iTechGuides is reader-supported. When you buy through links on our site, we may earn an affiliate commission. As an Amazon Associate I earn from qualifying purchases. Learn more
Nintendo Co., Ltd. reported net sales of ¥517.8 billion for fiscal 2027’s first quarter, down 9.5% from the same period a year earlier. The April–June 2026 quarter also brought higher operating, ordinary and net profit. The revenue decline is a change in the company’s reported sales—not, by itself, a measure of Nintendo’s stock-price performance.
What Nintendo reported for fiscal Q1 2027
Nintendo issued its results on August 6, 2026. The figures below compare April 1–June 30, 2026, with the corresponding quarter a year earlier. These are company-reported year-over-year comparisons, not analyst estimates.
| Measure | Fiscal Q1 2027 result | Year-over-year change |
|---|---|---|
| Net sales | ¥517.8 billion | Down 9.5% from ¥572.3 billion |
| Operating profit | ¥142.5 billion | Up 150.5%; operating margin was 27.5%, an increase of 17.6 percentage points |
| Ordinary profit | ¥206.1 billion | Up 115.1% |
| Net profit (profit attributable to owners of parent) | ¥147.4 billion | Up 53.5% |
Net sales measure revenue, while profit measures what remains after costs and other items are accounted for. The quarter therefore combined lower sales with substantially higher reported profit. Those measures tell different parts of the financial story and should not be treated as interchangeable.
Do these 3 things before closing this tab:
1Repair Windows errors before they cause bigger problems2Fix the driver behind crashes, sound loss and screen glitches3Clear out junk files and repair common Windows errorsWhy revenue fell while profit increased
Lower hardware sales weighed on the main business
Nintendo’s dedicated video game platform business recorded sales of ¥483.0 billion, down 13.1%. It includes hardware, accessories and amiibo, packaged and downloadable games, download-only software, add-on content and Nintendo Switch Online. Nintendo said the decline was primarily due to lower hardware unit sales, despite increased software unit sales and yen depreciation.
#1 Best Overall
- The next evolution of Nintendo Switch
- One system, three play modes: TV, Tabletop, and Handheld
- Larger, vivid, 7.9” LCD touch screen with support for HDR and up to 120 fps
- Dock that supports 4K when connected to a compatible TV*
- GameChat** lets you voice chat, share your game screen, and connect via video chat as you play
The comparison has an important timing factor: the year-earlier fiscal Q1 was the Nintendo Switch 2 launch quarter. Nintendo reported lower Switch 2 hardware volume in the current quarter than in that launch-period comparison, while software unit sales increased.
IP-related income grew, but was smaller than platform sales
IP-related income and other sales rose 107.4% to ¥34.8 billion. Nintendo’s category includes movie and video income, smart-device content, royalties and official-store merchandise. The company cited growth in movie and video income related in part to The Super Mario Galaxy Movie. The increase helped offset weaker platform sales, but the category remained much smaller than the dedicated-platform business.
Rank #2
- 6.2” LCD screen
- Three play modes: TV, tabletop, and handheld
- Local co-op, online, and local wireless multiplayer
- Detachable Joy-Con controllers
- Nintendo Switch is the home of Mario & friends
Exchange rates added to reported sales
Nintendo reported that exchange-rate changes had a positive ¥39.0 billion effect on net sales. This was a reported currency effect; it does not mean underlying hardware or software unit sales rose.
Recommended Free Tools
What drove the profit improvement
Gross profit increased 52.0% to ¥281.3 billion, and gross margin rose 22.0 percentage points to 54.3%. Nintendo attributed the improvement to factors including a greater software share of sales and refunds of U.S. tariffs imposed under the International Emergency Economic Powers Act (IEEPA) that had previously been recorded as cost of sales.
Rank #3
- Play your way with the Nintendo Switch gaming system. Whether you’re at home or on the go, solo or with friends, the Nintendo Switch system is designed to fit your life. Dock your Nintendo Switch to enjoy HD gaming on your TV. Heading out? Just undock your console and keep playing in handheld mode
- This model includes battery life of approximately 4.5 - 9 hours.
- The battery life will depend on the games you play. For instance, the battery will last approximately 5.5 hours for The Legend of Zelda: Breath of the Wild (games sold separately)
- Model number HAC 001( 01)
The company disclosed an approximately US$300 million reduction in cost of sales in connection with those tariff refunds. Nintendo said the tariffs had been borne primarily by the company rather than passed through to consumers in product prices. This cost-of-sales reduction contributed to profitability; it did not reverse the decline in net sales.
Hardware, software and digital sales in context
Nintendo’s unit figures are sell-in: sales by the Nintendo group to outside entities, including direct-to-consumer website sales and downloadable software. They are not a count of purchases by individual consumers.
Rank #4
- This pre-owned product is not Apple certified, but has been professionally inspected, tested and cleaned by Amazon-qualified suppliers.
- 6.2” LCD screen.
- Three play modes: TV, tabletop, and handheld
- Local co-op, online, and local wireless multiplayer
- Detachable Joy-Con controllers
| Reported measure | Fiscal Q1 2027 | Year-over-year change |
|---|---|---|
| Nintendo Switch 2 hardware sell-in | 3.82 million units | Down 34.4% |
| Nintendo Switch 2 software sell-in | 9.46 million units | Up 9.2% |
| Digital sales | ¥132.7 billion | Up 90.0%; 61.5% of software sales in the dedicated-platform business |
Digital sales are not identical to all software-related revenue: Nintendo classifies revenue from bundled software as hardware sales rather than software or digital sales. That accounting treatment matters when comparing hardware and software revenue categories.
Nintendo’s full-year forecast and its assumptions
Nintendo said its consolidated forecast for the fiscal year ending March 2027 was unchanged from the forecast announced May 8, 2026. The figures below are management forecasts, not completed results.
Best Value
- One player can use a Joy-Con in each hand
- Two players can each take one
- Multiple Joy-Con can be employed by numerous people for a variety of gameplay options (additional Joy-Con sold separately)
- Slip a set of Joy-Con into a Joy-Con grip accessory, mirroring a more traditional controller. Or, select an optional Nintendo Switch Pro Controller.
| FY2027 forecast measure | Forecast |
|---|---|
| Net sales | ¥2,050.0 billion |
| Operating profit | ¥370.0 billion |
| Ordinary profit | ¥430.0 billion |
| Net profit | ¥310.0 billion |
The forecast assumptions included tariff rates in effect at the end of March 2026, approximately ¥100.0 billion of cost-of-sales impact from rising component prices—particularly memory—and tariff measures, and exchange rates of ¥150 per U.S. dollar and ¥175 per euro. These are assumptions used in management’s outlook, not guarantees that costs or exchange rates will match those levels.
What the report does—and does not—say about Nintendo stock
The 9.5% figure describes the year-over-year change in Nintendo’s consolidated net sales. It does not state how Nintendo shares performed in response to the announcement, whether the shares are fairly valued, or what their future return might be. The earnings report is useful for understanding the company’s operating results, but it is not by itself a stock recommendation.
Nintendo’s investor-relations calendar listed six-month earnings for November 5, 2026, following the August 6 three-month report. Future reporting dates can change, so investors should check the company’s current calendar.
What’s actually slowing this PC down?
Pick the symptom - the matching free tool is one click away.
Sources: Nintendo Co., Ltd., FY2027 first-quarter financial results explanatory material, issued August 6, 2026; Nintendo Investor Relations Information page; Associated Press report by Yuri Kageyama, August 6, 2026.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
