UBS downgrades Nintendo stock to Sell at JPY 5,500.00

Published on 10/07/2026 at 10:22 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

First-quarter operating profit rose 150.50 percent to JPY 142.50 billion. Nintendo stock costs EUR 43.89 on October 7, 2026 after EUR 43.90.

Nintendo, JP3756600007, Illustration mit AI erstellt.

Nintendo stock (ISIN JP3756600007) was trading at EUR 43.89 at Lang & Schwarz on October 7, 2026 at 10:12 a.m. CEST, down 0.02 percent from the prior close of EUR 43.90. According to FXBus on September 25, 2026, UBS downgraded Nintendo to Sell and set a JPY 5,500.00 price target.

Profit rises as sales contract

Nintendo's first-quarter results for the fiscal year ending March 2027 show the unusual mix behind the debate. According to Note, net sales for April through June 2026 fell 9.50 percent year on year to JPY 517.80 billion, while operating profit rose 150.50 percent to JPY 142.50 billion.

The operating profit margin reached 27.50 percent, compared with 9.90 percent in the prior-year quarter. That gap matters more than the sales decline alone because it shows how product mix and cost effects shaped the quarter.

Switch 2 bundle sets December date

Nintendo and Capcom are adding a concrete software and hardware test for the holiday period. Nintendo said on October 2, 2026 that the Switch 2 and Monster Hunter Wilds bundle arrives on December 4, 2026, including the console, a game download and a three-month Nintendo Switch Online membership.

The first quarter recorded 3.82 million Switch 2 hardware units and 9.46 million Switch 2 software units, according to the same first-quarter review. Nintendo's full-year forecast remains JPY 2.05 trillion in net sales and JPY 370.00 billion in operating profit, while JPY 100.00 billion of cost pressure is built into the outlook for components and tariffs.

Analyst target stays below Tokyo price

UBS's JPY 5,500.00 target sits below the Tokyo listing's JPY 7,775.00 level on October 7, 2026. The contrast reflects the central investor question: whether software demand can sustain profitability after launch effects and tariff-related benefits fade.

Nintendo's primary listing is on the Tokyo Stock Exchange under ticker 7974, and its market capitalization was JPY 9.0 trillion on October 7, 2026. The 52-week range was JPY 6,544.00 to JPY 14,630.00, leaving the reference price below the midpoint of that range.

Next results arrive November 5

Nintendo's investor-relations page lists the six-month earnings release for November 5, 2026. That report should show whether the December bundle and the broader Switch 2 software pipeline are translating into sustained demand rather than a one-quarter margin effect.

At Lang & Schwarz, Nintendo stock was trading at EUR 43.89 on October 7, 2026 at 10:12 a.m. CEST, down 0.02 percent versus the prior close of EUR 43.90. The further course of trading is shown by the continuously updated real-time quote of Nintendo stock.