The Japanese company now forecasts fiscal-year revenue to increase 93% and net profit to climb 25.5%.
Nintendo (OTC:NTDOY, TYO:7974) was downgraded by Wedbush to ‘Neutral' from ‘Outperform,' with analysts stating this reflects expectations that Nintendo's recent gains are already priced in the best-case scenario for Switch 2 hardware and software sales in the coming quarters. The analysts maintained their price target of ¥14,000, slightly above Nintendo's current share price of ¥13,535.
Nintendo Switch 2 achieved a record-breaking launch, selling 5.82 million units in June and easily outpacing initial forecasts. Mario Kart World's stellar attach rate and sales momentum led to my raised forecast of 14 million units sold by fiscal year-end. Nintendo's strong software pipeline, retail expansion, and Donkey Kong IP revitalization position the company for sustained growth.
Nintendo opened the year with 131% sales growth with maintained profitability, driven mainly by Switch 2. Tariffs, inflation, and pricing criticisms are some challenges surrounding the company, but its strong brand recognition remains unfazed. Product compatibility and exclusivity ensure that gamers are still locked in the Nintendo gaming ecosystem.
Nintendo's Switch 2 launch drove a 132% YoY sales surge, but margins compressed due to hardware mix and launch costs — typical for new console cycles. Despite blowout demand, Nintendo maintains conservative guidance, suggesting full-year Switch 2 sales should easily surpass targets, especially with the Christmas quarter ahead. My long-term model forecasts robust free cash flow growth, but at current valuations, Nintendo appears at best fairly valued with a limited margin of safety.
Nintendo is raising the price of its original Switch consoles and other products, effective Aug. 3. The decision was made "based on market conditions," Nintendo said.
Nintendo on Friday said quarterly revenue had more than doubled year-on-year thanks to the Switch 2, which became the world's fastest-selling console after its launch in June.
Sales of Nintendo's new Switch 2 now total 5.82 million units, the company said Friday. In this article 7974.T-JP
Nintendo on Friday said operating profit grew 4% to 56.9 billion yen ($378 million) in the April-June quarter, beating analyst estimates.
Nintendo shares have rallied 46% this year, adding more than $39 billion to the stock's value. The surge has been driven by strong demand for the newly released Switch 2 console.
The hardware improvements in the new $450 Nintendo will make this an automatic upgrade for fans of the two-in-one console.
Parents beware. Christmas came early in 2025 as Nintendo Co., Ltd.