Nintendo stock: Profit rises as Switch 2 sales slow

Published on 11/06/2026 at 09:33 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Nintendo stock faces a holiday test after first-half profit improved despite slower Switch 2 hardware sales. Management kept its annual outlook unchanged.

Profit resilience meets hardware pressure

Nintendo's software portfolio and digital business offset weaker Switch 2 hardware demand in the first half.
The company left its full-year financial forecast unchanged through March 2027.
Upcoming releases are central to Nintendo's plan to expand the Switch 2 installed base.

Nintendo, JP3756600007, Illustration mit AI erstellt.

Nintendo reported stronger profitability for the six months ended September 30, 2026, even as hardware demand slowed. The results, published on November 5 and carried by MarketScreener from the company's release, put the focus on the balance between Switch 2 adoption and software monetization.

Net sales fell 12.1 percent year over year to 966.041 billion yen. Operating profit increased 49.1 percent to 216.500 billion yen, while profit attributable to owners of the parent rose 11.0 percent to 220.917 billion yen. Nintendo said the higher-margin software mix and a first-quarter refund of US IEEPA tariffs previously recorded in cost of sales supported operating profit.

Software offsets slower console demand

Switch 2 hardware sales totaled 6.49 million units in the first half. Nintendo Switch hardware added 1.27 million units. Switch 2 software sales reached 24.49 million units, while software for the original Switch totaled 65.73 million units.

Several releases supported the software performance. Star Fox sold 1.17 million units, Splatoon Raiders reached 2.42 million, and Fire Emblem: Fortune's Weave sold 1.34 million. On the original Switch, Tomodachi Life: Living the Dream sold 8.81 million units and Rhythm Heaven Groove reached 2.89 million.

Digital sales rose 60.5 percent to 249.6 billion yen, mainly because of higher downloads of packaged software. Revenue from Nintendo's intellectual-property business climbed 87.9 percent to 62.7 billion yen, supported by audience engagement with The Super Mario Galaxy Movie. These figures show how software and adjacent entertainment revenue helped cushion the hardware slowdown.

Nintendo stock traded at 46.20 euros on Lang & Schwarz at 09:30 CET on Friday, November 6, 2026. Investors can follow the real-time quote of Nintendo stock.

Annual targets remain demanding

Nintendo made no changes to its fiscal-year forecast through March 31, 2027. The company still expects net sales of 2.05 trillion yen, operating profit of 370.0 billion yen, ordinary profit of 430.0 billion yen and profit attributable to owners of the parent of 310.0 billion yen.

That outlook leaves the holiday period as an important test for the Switch 2 installed base. Nintendo said it plans to expand sales of existing titles while introducing new software and using the original Switch's installed base to maintain engagement. Nintendo Switch Sports Resort launched in October, The Legend of Zelda: Ocarina of Time is scheduled for November, and Metroid Ravenous is planned for January.

For investors, the earnings mix is constructive for margins but less reassuring for hardware momentum. The unchanged forecast signals that management is relying on upcoming software and seasonal demand to support the second half rather than lowering its ambitions after the slower console sales.

The latest news and analysis on Nintendo stock will track software launches, hardware demand and any changes to the annual outlook.

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