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Nintendo Co., Ltd. 7974

TokyoConsumer electronicsFinancials to Jun 30, 2026 · Updated Oct 4, 2026

On Stock Analysis · affiliate link
7974 financials
Moat score
86
ROIC
35.8%
Fiscal 2026
P/E
19.0
EV/EBIT
15.3
FCF yield
2.9%
12 months to Mar 31, 2026
Dividend yield
1.6%
12 months to Mar 31, 2026
Market cap
¥9.05T

Moat ranks

Score rankTied #73 of 396
Durabilitydurable
Market structureOligopoly
Pricing powermoderate

Balance sheet

3/31/26
¥BMar '25Mar '26
Cash1,414.11,316.7
Securities644.1900.2
Debt0.00.0
Net cash2,058.22,216.9
Equity2,724.32,954.0
Leverage
Debt / EBITDA
0.00×
Debt / equity
0.00×
Leases (3/31/26)
¥7.5B
Capital
Diluted shares
1,153M
Book value / share
¥2,562.41
Price / book
3.1×
Net cash / share
¥1,922.97
Market cap
¥9.05T
Enterprise value
¥6.83T

Per-share record

Fiscal years and TTM
Scale
¥0¥500¥1,000¥1,500¥2,000'17'18'19'20'21'22'23'24'251,988.27'261,959.10TTM
Revenue per shareCash flow per share

Key indicators

Latest: Q1 '27
IndicatorLatestVs year agoLast 8 quarters
Revenue growth-9.5%-141.6 pts
Operating margin27.5%+17.6 pts
FCF margin–––
Capex / revenue–––
Annual playing users130.0M0%
Switch 2 hardware units3.8M-34%
Switch 2 software units9.5M+9%
Switch software units33.8M+39%
Digital software sales¥132.7B+90%

Margins and growth from reported quarters; company KPIs as reported in results releases.

About 7974

Nintendo sells consoles and games built around protected franchises and a trusted family brand. Backward compatibility and broader third-party support are widening the Switch 2 ecosystem; annual playing users held at 130m.

Revenue mix
Dedicated video game platforms 93.3%IP-related income, etc. 6.7%
  • Ecosystem Complements

    Nintendo runs an integrated hardware-software platform across Switch and Switch 2.

  • Brand Trust

    Nintendo's family-friendly positioning and characters cultivated across generations support trust and repeat demand.

  • IP Choke Point

    Nintendo controls Mario, Zelda and other protected franchises, giving its consoles games rivals cannot simply copy.

  • Content Rights Currency

    Nintendo earns from protected characters through licensing, merchandise, mobile content and films.

Timeline
  1. Mar 31, 2026 · Legal charge −¥6.4B

    The annual income statement reports a litigation loss. This is a legal charge outside platform operating profit; the disclosed amount covers the fiscal year.

  2. Jun 30, 2025 · Gain +¥32.3B

    Sale of investment securities lifted pretax profit. It does not reflect demand for Nintendo hardware or games.

Ownership

To 10/4/26
CEO
Shuntaro Furukawa
Since 2018 · 8 yrs
Professional CEOSingle share class
Insider trades0
Planned sales0

