Nintendo's latest quarterly financial report shows the company enjoying a strong start to its 2026 fiscal year, boosted by the box-office success of The Super Mario Galaxy Movie and a substantial US tariff refund. While hardware sales for both the Switch and Switch 2 fell by around 31–34% year-on-year, this is largely because the comparison period included the Switch 2's launch week spike, and underlying demand for both consoles remains robust. The results underline that Nintendo's ageing original Switch and its newer successor continue to sell strongly nine years and one year into their respective lifespans, while software and IP-related income are driving profit growth.

In the quarter, 3.82 million Switch 2 units were sold, taking the console's lifetime total past 23.68 million and overtaking the GameCube, while the original Switch still shifted over 660,000 units. Software sales grew faster than hardware, up 9.2% for Switch 2 titles and 38.6% for original Switch titles, with digital sales rising 90% even as physical cartridges still make up 40% of game sales, suggesting Nintendo is unlikely to follow Sony in ending disc production. Profits were further lifted by a $300 million US tariff refund following a Supreme Court ruling, which drove a 150% profit increase, alongside a 107.4% rise in IP-related income thanks to the Mario Galaxy film's $1 billion-plus box office take, with Nintendo now eyeing similar success from an upcoming Zelda live-action movie.