Tariff refunds and booming software sales drive the growth; Nintendo's Q1 operating profit soared by 150%, crushing expectations, but concerns about hardware costs and sales volumes have emerged.

According to Zhito Finance APP, Nintendo has delivered a surprising performance report for the first complete fiscal year following the launch of the Switch 2. On August 6, the Kyoto gaming giant announced its financial results for the first quarter of fiscal year 2027 (April to June 2026), revealing a net profit of 147.4 billion yen (approximately $934 million), far exceeding analysts' expectations of 77.8 billion yen. Revenue reached 517.8 billion yen, also significantly surpassing the market forecast of 448.8 billion yen. Operating profit surged from 56.9 billion yen in the same period last year to 142.6 billion yen; net profit increased by 53.5% compared to the previous year. Although net sales decreased by 9.5% year-over-year, they significantly exceeded market expectations.