Nissan Motor (7201) Q1 2027 earnings summary

Executive summary

• U.S. sales grew 9.6% YoY and Japan sales increased 1.3% YoY, driven by new model launches, offsetting declines in China and the Middle East.

• Operating profit improved by ¥157 billion YoY to ¥77.9 billion, with net income turning positive at ¥3.8 billion for Q1 FY26.

• Cost reduction initiatives delivered ¥60 billion in Q1 savings, with cumulative savings of ¥315 billion since FY2025.

• Maintained strong liquidity with over ¥2.1 trillion in automotive cash and cash equivalents.

Financial highlights

• Net revenues rose 9.5% YoY to ¥2,964.2 billion, driven by favorable FX and improved product mix.

• Operating profit margin improved to 2.6% from -2.9% YoY.

• Automotive free cash flow was -¥323.9 billion, an improvement from -¥390.5 billion YoY.

• CapEx was ¥127.4 billion and R&D expenses ¥140.3 billion, with increased investment in new product programs.

• Automotive net cash stood at ¥969.2 billion at period end.

Outlook and guidance

• Full-year FY2026 net sales forecast at ¥13,000 billion (+8.3% YoY), operating profit at ¥200 billion, and net income at ¥20 billion; OP margin projected at 1.5%.

• Revised sales volume outlook to 3.15 million units and production to 2.8 million units due to China and Middle East headwinds.

• No changes to previously disclosed forecasts; expect continued raw material and logistics cost pressures, especially in the Middle East.