Nintendo stock faces holiday test after Switch 2 slowdown

Published on 11/09/2026 at 09:37 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Nintendo stock enters the holiday season after stronger first-half profit despite slower Switch 2 hardware sales. Annual targets remain unchanged.

Profit resilience meets hardware pressure

Nintendo's first-half profitability improved even as Switch 2 hardware demand weakened.
Software sales and a tariff refund helped offset lower revenue.
The unchanged annual forecast leaves holiday demand central to the investment case.

Nintendo, JP3756600007, Illustration mit AI erstellt.

Nintendo reported stronger first-half profitability despite a slowdown in Switch 2 hardware demand. The results for the six months ended September 30, 2026, published on Thursday, November 5, showed how software and digital sales helped cushion the pressure on console volumes.

According to Markets Insider, first-half revenue fell 12.1 percent to 966.0 billion yen. Operating profit nevertheless rose 49.1 percent to 216.5 billion yen, while net profit increased 11 percent to 220.9 billion yen.

Software offsets weaker hardware demand

Nintendo sold 6.49 million Switch 2 consoles in the first half, below the comparable launch-year figure. In the July-to-September quarter, sales amounted to 2.67 million units, down from 3.82 million in the preceding quarter. The weaker hardware performance coincided with a quarterly net profit miss against analyst expectations.

Software provided a counterweight. Switch 2 software sales reached 24.49 million units, while digital sales rose 60.5 percent to 249.6 billion yen. Nintendo also benefited from a refund of previously recorded US tariffs, which supported operating profit during the period.

Annual targets put holiday demand first

Management left its forecast for the fiscal year ending March 31, 2027, unchanged. Nintendo still targets revenue of 2.05 trillion yen, operating profit of 370.0 billion yen, net profit of 310.0 billion yen and Switch 2 hardware sales of 16.5 million units.

With 6.49 million consoles sold in the first half, the company must deliver a stronger second half to reach its hardware target. The holiday season and the release schedule will therefore be important tests of whether software demand can translate into renewed console momentum.

Nintendo stock traded at 48.47 euros on Lang & Schwarz at 09:33 CET on Monday, November 9, 2026. Investors can follow the real-time quote of Nintendo stock.