Honda reported nine-month EPS of ¥115.53 ($0.76/ADS for Q3), beating the Zacks Consensus Estimate of $0.52 by 90.2%. Revenue totaled ¥15.97 trillion ($34.7B for Q3 alone), down 2.2% YoY. Operating profit plunged 48.1% to ¥591.5 billion, dragged by ¥267.1 billion in one-time EV-related charges and ¥289.8 billion in tariff impacts. Shares fell 3.2% to $31.76 on February 10, 2026, following the release.
About Honda Motor Co., Ltd.
Honda Motor Co., Ltd. (NYSE: HMC | TSE: 7267) is a global mobility company headquartered in Minato, Tokyo, Japan, founded in 1948 by Soichiro Honda and Takeo Fujisawa. The company designs, manufactures, and sells automobiles, motorcycles, power products, and engines, and also operates in aviation through Honda Aircraft Company and financial services that support vehicle sales and leasing.
Honda’s current market capitalization stands at approximately $39.6 billion (as of mid-February 2026). The stock trades with a trailing P/E ratio of ~6.88, reflecting the significant earnings compression from EV-related charges and tariff impacts. Honda’s trailing dividend yield is approximately 4.45%, with a full-year dividend forecast of ¥70 per share (¥35 interim + ¥35 year-end). The company had 5.28 billion shares issued, with 1.39 billion held as treasury stock as of December 31, 2025, resulting in approximately 3.89 billion shares outstanding. Honda employs over 200,000 people worldwide across its motorcycle, automobile, financial services, and power products segments.
Top Financial Highlights
- Sales Revenue (9M): ¥15,975.6 billion (down 2.2% YoY from ¥16,328.7 billion).
- Q3 Standalone Revenue: ~¥5.4 trillion ($34.7 billion), down from $36.3 billion a year ago.
- Operating Profit (9M): ