Nintendo fiscal Q3 earnings

Nintendo’s It maintained its full-year sales forecast for the Switch 2 on Tuesday, allaying some fears that the flagship console was losing momentum.

The company maintained its November forecast that Switch 2 sales would be 19 million units in the fiscal year ending March 2026. Nintendo has sold 17.37 million units of Switch 2 so far. It sold 7 million units in the December quarter alone.

Here’s how Nintendo performed according to LSEG estimates in its fiscal third quarter ending December 31:

• Revenue: 806.32 billion Japanese yen ($5.2 billion), versus expectations of 847.73 billion yen.
• Net profit: 159.93 billion yen versus expectations of 147.3 billion yen.

Revenue rose 86% year-on-year, while profits rose 24%.

Nintendo’s share price has been under pressure over the past few months. Following the launch of Switch 2 in June, the gaming giant’s shares hit a record high of over 14,000 yen in August. But the stock has fallen more than 30% since then.

There was some concern that Switch 2 sales were becoming difficult ahead of the key holiday sales period in December. However, since the launch of Switch 2, “Mario Kart World” has recorded sales of approximately 14 million units, while “Donkey Kong Bananza” has recorded sales of 4.25 million units. These are Nintendo’s most popular games for the console so far.

Investors are monitoring several potential downsides for Nintendo, including whether the company will be hit by an unprecedented increase in prices for memory, a key component of its consoles. Another is whether the company has a game pipeline strong enough to support the Switch 2.

For Switch 2, Nintendo plans to release “Mario Tennis Fever” in February and “Pokémon Pokopia” in March, two games from its most popular series.

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