Earnings quality
Compare earnings and operating cash flow for earnings quality.
Nintendo Co., Ltd.
Ticker 7974 · 🇯🇵 Japan · Consolidated IFRS · amounts in yen
Filed 2026-06-25 · Period end 2026-03-31
Takeaway
Worth trackingSales and operating profit both moved in a healthier direction.
operating margin is 15.6%.
Sales and operating profit moved together — keep watching margins and whether the trend persists next period.
ActionWorth tracking
OP margin15.6%
Equity ratio—
Last price—
Trailing P/E—
Look at next
- Compare operating cash flow to reported profit across the last two years.
- Open English IR for management commentary on outlook and capital allocation.
- Overlay peers on Compare before judging relative momentum.
About the company
Nintendo Co., Ltd. develops and sells dedicated game platforms and software, including hardware such as the Nintendo Switch family and a catalog of first-party franchises sold worldwide.
- game hardware
- game software
- digital content
- character IP
Financial statements
Income statement
| Account | FY2025 (ended Mar 31, 2025) | FY2026 (ended Mar 31, 2026) |
|---|---|---|
| Revenue | ¥1.2T | ¥2.3T |
| Cost of sales* | ¥454.8B | ¥1.4T |
| Gross profit | ¥710.2B | ¥909.0B |
| Operating profit (loss) | ¥282.6B | ¥360.1B |
| Finance income | — | — |
| Finance costs | — | — |
| Income tax expense | ¥93.5B | ¥144.1B |
| Profit (loss) | ¥278.9B | ¥424.1B |
| Profit (loss) attributable to owners | ¥278.8B | ¥424.1B |
| Basic EPS (¥) | — | — |
Balance sheet
| Account | FY2025 (ended Mar 31, 2025) | FY2026 (ended Mar 31, 2026) |
|---|---|---|
| Cash and cash equivalents | ¥1.4T | ¥1.3T |
| Current assets | ¥2.8T | ¥3.0T |
| Non-current assets | ¥646.2B | ¥795.5B |
| Total assets | ¥3.4T | ¥3.8T |
| Short-term borrowings | — | — |
| Current liabilities | ¥597.6B | ¥760.1B |
| Non-current liabilities* | ¥75.4B | ¥90.0B |
| Total liabilities | ¥673.1B | ¥850.1B |
| Equity attributable to owners | — | — |
| Total equity | — | — |
Cash flow statement
| Account | FY2025 (ended Mar 31, 2025) | FY2026 (ended Mar 31, 2026) |
|---|---|---|
| Cash flows from operating activities | ¥12.1B | ¥289.8B |
| Cash flows from investing activities | — | — |
| Cash flows from financing activities | -¥195.1B | -¥249.7B |
| Net increase (decrease) in cash | ¥560.7B | -¥97.4B |
| Cash at end of period | ¥1.4T | ¥1.3T |
Five-year trends
Key metrics
| Metric | Trend | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|
| Revenue | ¥1.7T | ¥1.6T | ¥1.7T | ¥1.2T | ¥2.3T | |
| Operating profit | ¥670.8B | ¥601.1B | ¥680.5B | ¥372.3B | ¥542.2B | |
| Profit to owners | — | — | — | ¥278.8B | ¥424.1B | |
| Total assets | ¥2.7T | ¥2.9T | ¥3.2T | ¥3.4T | ¥3.8T | |
| Cash & equivalents | — | — | ¥853.4B | ¥1.4T | ¥1.3T | |
| Owners’ equity | ¥2.1T | ¥2.3T | ¥2.6T | ¥2.7T | ¥3.0T |
How we read these numbers
From the notes
No material one-offs extracted from this filing.
Constructive
Sales and operating profit both moved in a healthier direction.
On the income statement, revenue moved from ¥1.2T to ¥2.3T (▲ +98.6%), so the top line did not break. Gross profit only slipped from ¥710.2B to ¥909.0B, while operating profit swung from ¥282.6B to ¥360.1B — the damage is concentrated below gross profit.
Cash tells a different story than earnings. Operating cash flow was still ¥289.8B (prior ¥12.1B), and cash on the balance sheet rose to ¥1.3T from ¥1.4T. When profits collapse but operating cash stays positive, read the notes for impairments and other non-cash charges before assuming the business stopped generating cash.
The balance sheet got heavier on leverage. Total liabilities rose to ¥850.1B while owners’ equity fell to —. ROE moved from 10.5% to 14.9%, and the equity ratio from 80.2% to 77.6%. Employee count is 8,666 vs 8,205 a year earlier.
Liquidity & leverage
Short-term borrowing levels look more stable year over year.
Capital buffer
Owners’ equity ratio fell from 80.2% to 77.6%; the balance sheet absorbed a heavy loss year.
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Source: EDINET S100Y9NX
(任天堂株式会社), period end 2026-03-31.