Nissan Motor Co. saw its shares jump almost 9% on Friday following quarterly results that showed a return to operating profit and a stronger-than-expected gross margin, even as top-line sales trailed analyst consensus.
For the third quarter of the fiscal year ending March (FY3/26), Nissan recorded revenue of 2.99 trillion yen, a 5% decline from the same period a year earlier but a 4% increase from the prior quarter. That revenue figure fell short of the Visible Alpha consensus of 3.15 trillion yen.
Gross profit for the quarter was 387 billion yen, corresponding to a gross margin of 12.9%, which outperformed consensus expectations. The company reported an operating profit of 18 billion yen for the quarter, reversing a prior-quarter operating loss and beating Visible Alpha forecasts that had anticipated an operating loss.
Segment details showed divergent performance across the business. The automotive division produced an operating loss of 74 billion yen, while the financing arm contributed 75 billion yen in operating profit. On a bottom-line basis, Nissan posted a net loss of 28 billion yen for the quarter.
Responding to the results, Macquarie analyst James Hong highlighted several drivers behind the operating-profit surprise, saying the beat "was better than we expected on favourable FX, less negative sales performance, and a one-off gain." Macquarie upgraded its rating on Nissan to Neutral from Underperform and raised its price target by 60% to 400 yen.
Management provided forward-looking guidance that pointed to a fiscal 2026 net loss of 650 billion yen, a projection driven largely by non-cash items related to restructuring. While that net-loss outlook was worse than Macquarie’s pre-quarter estimate, Nissan has narrowed its operating-loss guidance to 60 billion yen from a previous range of 275 billion yen, citing lower costs.
Macquarie noted progress on the company’s restructuring plan, calling out 160 billion yen in fixed-cost reductions and 240 billion yen in variable-cost savings, both ahead of plan. The brokerage highlighted capacity consolidation and variable-cost cuts as contributors to an improved cost structure, and it flagged upcoming new model launches and hybrid introductions as potential supports for a recovery. The analyst also cautioned that risks related to electric vehicle (EV) developments remain.
The quarterly results present a mixed picture: a margin and operating-profit beat that helped calm investors and attracted an analyst upgrade, set against weaker revenue, an automotive division loss, and a sizable planned net loss next fiscal year driven by restructuring accounting items. Market participants will likely be watching how cost cuts, model rollout timing and EV exposure affect the company’s path back to sustained profitability.
Data points:
- Revenue: 2.99 trillion yen (down 5% year on year, up 4% quarter on quarter)
- Visible Alpha revenue consensus: 3.15 trillion yen
- Gross profit: 387 billion yen; gross margin: 12.9%
- Operating profit: 18 billion yen (swing to profit from prior quarter loss)
- Automotive operating profit: -74 billion yen; Financing operating profit: 75 billion yen
- Net profit: -28 billion yen
- Fiscal 2026 net loss guidance: 650 billion yen (mainly non-cash restructuring items)
- Revised operating loss guidance: -60 billion yen (previously -275 billion yen)
- Restructuring savings cited: 160 billion yen fixed-cost cuts; 240 billion yen variable-cost savings