Nintendo Co., Ltd.

Nintendo's first quarter results for the fiscal year ending March 2027 showed revenue down 9.5 percent year on year to 517.8 billion yen, while operating profit surged 150.5 percent to 142.5 billion yen. A higher proportion of software sales lifted the gross margin sharply from 32.4 percent a year earlier to 54.3 percent, and a US tariff refund also boosted profit. Ordinary profit came to 206.1 billion yen and net profit reached 147.4 billion yen, both up strongly. On August 14, the share price rose nearly 7 percent from the previous day to 8,900 yen.

On the Tokyo stock market on August 14, Nexon hit limit-up proportional allocation after announcing a special dividend of 415 yen per share, while Nintendo also rebounded sharply on reports of its Nintendo Switch 2 expansion into Indonesia. Nexon announced the previous day that it would pay a special dividend of 415 yen per share to shareholders of record as of September 30, 2026, which was taken as a positive surprise by the market. Nintendo was boosted by reports that it would launch the Nintendo Switch 2 and Nintendo Switch in Indonesia in December 2026. Tokai Tokyo Securities maintained its Outperform rating on Capcom and raised its target price from 4,780 yen to 5,090 yen, and Capcom rebounded for the first time in three days, with major home video game stocks generally bought. Meanwhile, Mynet plunged after posting an operating loss of 132 million yen in its second-quarter results, falling into the red, and Sun Electronics also fell sharply, at one point being sold down below the 8,000 yen level.

Nintendo announced on the 12th that it will launch its home game console, the Switch, in Indonesia in December. It will release the Nintendo Switch and Nintendo Switch 2 this December, marking its entry into Southeast Asia's largest economy. Indonesia's Ministry of Creative Economy said in a statement that a subsidiary of Salim Group, one of the country's largest conglomerates, will become the official distributor of the game consoles. According to state news agency Antara, Axton Salim of Salim Group said the subsidiary will work with Nintendo to establish official repair centers and customer service. Local game developers say Nintendo consoles and game software are currently sold mainly through unofficial channels, making pricing opaque. The Indonesian Game Association said last year that the domestic game market is worth about 30 trillion rupiah, or 1.68 billion dollars, annually, making it the largest in Southeast Asia, but domestic developers account for only about 2.5 percent of total spending.

Nintendo shares ended sharply higher, closing at 8,043 yen, up 5.26% from the previous day. The market welcomed the company's first-quarter results for the fiscal year ending March 2027, which showed operating profit surged 150.5% year-on-year to 142.5 billion yen. Revenue fell 9.5% to 517.8 billion yen, but solid software sales, a higher digital ratio, US tariff refunds, and expanding IP-related income contributed to the sharp profit increase. Progress against the full-year operating profit plan of 370 billion yen reached 38.5%.

Major U.S. corporations are claiming billions of dollars in tariff refunds from the government, months after former President Trump floated $2,000 checks for American households that never materialized. Walmart's refund could reach roughly $2.4 billion, Apple's roughly $2.2 billion, Ford's $1.3 billion, Nintendo's $936 million, and Amazon's $600 million, according to company filings and CNBC calculations. About $86 billion has flowed out of the Treasury, roughly half of what's owed, after the Supreme Court struck down the tariffs in February and a trade court ordered refunds. No federal system exists to pass the money to consumers who ultimately paid higher prices, and a proposed $600-per-person rebate bill has stalled in committee since July 2025. Amazon is the rare company offering automatic refunds to some buyers, while Walmart says the money will go toward lower prices without committing to an amount or timeline.

On August 7, the Tokyo stock market saw the Nikkei average extend its decline, ending the day down 76.55 yen at 65,606.71. Among gaming and entertainment stocks, Nintendo extended gains after the previous day's first-quarter results showed operating profit surged 150.5 percent year-on-year, a sharp increase that was well received. Bandai Namco also extended gains, recovering above the 5,000 yen level, after reporting record-high first-quarter results and raising its cumulative second-quarter earnings forecast. MegaChips rose for a seventh straight session after swinging to a profit in the first quarter and announcing a share buyback funded by an upward revision in gains from the sale of SiTime shares. Digital Hearts hit its daily limit up with proportional allocation following an announcement of a tender offer by Sandbox, a company wholly owned by Chairman Miyazawa.

Among individual announcements on August 6, Arisawa Manufacturing revised upward its consolidated earnings forecast for the fiscal year ending March 2027 and raised its annual dividend from the previously planned 98 yen to 110 yen. Nintendo reported consolidated operating profit of 142.596 billion yen for the first quarter of the fiscal year ending March 2027, a 2.5-fold increase year on year, driven by growth in game software sales. Hoshizaki announced a two-for-one stock split effective at the end of December. In addition, Kamei, Kohoku Kogyo, PILLAR, Union Tool, Neturen, and Mitsubishi Materials also revised their earnings plans upward, benefiting from expanding demand related to semiconductors and AI, as well as rising metal prices. Meanwhile, Leader Electronics and Japan Communications each reported a swing to a net loss and a sharp profit decline, respectively, in their first-quarter results.

Nintendo reported first-quarter results that topped revenue and profit estimates, even as Switch 2 console hardware sales fell 34.4% year-over-year to 3.82 million units. Revenue for the quarter ended June 30 came in at 517.8 billion yen, beating analyst expectations of 444.96 billion yen, while net profit rose 53.5% to 147.4 billion yen, surpassing the 78.30 billion yen estimate. Operating profit climbed 150.5% to 142.5 billion yen, aided by roughly $300 million in tariff refunds recorded as a reduction of cost of sales. Software sales for the Switch 2 rose 9.2% to 9.46 million units, and original Switch software jumped 38.6% to 33.81 million units, led by Tomodachi Life: Living the Dream at 7.94 million units. IP-related income more than doubled to 34.8 billion yen, driven by The Super Mario Galaxy Movie surpassing $1 billion in global box office. Nintendo left its full-year outlook unchanged, projecting net sales of 2.05 trillion yen and net profit of 310 billion yen, with Switch 2 hardware expected to reach 16.5 million units, a roughly 17% decline from the prior year.

Nintendo reported a 53.5% jump in profits to ¥147.4 billion for the three months to June, substantially beating expert forecasts of ¥77.8 billion, as earnings were buoyed by a refund on US tariffs. The refund followed a US Supreme Court ruling in February that declared Donald Trump's sweeping trade levies illegal, with the Trump administration refunding about $100 billion of the $165 billion collected. While the Switch 2 console maintained strong sales momentum and popular games performed steadily, overall revenue fell 10% to ¥517.8 billion. Nintendo filed a lawsuit demanding a full refund plus interest, and although a refund appears to have come through, the company has not confirmed the full amount and faces a class action lawsuit from customers claiming it should pass refunds on to consumers.