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Hyunsoo Rim

Nintendo beats on Switch 2 console sales as the original Switch becomes the company’s bestselling console ever

Iconic gaming company Nintendo revealed that it sold around 7 million Switch 2 consoles in the third quarter, ended in December, topping analysts’ average estimate for 6.5 million sales and pushing cumulative Switch 2 sales past 17 million, making it the “fastest-selling dedicated video game platform” in Nintendo’s history, per the company.

Separately, the predecessor to the Switch 2 quietly became Nintendo’s bestselling console ever, having now sold 155.4 million units since its launch in 2017, according to The Verge, overtaking the mighty Nintendo DS, released in 2004, which sold 154 million units in total.

Heading into the print, Nintendo’s shares rose modestly in trading in Japan — gains that the stock has broadly held onto in Tuesday’s session, adding 1.8%. The ADRs, listed in the US, which have been impacted by currency volatility between the US dollar and Japanese yen, rose 5.7% on Monday.

For the third quarter, revenue came in at 806.3 billion yen ($5.2 billion), below estimates of 815.7 billion yen. Margins were also a little light, with operating income coming in at 155 billion yen, below estimates for 181 billion yen, per Bloomberg.

Nintendo maintained its full-year revenue and profit guidance, as well as its forecast of 19 million Switch 2 unit sales for the fiscal year ending March 2026.

The gaming giant’s shares had hit a record high last summer following the Switch 2’s launch, but are now down ~35% from that peak, with the company’s profitability weighed down by tariffs and rising memory chip costs — a key component in its consoles — as chipmakers prioritize more profitable demand from AI data centers.

Still, higher chip prices “will not have a significant impact in the third and fourth quarter performance,” though a prolonged price surge could “put pressure on earnings,” President Shuntaro Furukawa said on the earnings call.

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Luke Kawa

Arm Holdings surges after reporting a doubling of demand for its AI CPUs since late March

Arm Holdings is jumping in postmarket trading despite posting a relatively ho-hum set of fiscal Q4 2026 results and Q1 2027 guidance.

The reason: a deluge of demand for its data center CPUs, which were launched in late March.

“We now have more than $2 billion of customer demand across fiscal 2027 and fiscal 2028, more than double what we stated at launch,” according to the press release. “Soon the data center will be Arm’s largest business.”

The company says it already has 50% market share for CPU compute among top hyperscalers.

AMD’s results showed just how central CPUs are to the AI boom, and Arm’s comments are underlining that message in bold.

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Matt Phillips

FanDuel parent Flutter rises after reporting better-than-expected Q1 sales and earnings

Flutter Entertainment rose in aftermarket trading Wednesday after reporting better-than-expected Q1 earnings and revenue. The rally recouped losses during regular trading hours that followed a CNBC report on the departure of Amy Howe, the CEO of Flutter’s FanDuel sports betting unit.

Flutter reported:

  • Q1 revenue of $4.30 billion vs. Wall Street expectations for $4.24 billion.

  • Adjusted earnings per share of $1.22 vs. the $1.09 forecast, per FactSet.

  • Adjusted EBITDA of $631 million vs. expectations for $610.9 million.

  • Full-year sales guidance of $18.31 billion at the midpoint vs. its previous estimate of $18.40 billion and analyst expectations for $18.35 billion.

  • Full-year adjusted EBITDA guidance of $2.865 billion vs. its previous midpoint estimate of $2.97 billion.

While FanDuel is the leader in the US online sports betting market, it’s considered something of a laggard in prediction markets, an area of fast growth for the industry, in part because it’s exposed to relatively lighter regulation.

(For instance, in most states, gaming commissions limit sports betting to those 21 and older, whereas sports-based events contracts typically have lower age restrictions, thus expanding their potential universe of customers.)

