Nintendo shares rise as much as 6.8% after 1Q profit beat

Nintendo shares rise as much as 6.8% after 1Q profit beat

Nintendo shares (OTCMKTS:NTDOY) surged by as much as 6.8% on July 2, 2025, following the release of the company's 1Q 2026 earnings report. The stock reached an intraday high of $24.09, marking a 40% increase year-to-date, driven by strong sales of the Switch 2 console.

The quarterly earnings report revealed that Nintendo's Switch 2 console sold 5.82 million units, significantly outperforming expectations. The company's revenue for the quarter ending June 30, 2025, totaled 572.3 billion Japanese yen ($3.8 billion), a 132% year-over-year increase. Operating profit came in at 56.9 billion yen, surpassing the expected 53.46 billion yen [2].

Analysts have been bullish on Nintendo, with several firms upgrading their ratings. Wedbush analysts raised their Q1 2026 earnings estimate to $0.09 per share, up from $0.07, maintaining a "Strong-Buy" rating [1]. Citigroup and Benchmark also issued positive ratings, contributing to an average rating of "Buy" [1].

Nintendo's Switch 2 console has been a major driver of growth, with sales exceeding expectations. The company expects to sell 15 million units in the current fiscal year, although analysts predict this target could be conservative. Despite the strong performance, Nintendo maintained its revenue and operating profit guidance for the fiscal year ending March 2026 [2].

Investors should continue to monitor Nintendo's earnings reports and analyst ratings for further insights into the company's growth prospects. The stock's recent performance underscores the market's enthusiasm for Nintendo's Switch 2 console and the company's overall strategy.

References:
[1] https://www.marketbeat.com/instant-alerts/research-analysts-offer-predictions-for-nintendo-q1-earnings-2025-07-30/
[2] https://www.cnbc.com/2025/08/01/nintendo-earnings-q1-2025.html