Summary

• Nintendo delivered record-breaking Switch 2 hardware and software sales, surpassing revised forecasts and cementing its market leadership.
• Nintendo projects lower Switch 2 sales and software units for FY2027 due to economic volatility and a $50 price increase.
• Robust cash reserves of $13.97B and minimal debt provide flexibility for innovation, dividends, and resilience against rising DRAM costs.
• We change our rating to BUY, recognizing long-term upside from expanding IP monetization, films, and parks, despite near-term headwinds and market uncertainty.

This article was co-produced by Jeff Hopkins.

Introduction

On May 8th, Nintendo (NTDOY) released its financial report for fiscal year 2026, which ended on March 31st. The Nintendo Switch 2 broke the industry record for

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of NTDOY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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