Flutter’s inability to come up with a prediction markets product that investors find convincing has contributed to its falling share price, which is down roughly 50% since the start of the year. Rival DraftKings is down a relatively better 30% over that period.

markets
Paige Oamek

Axon beats Q1 revenue expectations, raises guidance

It might be a great time to be a surveillance company. Axon, a maker of police body cameras, Tasers, and AI intelligence tools, is ticking lower postmarket after the company reported revenue exceeding expectations in its Q1 earnings report and upbeat guidance for the year. 

Here are the numbers:

  • Revenue of $807.3 million (compared to analyst estimates of $779.2 million).

  • Adjusted EBITDA of $202 million (estimate: $183.8 million).

For the full year, Axon boosted its target for revenue growth to a range of 30% to 32%, up from a quarter ago, when it forecast 27% to 30% growth.

Previously, the stock had been sliding despite increasing revenue. It was trading down more than 32% since the beginning of the year, suffering the same fate as many software-as-a-service stocks thanks to AI-related anxieties. 

But for the year ahead, Axon says the company entered the year with “strong momentum, delivering record quarterly revenue,” marking its ninth consecutive quarter of more than 30% growth thanks to its suite of technologies, including artificial intelligence and counter-drone offensive products.

Axon told investors it’s targeting $6 billion in annual revenue by 2028, which would be more than double 2025’s results. The company plans to get there by growing globally (Axon says it’s currently “deployed” in 85 countries) and continuing to partner with federal agencies including the Department of Homeland Security, as well as reaching out to the business community.

The company also noted that the federal government’s Safer Skies Act, passed in December’s National Defense Authorization Act, earmarks $250 million in federal grants for local agencies to further “track and mitigate drone threats.” Again, more good news for Axon, which grew that segment of its business 300% year over year.

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Luke Kawa

Beyond Meat Q2 sales guidance falls short of estimates

Beyond Meat is slipping in postmarket trading after releasing Q1 sales that managed to come in short of low expectations and a Q2 revenue guide below Wall Street’s consensus estimate.

For Q1, the faux meat seller reported:

  • Net revenues of $58.2 million (compared to estimates of $58.5 million and guidance for $57 million to $59 million).

  • Adjusted EBITDA of -$27.8 million (estimate: -$23.8 million).

For Q2, management anticipates sales of $60 million to $65 million, while analysts had penciled in $66.7 million.

Ahead of this earnings report, Beyond bulls were extremely happy that it was taking place as scheduled, touting this as a positive sign. The company had been releasing unscheduled preliminary results and often delaying the formal release of its quarterly report in recent months.

After releasing an underwhelming Q1 sales outlook in March, CEO Ethan Brown blamed the “surround sound of pseudoscientific jargon and positioning and promotion” in American society for the company’s operational struggles.

Back in Q4, a finfluencer who said they owned 4% of Beyond kicked off a wave of retail interest in the name. But when all was said and done, the refinancing efforts that combined with retail optimism to spur a parabolic move in the shares ultimately resulted in the elimination of about $800 million in debt, but also a 60% decline in its stock price.

markets
Luke Kawa

AppLovin soars after Q1 results and Q2 guidance exceed estimates

AppLovin is soaring in postmarket trading after delivering better-than-expected Q1 results with a Q2 outlook to match.

For Q1, the ad tech company reported:

  • Revenue of $1.84 billion (compared to analyst estimates of $1.77 billion and guidance for $1.75 billion to $1.78 billion).

  • Adjusted EBITDA of $1.56 billion (estimate: $1.49 billion, guidance for $1.47 billion to $1.5 billion).

For Q2, management said to expect sales in a range of $1.92 billion to $1.95 billion (estimate: $1.89 billion) with adjusted EBITDA between $1.62 billion and $1.65 billion (estimate: $1.59 billion).

The rise of AI tools as a competitive threat has been overshadowed by AppLovin’s claims of being able to integrate the technology to the betterment of its business as well as the initial rollout of its self-service ad portal in Q4.

As a software company, it faces the existential AI overhang that is common to the space; as an ad tech company, it’s been plagued by fears of Meta taking market share on iOS.

AppLovin is well off its year-to-date lows, but was still down about 30% in 2026 heading into earnings.

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