Nissan FY2026 Q1 Results: Revenue Rises 9.5% Despite Lower Sales Forecast

Nissan Motor Co Ltd announced its financial results for the first quarter of the fiscal year ending March 2027 (FY2026) on August 3, reporting stronger profitability despite mixed global market conditions. Net revenue increased 9.5% year over year to JPY 2,964.2 billion, while operating profit reached JPY 77.9 billion and net income attributable to owners of the parent totaled JPY 3.8 billion. The company returned to positive consolidated operating profit for the first time in two years, supported by manufacturing efficiencies, lower vehicle costs, disciplined expense management, improved sales performance and favorable foreign exchange movements. One-time gains related to FY2025 U.S. tariffs also contributed to quarterly profitability.

Cost Reduction Program Strengthens Quarterly Performance

Nissan's Re:Nissan transformation program continued to generate measurable benefits during the quarter. The company achieved approximately JPY 60 billion in cost savings, largely through reductions in variable costs. These savings resulted from ongoing improvements across manufacturing operations, purchasing activities, research and development, and other business functions. Nissan stated that disciplined cost management and continuous operational efficiency initiatives remain central to its strategy, enabling the business to strengthen profitability even amid challenging market conditions.

Regional Sales Performance Shows Mixed Trends

Global retail sales declined by 0.9% year over year to 701 thousand units, while global production decreased 4.0% to 646 thousand units. However, regional performance varied significantly. Sales in China increased 7.2% to 130 thousand units, driven by strong demand for the company's new energy vehicles. In Japan, unit sales rose 1.3% to 88 thousand units, supported by customer demand for new products including the Kicks. In United States and North America, retail sales improved as strong demand for the Rogue, Pathfinder and Frontier contributed to a 4.2% regional increase to 328 thousand units, while U.S. market sales climbed 9.6% to 243 thousand units.

Nissan Updates FY2026 Sales and Production Outlook

Despite the improved first-quarter financial performance, Nissan revised its full-year outlook to reflect evolving market conditions. The company lowered its global retail sales forecast from 3,300 thousand units to 3,150 thousand units, which remains broadly in line with the previous fiscal year's level. The revision reflects a weaker outlook for the Chinese market and continuing uncertainty in the Middle East. Nissan also reduced its global production forecast from 2,950 thousand units to 2,800 thousand units while maintaining its full-year earnings forecast for FY2026.

Nissan FY2026 Guidance Revision

Key Highlights from the First Quarter

The first-quarter performance demonstrates Nissan's progress in restoring profitability while continuing to address global market challenges. Key developments include:

• Net revenue increased 9.5% year over year to JPY 2,964.2 billion.
• Operating profit returned to positive territory at JPY 77.9 billion.
• Net income attributable to owners of the parent reached JPY 3.8 billion.
• Re:Nissan delivered approximately JPY 60 billion in quarterly cost savings.
• Sales grew in China, Japan and the U.S. despite a slight decline in global retail volume.
• Full-year sales and production forecasts were revised downward while earnings guidance remained unchanged.

Frequently Asked Questions

What were the major highlights of Nissan's FY2026 first-quarter financial results?
Nissan reported stronger first-quarter financial performance with net revenue rising 9.5% year over year to JPY 2,964.2 billion and operating profit returning to positive territory at JPY 77.9 billion after two years. The company benefited from manufacturing efficiencies, cost reductions under the Re:Nissan program, favorable foreign exchange, stronger regional sales performance and one-time gains related to FY2025 U.S. tariffs. However, it also revised its full-year sales and production forecasts lower due to market uncertainties while maintaining its earnings outlook.

Why did Nissan lower its FY2026 sales and production forecasts?
Nissan reduced its full-year global retail sales forecast from 3.3 million units to 3.15 million units and lowered production guidance from 2.95 million units to 2.8 million units. The company cited a deteriorating outlook for the Chinese automotive market and ongoing uncertainty in the Middle East as the primary reasons for the revisions. Despite these adjustments, Nissan maintained its full-year earnings forecast, reflecting confidence in continued cost reductions and operational improvements.