US tariff refunds account for a third of Nintendo's Q1 profit surge

Nintendo's Q1 FY2027 operating profit rose 150.5% to $902 million, but roughly $300 million came from US tariff refunds booked as a cost-of-sales reduction. Net sales fell 9.5% year-on-year to 517.8 billion yen. The company is defending a lawsuit alleging it passed tariff costs to consumers through higher Switch prices while retaining the refunds.