Nintendo reported a 54% year-on-year surge in profit to £693m for the six months ending in June, defying a 9.5% decline in sales to £2.4bn.
The Japanese video game maker attributed the earnings beat to a combination of robust game sales and significant refunds received on US trade tariffs imposed by the Trump administration.
The result exceeded market expectations, highlighting how tariff rebates are reshaping corporate margins for exporters to the United States.
Shares in Nintendo advanced in Tokyo trading following the announcement, as investors digested the positive earnings surprise.
The stock’s movement reflects a broader market reassessment of companies benefiting from tariff relief, a theme that has also supported other multinational exporters.
The company’s ability to maintain profitability despite falling top-line revenue underscores the impact of the tariff refunds on its bottom line.