Honda Motor Co. raised its full-year consolidated forecast for the fiscal year ending March 2027 on Wednesday, citing a weaker-than-expected yen and a strong first-quarter performance. The Japanese automaker now expects sales revenue of ¥24,150,000 million ($155.8 billion), operating profit of ¥650,000 million, and net profit attributable to owners of ¥400,000 million.
Why the forecast was raised
The revision, announced on August 5, 2026, replaces the previous guidance issued on May 14, which had called for sales revenue of ¥23,150,000 million, operating profit of ¥500,000 million, and net profit of ¥260,000 million. The key driver: Honda updated its average U.S. dollar-to-yen assumption from 145 to 150 for the full year, reflecting the yen's continued depreciation during the first quarter. A weaker yen boosts the value of Honda's overseas earnings when converted back to yen.
Q1 results: operating profit more than doubles
For the quarter ended June 30, 2026, Honda reported sales revenue of ¥6,061,514 million. Operating profit surged 117.4% year-on-year to ¥530,767 million, while net profit attributable to owners jumped to ¥450,915 million from ¥196,670 million in the same period last year. The strong quarterly performance gave management confidence to lift the full-year outlook.
Market reaction
According to secondary reporting by the Associated Press, investors responded positively to the results and the upgraded guidance. Honda's shares rose in Tokyo trading following the announcement, as the market welcomed the improved profit trajectory and the company's ability to capitalize on favorable currency moves.
The revised forecast implies a more cautious second half, with operating profit expected to moderate from the first-quarter pace. But the ¥150 billion increase in the full-year operating profit target suggests management sees sustained tailwinds from the weaker yen and solid demand in key markets.
Honda's next quarterly results are due in November, when investors will watch for any further changes to currency assumptions or production volumes.
