Nintendo stock: First-half profit rises 11% despite lower sales

Published on 11/05/2026 at 09:29 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Nintendo stock now faces a sharper hardware test after Switch 2 demand weakened in the latest quarter. Software and tariff effects supported earnings.

First-Half Results Shift Nintendo's Focus

Software sales and a U.S. tariff refund lifted operating profit despite lower hardware volumes.
Nintendo kept its fiscal-year sales, profit and Switch 2 shipment targets unchanged.
Digital revenue and intellectual-property income grew strongly during the six-month period.

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Nintendo reported stronger profit but lower sales for the six months ended September 30, 2026, keeping the company on course for a closely watched second half. The results were published on Thursday, November 5, and are available through MarketScreener, which carried Nintendo's financial release.

Profit attributable to owners of the parent rose 11.0 percent year over year to 220.917 billion yen. Net sales declined 12.1 percent to 966.041 billion yen, reflecting lower hardware volumes. Operating profit nevertheless jumped 49.1 percent to 216.500 billion yen, helped by a greater contribution from software and a first-quarter refund of U.S. tariffs that had previously been recorded in cost of sales.

Switch 2 Builds Software Momentum

Nintendo sold 6.49 million Switch 2 consoles during the first half and 24.49 million Switch 2 software units. Original Switch hardware sales reached 1.27 million units, while software sales totaled 65.73 million units. Nintendo said titles including Star Fox, Splatoon Raiders and Fire Emblem: Fortune's Weave contributed to Switch 2 software demand, while established releases also continued to sell.

Digital sales rose 60.5 percent to 249.6 billion yen, mainly because of higher downloads of packaged software. Revenue from intellectual-property-related businesses increased 87.9 percent to 62.7 billion yen, supported by audience engagement with The Super Mario Galaxy Movie. These figures show how software and entertainment assets are cushioning the pressure from hardware unit sales.

Full-Year Targets Remain Unchanged

Nintendo left its forecast for the fiscal year ending March 31, 2027, unchanged. The company continues to target net sales of 2.050 trillion yen, operating profit of 370.0 billion yen and profit attributable to owners of 310.0 billion yen. It also maintained its objective of delivering 16.5 million Switch 2 consoles during the fiscal year.

The planned dividend is 76 yen per share for the interim payment and 86 yen for the year-end payment, implying an annual payout of 162 yen. Nintendo's next software pipeline includes The Legend of Zelda: Ocarina of Time in November and Metroid Ravenous in January, while the company is also promoting the Zelda 40th Anniversary Edition of Switch 2.

The real-time quote of Nintendo stock showed Nintendo stock at 46.30 euros on Lang & Schwarz at 09:20 CET on Thursday, November 5, 2026.