Nintendo posted net income of ¥147.4 billion (about US$934 million) for the fiscal first quarter ended June 30, surpassing analyst estimates of ¥77.8 billion [1, 2, 3, 4, 5, 6, 7, 8]. Revenue fell about 10% year-on-year to ¥517.8 billion but still exceeded market expectations [1, 2, 3, 4, 5, 6].

A major factor behind the stronger profit was a $300 million refund from US tariffs imposed in 2025 and later rescinded, which reduced Nintendo's cost of sales [1, 2, 9, 3, 5, 6, 7]. Operating profit rose by more than 150% compared to the same period last year, partly driven by these tariff refunds and solid game sales [9, 7]. Nintendo said it bore the tariff costs itself and did not pass the refund gains on to customers, a position it is defending in court against a class action lawsuit [2, 7].

Nintendo sold 3.82 million units of the Switch 2 console in the quarter, down about 34% from a year earlier [1, 4, 6, 7]. Older Switch consoles sold 660,000 units during the period [9, 4]. Despite the decline in hardware sales, Nintendo’s software sales on the Switch 2 rose, led by strong performances from two in-house titles: Tomodachi Life: Living the Dream with 7.94 million units and Pokémon Pokopia with 1.27 million units sold [1, 3, 4, 6, 8]. Yet, major hits from flagship franchises like Super Mario and The Legend of Zelda are still absent on Switch 2 [1, 3, 5].

Nintendo’s intellectual property-related income, including movies, apps, and merchandise, grew significantly, boosted by the April release of The Super Mario Galaxy Movie [9, 3, 4]. Analysts noted hardware sales benefited from last-minute demand ahead of planned price hikes, but called for stronger software releases toward the year-end shopping season [6]. Other experts pointed to rising component costs and tariffs as ongoing concerns for investors [3].

Nintendo raised Switch 2 prices internationally, including a scheduled US increase from $449.99 to $499.99 effective September 1, 2026 [1, 4, 5, 6]. The company maintains its annual profit forecast of ¥310 billion for fiscal 2026-27 and expects to sell about 16.5 million Switch 2 units during the year, down 17% from the prior year [4, 8].

The next key date for Nintendo will be September 1, when US consumers will see the new higher retail price for the Switch 2 console take effect.