Nintendo Q1 FY2026: Switch 2 Launch Sparks 132 % Revenue Surge and 6M Units Sold

In its fiscal first quarter ending June 30, 2025, Nintendo reported a 132% year-over-year revenue jump to ¥572.3 billion (≈ $3.8 billion), fuelled by the blockbuster launch of the Switch 2 console. Operating profit rose 4% to ¥56.9 billion (~$378 million), exceeding analyst expectations and cementing the success of the new hardware (and surpassing forecasts).

The Switch 2—released on June 5, 2025—sold over 6 million units in its first seven weeks, more than doubling the original Switch’s debut record. Nintendo confirmed it remains on track to sell 15 million units by the end of its fiscal year in March 2026.

Demand surged for bundle offerings such as Mario Kart World, which drove software sales to 8.67 million units in the quarter. That, combined with the higher price point (~¥67,000 / ~$450 USD) of the Switch 2 relative to the original Switch, significantly boosted average revenue per unit.

Even with macroeconomic headwinds—like new U.S. tariffs on Vietnamese-manufactured goods—Nintendo maintained its full-year guidance, indicating strong supply chain resilience and pricing strategy strength. Revenue from its IP-related businesses—including royalties and licensed content—declined 4% year-over-year, as the previous Super Mario Bros. movie boost faded.

Despite the strong earnings, Nintendo’s share price dipped slightly before the report, though it remains up around 33–48% year-to-date, reflecting investor confidence in Switch 2 demand and growth potential.

Wedbush analyst Alicia Reese reaffirmed an “Outperform” rating, citing the console’s explosive early sales and optimistic adoption outlook through the holiday season.

Nintendo’s performance marks a dramatic turnaround from recent years of softening legacy Switch sales. This quarter’s momentum proves early-priced enthusiasm for new hardware, strong franchise appeal, and supply execution can drive comeback narratives—even amid global trade concerns.

The launch of condensers like Donkey Kong Bananza, alongside Zelda remasters optimized for Switch 2 hardware, signals strategic content alignment and software pipeline depth. The console’s dual-mode (handheld and docked) design remains central to its success, combining mobile flexibility with home gaming power.

Despite lower margins—gross profit margin declined due to hardware mix shifts—the upside lies in the growing installed base and scalable software revenues. Nintendo is reinforcing production lines to meet surging demand and uphold the projected 15 million unit sell-through target.