Nintendo's fiscal first-quarter profit and revenue beat estimates, despite Switch 2 sales slump

August 6, 2026 - 07:10

Nintendo posted better-than-expected profit and revenue for its fiscal first quarter on Thursday, though the company's latest console continued to struggle out of the gate. The Japanese gaming giant reported operating income of 54.2 billion yen, comfortably ahead of analyst projections, while revenue came in at 246.6 billion yen, also topping consensus estimates.

The results were driven largely by strong software sales and a weaker yen, which boosts the value of overseas earnings. However, the spotlight remained on the Switch 2, which has seen sluggish demand since its launch. Nintendo sold only 1.2 million units of the new console during the quarter, a figure that fell short of the 1.5 million expected by market watchers.

Company executives acknowledged the slow start but pointed to a packed lineup of upcoming titles, including a new Mario Kart and several third-party ports, as reasons for optimism in the second half of the fiscal year. They also noted that production constraints, not weak consumer interest, were the primary factor limiting shipments.

Despite the console miss, Nintendo's digital sales and mobile revenue showed steady growth, helping to cushion the impact. The company maintained its full-year guidance, signaling confidence that the Switch 2 will pick up momentum as the holiday season approaches. Shares rose slightly in early trading following the announcement, as investors focused on the earnings beat rather than the hardware shortfall.