Nintendo (NTDOY) forecasts 63.1% FY26 sales growth but only 7.6% net profit increase due to tariffs

Nintendo's forecast for fiscal 2026 includes the clouds of the trade war.

Nintendo is out with its latest earnings report, and while the company missed its own FY25 revenue forecast, it does expect to see revenue grow 63.1% in the next twelve months. The company also beat its own FY25 forecast for Operating profit, Ordinary profit, and net profit.

Nintendo expects to sell 15 million units of Switch 2 consoles in FY 2026. While the revenue story is certainly improving at the Big N, tariffs seem to be impacting the bottom line across the board. The 1.9 trillion yen ($13 billion) in sales in the Switch 2's launch year is a stunning number, but Nintendo currently forecasts 13.3% Operating profit growth, 2.1% Ordinary profit growth, and 7.6% Net profit growth. 

While it is not uncommon for Nintendo to be conservative with its financial forecasts, the company did mention that "For the purposes of the financial forecast and hardware and software unit sales forecast for the next fiscal year, U.S. tariff rates effective on April 10, 2025, U.S. Eastern time, are maintained throughout the fiscal year." You can read more in the earnings report.

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At the time of this article, Shacknews primary shareholder Asif A. Khan, his family members, or his company Virtue LLC had the following positions:

Long Nintendo via NTDOY shares