Nintendo Reports Q3 Revenue of $5.2B, Below Estimates, But Maintains Switch 2 Sales Forecast

Nintendo reported third-quarter revenue of $5.2 billion, falling short of analyst estimates of $5.45 billion, but the gaming giant posted a stronger-than-expected net profit of $1.03 billion compared to the $950 million estimate.

The results, released Tuesday, show Nintendo maintaining its full-year Switch 2 sales forecast of 19 million units for fiscal 2026, allaying some fears that the flagship console was losing momentum. This forecast suggests Nintendo remains confident in its next-generation hardware despite the revenue miss.

The Switch 2, Nintendo's highly anticipated successor to the original Switch, has been positioned as a key growth driver for the company. The maintained sales forecast indicates Nintendo believes demand will remain strong throughout the fiscal year, even as the gaming industry faces broader economic headwinds.

In related news, Nintendo announced that the original Switch has become its best-selling console ever, with 155.37 million units sold as of December 31 since its 2017 launch. This figure surpasses the Nintendo DS's 154.02 million units, marking a significant milestone for the company.

The Q3 results come amid a challenging period for the gaming industry, with many companies adjusting expectations due to economic uncertainty and shifting consumer spending patterns. Nintendo's ability to maintain its Switch 2 forecast while missing revenue targets suggests the company is balancing near-term pressures with long-term strategic confidence.

Investors appeared to respond positively to the maintained forecast, viewing it as a signal of Nintendo's underlying strength in the competitive gaming market. The company's profitability, even with the revenue miss, demonstrates its ability to manage costs and maintain margins in a challenging environment.

As Nintendo continues to prepare for the Switch 2 launch and expansion, the maintained sales forecast will be closely watched by industry analysts as a key indicator of the company's growth trajectory in the coming fiscal year.