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Nintendo’s second-quarter results for the fiscal year ending March 2027, covering April through September 2026 and announced on November 5, 2026, show net sales of $6.31 billion (down 12.1% year over year) and operating profit of $1.42 billion (up 49.1%) — lower revenue, higher profit. Nintendo Switch 2 sold 6.49 million units in the half, bringing lifetime sales to 26.35 million.
Hardware slipped, but software picked up the slack. Switch 2 software moved 24.49 million units (up 18.8%), while Switch software moved 65.73 million (up 6.8%). Titles released this fiscal year did the heavy lifting: Splatoon Raiders at 2.42 million, Fire Emblem Fortune’s Weave at 1.34 million, and Tomodachi Life: Living the Dream at 8.81 million.
The other pillar is IP-related income. Thanks to The Super Mario Galaxy Movie, that line came in at $410 million (up 87.9%). On top of that, a refund of U.S. IEEPA tariffs received in the first quarter gave operating profit a lift. The full-year forecast is unchanged from the figures released in May, and the interim dividend has been set at $0.50 per share.
This article breaks down the four profit metrics, hardware and software unit sales, the growth in IP and digital, and the full-year outlook and dividend. There are a lot of numbers, so we have put them in tables. A quarter where console sales fall more than 30% and profit rises 50% needs some unpacking. Let’s start there.
- Net sales of $6.31 billion, down 12.1%; operating profit of $1.42 billion, up 49.1%
- Switch 2 sold 6.49 million units for a 26.35 million lifetime total; software hit 24.49 million
- IP-related income of $410 million, digital sales of $1.63 billion
- Full-year forecast held steady; interim dividend of $0.50, year-end $0.56
Let’s start with the income statement.
*Yen amounts in this article are converted at ¥153 = US$1 (November 2026 rate).
How did Nintendo’s first half go? Sales down 12.1%, operating profit up 49.1%
Net sales of $6.31 billion, operating profit of $1.42 billion, ordinary profit of $1.96 billion, and interim profit attributable to owners of the parent of $1.44 billion. Sales fell, but all four profit metrics climbed.
| Metric (April-September 2026) | Amount | Year Over Year |
|---|---|---|
| Net sales | $6.31 billion | Down 12.1% |
| Operating profit | $1.42 billion | Up 49.1% |
| Ordinary profit | $1.96 billion | Up 27.4% |
| Interim net profit | $1.44 billion | Up 11.0% |
| Overseas share of net sales | 78.9% ($4.98 billion) | — |
The reason for the lower-revenue, higher-profit split is spelled out in the earnings release.
Although net sales decreased year over year due to the decline in hardware unit sales, operating profit reached $1.42 billion (up 49.1% year over year), driven by solid software sales and the resulting increase in software’s share of net sales, as well as by the refund received in the first quarter of tariffs based on the U.S. IEEPA that had been recorded in cost of sales.
Source:Nintendo consolidated financial results for the second quarter (interim period) of the fiscal year ending March 2027
So there are two reasons: a higher mix of high-margin software, and the tariff refund. Reporting from 4Gamer and gamebiz puts the refund at roughly 300 million U.S. dollars, while the release only states that it was “received in the first quarter.” Because a one-time factor is baked in, it is too early to read that 49.1% jump as the company’s underlying strength. Ordinary profit also includes $397 million in equity-method investment gains and $175 million in interest income.
How many Switch 2 units sold? 6.49 million in the half, 26.35 million lifetime, with 24.49 million games
Switch 2 hardware sold 6.49 million units, down 37.4% year over year. The year-ago period covered the weeks right after the June 2025 launch, so the comparison is against the peak of the rollout. Lifetime sales now stand at 26.35 million. Switch sold 1.27 million units (down 32.7%) for a lifetime total of 157.2 million.
On software, Switch 2 titles sold 24.49 million units, up 18.8%, and Switch titles sold 65.73 million, up 6.8%. Because Switch 2 plays Switch games, last-generation titles are still selling today.
| Title (Release Month) | Platform | Units Sold |
|---|---|---|
| Tomodachi Life: Living the Dream (April) | Switch | 8.81 million |
| Rhythm Heaven Miracle Stars (July) | Switch | 2.89 million |
| Splatoon Raiders (July) | Switch 2 | 2.42 million |
| Fire Emblem Fortune’s Weave (September) | Switch 2 | 1.34 million |
| Star Fox (June) | Switch 2 | 1.17 million |
| Mario Kart World (released in a prior period) | Switch 2 | 1.78 million in the half, 16.48 million lifetime |
Tomodachi Life’s 8.81 million is the biggest Switch number of the fiscal year so far. Splatoon Raiders, which plenty of people pegged as a Switch 2 killer app, landed at 2.42 million, a modest figure next to Splatoon 3’s opening. Mario Kart World, meanwhile, is at 16.48 million lifetime, which works out to an attach rate above 60% against the 26.35 million Switch 2 consoles out there. Its spot as the default pack-in purchase is not in any danger.
