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Jun 30
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Honda Q1 2026 Earnings Report
Honda reported a decline in revenue and profit in Q1 2026 compared to the previous year.
Key Takeaways
Honda’s Q1 2026 earnings showed a significant decline in operating profit and net income, impacted by tariff costs and foreign currency effects, despite strong performance in the motorcycle business.
Net income dropped by over 50% year-over-year to ¥196.67 billion.
Operating profit fell nearly 50% from the same quarter last year.
Revenue slightly declined by 1.2% despite gains in motorcycle sales.
The automobile segment was hit hard by tariffs and EV-related costs.
Honda
Honda
Honda Revenue by Segment
Honda Revenue by Geographic Location
Revenue by Segment
Motorcycle Business Revenue
CapyFin.comAutomobile Business Revenue
CapyFin.comFinancial Services Revenue
CapyFin.comPower Products & Other Revenue
CapyFin.comRevenue by Geographic Location
Japan Revenue
CapyFin.comNorth America Revenue
CapyFin.comEurope Revenue
CapyFin.comAsia Revenue
CapyFin.comOther Regions Revenue
CapyFin.com Forward Guidance
Honda maintained its FY2026 revenue guidance but revised profit expectations upward due to reassessment of tariff and FX impacts.
Positive Outlook
- Operating profit forecast revised upward to ¥700 billion.
- Net income forecast revised up by ¥170 billion to ¥420 billion.
- Tariff impact forecast reduced by ¥200 billion.
- FX assumption updated to 140 yen/USD, favorable for exports.
- Motorcycle and automobile sales in North America expected to remain strong.
Challenges Ahead
- Overall revenue forecast down 2.7% year-over-year.
- Operating margin forecast to decline to 3.3%.
- Continued weakness in financial services segment.
- Declines in automobile sales expected in Asia.
- EV-related expenses continue to pressure profitability.