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Financial record

Fiscal year2017201820192020202120222023202420252026TTMTrendChange 2017–26
Per share (¥)
Revenue407.14879.02999.711,098.451,476.551,436.191,374.581,436.021,000.581,988.271,959.10+19.3%/yr
Cash flow15.90126.74142.00291.93513.84245.38277.07396.9110.37249.10–+35.8%/yr
Earnings85.39116.23161.55217.12403.26404.67371.41421.39239.47364.51412.42+17.5%/yr
Free cash flow7.19118.74133.06283.66507.96238.96258.02383.06-5.96225.75–+46.7%/yr
Capex8.718.008.948.265.896.4319.0413.8516.3323.35–+11.6%/yr
Dividends11.9753.9864.9390.94162.87203.79204.86202.91165.94127.10–+30.0%/yr
Book value1,041.261,098.301,173.871,293.351,573.471,752.761,944.912,236.462,339.992,539.242,530.94+10.4%/yr
Diluted shares (M)1,2011,2011,2011,1911,1911,1801,1651,1641,1641,1631,153-0.4%/yr
Totals (¥B)
Revenue489.11,055.71,200.61,308.51,758.91,695.31,601.71,671.91,164.92,313.12,258.5+18.8%/yr
Operating income29.4177.6249.7352.4640.6592.8504.4528.9282.6360.1445.8+32.1%/yr
Net income102.6139.6194.0258.6480.4477.7432.8490.6278.8424.1475.4+17.1%/yr
Free cash flow8.6142.6159.8337.9605.1282.1300.7446.0-6.9262.6–+46.1%/yr
Buybacks0.00.131.00.00.195.450.7–0.099.9–+139.9%/yr
Dividends14.464.878.0108.3194.0240.6238.7236.2193.2147.9–+29.6%/yr
Net cash946.1988.01,083.01,216.81,742.41,710.91,879.22,252.72,058.22,216.9–+¥1,270.8B
Margins & returns (%)
Gross margin40.738.241.749.055.255.855.357.161.039.344.5-1.4 pts
Operating margin6.016.820.826.936.435.031.531.624.315.619.7+9.6 pts
Net margin21.013.216.219.827.328.227.029.323.918.321.1-2.6 pts
FCF margin1.813.513.325.834.416.618.826.7-0.611.4–+9.6 pts
ROIC7.139.355.979.6–121.195.4110.331.035.8–+28.7 pts
Return on equity8.210.613.816.825.623.119.118.810.214.416.3+6.2 pts
R&D % of revenue12.16.15.86.45.36.06.98.212.37.78.3-4.4 pts
Capex % of revenue2.10.90.90.80.40.41.41.01.61.2–-1.0 pts

Change uses 2017 and 2026 only: compound annual growth for amounts, points for margins and returns, and the change in amount for net cash. A dash means no 2017 base. Trend shows the fiscal years.

TTM = four quarters to Jun 30, 2026. Per-share values use diluted weighted shares.ROIC = operating income × (1 − 26.8% tax rate, the company's own over three fiscal years excluding one-offs) ÷ (equity + debt − cash and current securities). Returns show a dash when their base is negative or under 10% of revenue. Free cash flow = operating cash flow − capex. Debt is all borrowings; net cash counts long-term securities and excludes leases.

Moat

Moat scorecard

Moat score86
Strength
Confidence
Structure
Oligopoly
Durability
durable
Trajectory
widening
Pricing power
moderate
Segments
  • Dedicated video game platforms93.3%
    3 claims
  • IP-related income, etc.6.7%
    1 claim

Moat claims

Applies to
Dedicated video game platforms
Confidence
Durability
durable
Trajectory
wideningas of Oct 4, 2026
Why it holds

Nintendo runs an integrated hardware-software platform across Switch and Switch 2. Backward compatibility preserved the older catalog, 130 million annual playing users sustained engagement, and the second-year third-party pipeline is broader than Switch had at the same stage.

Why widening

Backward compatibility keeps the older library useful while Switch 2 gains a broader third-party lineup. Annual playing users held at 130m and both generations sold more software in Q1; announced releases must still reach paying players.

Indicators
  • Annual playing users130,000,0000%
  • Switch 2 hardware units3,820,000-34%
  • Switch 2 software units9,460,000+9%
  • Switch software units33,810,000+39%
  • Digital software sales¥132.7B+90%
  • Digital share of software sales61.5%+2.2 pts
Risks
  • Platform transition risk (new hardware cycle)
  • Third-party content supply shifts to rival platforms
  • Consumer time shifts to PC/mobile/cloud gaming
  • Regulatory pressure on digital storefront practices

Profile change log

  1. Oct 4, 2026 · analyst revision

    Added shared console and entertainment IP market profiles covering leaders, cycle, rates, currency, input costs, regulation and consumer demand. Software-spending and licensed-retail estimates are shown as narrower reference markets, without invented platform or IP-owner market shares.

  2. Oct 4, 2026 · analyst revision

    Added ten years of annual figures, twelve quarters, six half-years and eight operating measures. Restated historical shares for the 2022 split, used the recast IP sales category and separated cash equivalents, borrowing principal and leases. Added the investment-sale gain, litigation loss, guidance, filing history and October 2 market value; kept undisclosed items missing.

  3. Oct 4, 2026 · business change

    Added moat trajectories: the Switch 2 ecosystem is widening with backward compatibility and the September game lineup; brand, franchise rights and cross-media income remain stable. Added the investment debate and the November 5 results checkpoint.