Why did IP-related income grow? $410 million on the Mario movie, with digital sales at $1.63 billion
Net sales from IP-related income and other sources came to $410 million, up 87.9% year over year. The release attributes this to “the large number of customers who saw The Super Mario Galaxy Movie,” among other factors. No breakdown of box office or streaming figures appears in the earnings materials.
Digital sales reached $1.63 billion, up 60.5%. That reflects growth in download versions sold alongside physical copies, and together with the rising software mix it pushed margins higher. These two figures explain how profit can grow even as hardware units fall.
A console company posting higher profit on falling console sales looks strange on paper. But for the Nintendo of today, with film and digital as load-bearing pillars, this shape is becoming the norm.
What about the full-year outlook? Forecast unchanged, 16.5 million Switch 2 units, $0.50 interim dividend
The full-year forecast for the fiscal year ending March 2027 is unchanged from the figures published on May 8, 2026: net sales of $13.4 billion (down 11.4% from the prior year), operating profit of $2.42 billion (up 2.7%), and profit attributable to owners of the parent of $2.03 billion (down 26.9%). The annual sales plan calls for 16.5 million Switch 2 consoles and 60 million Switch 2 games.
| Item | Full-Year Forecast (Unchanged) | First-Half Result and Progress |
|---|---|---|
| Net sales | $13.4 billion | $6.31 billion (47.1%) |
| Operating profit | $2.42 billion | $1.42 billion (58.5%) |
| Switch 2 hardware | 16.5 million units | 6.49 million units (39.3%) |
| Switch 2 software | 60 million units | 24.49 million units (40.8%) |
| Annual dividend | $1.06 per share ($0.50 interim, $0.56 year-end) | Prior year actual was $1.43 |
Operating profit has already covered 58.5% of the full-year forecast in the first half alone. Since that includes the one-time tariff refund, holding the forecast reads as an assumption that margins in the second half will not match the first. Hardware is at 39.3% of plan. The remaining 10 million units are expected to come from the holiday quarter plus the Nintendo Switch 2 The Legend of Zelda 40th Anniversary Edition released in October, The Legend of Zelda: Ocarina of Time in November, and Metroid Ravenous in January.
On dividends, the $0.50 interim payout is locked in and the $1.06 annual forecast is unchanged. That is down from $1.43 last year, but it tracks the forecast decline in net profit, and there is no change to the dividend policy (the higher of 40% of consolidated operating profit or a 60% payout ratio).
Put simply, Nintendo’s first half was a quarter of “hardware is down, but software, film and digital are paying the bills.” The second half comes down to how far Switch 2 hardware can run during the holidays. First-half sales of 6.49 million against a 16.5 million plan also mean the company believes it can move 10 million consoles by year-end.
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Summary: Nintendo’s first-half operating profit rose 49.1% to $1.42 billion, with Switch 2 at 26.35 million lifetime
Nintendo’s second-quarter results for the fiscal year ending March 2027 show net sales of $6.31 billion (down 12.1%), operating profit of $1.42 billion (up 49.1%), ordinary profit of $1.96 billion and interim net profit of $1.44 billion. Switch 2 sold 6.49 million units for a 26.35 million lifetime total, with 24.49 million Switch 2 games sold. IP-related income and other sources hit $410 million (up 87.9%) on the strength of the Mario movie, and digital sales reached $1.63 billion (up 60.5%). The full-year forecast stands pat at $13.4 billion in net sales, $2.42 billion in operating profit and 16.5 million Switch 2 consoles, with an interim dividend of $0.50 per share and a $1.06 annual forecast.
Hardware fell 37.4% and operating profit still rose 49.1%. Even after backing out the one-time tariff refund, the numbers show a company that now makes its money on software mix, digital and movies. The thing worth watching is that 39.3% first-half progress against a 16.5 million annual Switch 2 target, which hands 10 million units to the holiday quarter. The Zelda 40th Anniversary console, Ocarina of Time and January’s Metroid are the cards riding on that bet.
Mario Kart World’s attach rate is over 60%. People who bought the console are actually playing it.
Featured image from the official Nintendo page. ©Nintendo
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