Nintendo Shares Jump as Switch 2 Sales Boost Earnings

Nintendo shares surged nearly 5% on Friday after the Japanese gaming giant reported stronger-than-expected first-quarter earnings and upgraded its full-year financial outlook, supported by robust demand for the new Switch 2 console.

Nintendo Co Ltd (TYO: 7974) ended the session 4.8% higher at ¥8,011, significantly outperforming the broader Nikkei 225, which fell 0.8%. The rally followed the release of Nintendo’s quarterly financial results after the market closed on Thursday.

For the quarter ended June 30, Nintendo reported net profit attributable of ¥145.4 billion, a sharp increase from ¥80.9 billion in the same period a year earlier. The result comfortably exceeded the S&P Global Visible Alpha consensus forecast of ¥119.8 billion.

Quarterly revenue more than doubled to ¥572.3 billion from ¥246.6 billion a year ago. That also surpassed analysts’ expectations of ¥506.9 billion, highlighting the impact of the Switch 2 launch and healthy sales of Nintendo’s first-party games.

The company’s latest performance prompted Nintendo to raise its financial guidance for the full year. It now expects net profit of ¥380 billion, compared with its previous forecast of ¥340 billion.

Nintendo also increased its annual revenue forecast to ¥2.15 trillion from ¥1.90 trillion. Its operating profit outlook was lifted to ¥500 billion from the previously projected ¥450 billion.

The Switch 2 has emerged as a key growth driver for the gaming company. Nintendo said shipments of its latest-generation console reached 8.67 million units during the quarter, coming in well ahead of market expectations.

Software sales also remained strong, with first-party Nintendo titles released alongside the Switch 2 helping support overall performance.

The upbeat earnings, stronger guidance and solid early demand for the Switch 2 have strengthened investor confidence in Nintendo’s growth prospects. With hardware shipments exceeding expectations and software demand holding firm, investors are closely watching whether the Switch 2 can sustain its sales momentum through the remainder of the fiscal year.