  4. Oct 4, 2026 · analyst revision

    Corrected Q1 sales-category shares using JPY483,009m and JPY34,803m over JPY517,813m, replacing ratios based on rounded billions. Linked the console and entertainment IP markets; kept Communication Services and Consumer electronics because consoles and their software remain the primary business.

  5. Oct 4, 2026 · analyst revision

    Verified all four moat claims and kept their strength and confidence at 4. Added evidence and risks, including shared Pokémon ownership, tariff-refund effects and the difference between film box office and Nintendo income; clarified suppliers, sales-category boundaries, summary and management.

Industry & peers

Peer map

0%10%20%30%40%50%60708090100Moat scoreIndustry median7974MSFTDIS

Hover a point for its values; click a peer to compare. Dashed lines: industry medians.

Global console gaming platforms

As of Oct 6, 2026
OligopolyHigh cyclicality

Dedicated game consoles and the associated software, digital stores, add-on content and online subscriptions sold worldwide. Includes Nintendo Switch, PlayStation and Xbox ecosystems; excludes PC and mobile games except as competing uses of player time and spending.

  1. Sony / PlayStation
  2. Microsoft / Xbox
  3. Nintendo / Switch
2025 leaders, no comparable shares · Newzoo global games revenue 2025 review
StocksMoatGross m.Op. m.
79748644.5%19.7%
Industry median38644.5%19.7%
Sector median178156.7%28.2%
All stocks median3987652.9%19.6%

Moat medians cover every stock. Margin medians count only stocks with collected numbers and need at least three.

Drivers & risks

Demand drivers
  • New hardware and major exclusive games refresh the installed audience; backward compatibility can preserve spending on an older library.
  • More third-party releases give console owners more reasons to stay and developers a larger audience; subscriptions and add-on content extend spending between full-game launches.
  • Higher software and service prices can lift revenue even with slower player growth, if consumers continue buying.
  • Currency has a strong effect on international earnings, but exposure differs by platform. Sony’s dollar sensitivity can benefit from cheaper components while yen appreciation against the euro reduces overseas profit; Nintendo’s mix is different.
  • Rates have a low direct effect on game use and a medium indirect effect through consumer budgets and studio funding. Nintendo has no loans at its latest year-end; Sony carries borrowing costs and funds content and next-generation development.
Risks
  • Console replacement is discretionary: inflation, high hardware prices and weaker household income can delay adoption, while PC and mobile compete for time and budgets.
  • Memory and processor cost inflation, tariffs and supply shortages can compress hardware profit or force price increases that slow adoption.
  • Large releases concentrate spending. A delayed or weak exclusive game can hurt hardware sales and developer support; rival blockbuster releases can capture the same holiday budget.
  • Privacy, child-safety, digital-store competition and IP rules can change monetization. The UK store-pricing case awaits judgment; Sony’s move to digital-only new games can increase scrutiny of consumer choice and resale.
  • Software development spending is committed ahead of uncertain demand; hardware inventories and supplier commitments can absorb cash before a launch.
  • Reported account growth can coexist with weaker playing time. Higher subscription pricing needs sustained usage and content availability to retain payers.

Bulls & bears

Key question · as of Oct 4, 2026

Can Switch 2 turn Nintendo’s 130m playing accounts into sustained software spending and profit after launch comparisons and the tariff refund fade?

Arguments

4 forFaded: weakening or settled4 against

What to watch

  1. 1Annual playing users, with the same trailing-year definition
  2. 2Switch 2 hardware sell-in and retail sell-through
  3. 3Switch and Switch 2 software units, with bundle treatment unchanged
  4. 4Digital software sales and first-party sales share
  5. 5IP-related income across a full release cycle
  6. 6Operating profit after disclosed tariff effects and component costs
  7. 7Inventory cash absorption and operating cash flow

Next check: November 5, 2026 first-half results, confirmed on Nintendo’s IR calendar.

Sources: company filings and dated sources collected for Find My Moat; market cap as of Oct 2, 2026. Not investment advice.

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Moat Score 86/100 by <a href="https://www.findmymoat.com/stocks/XTKS:7974">Find My Moat</a> (as of September 2026)

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