its belt.

Sofiane Hamissa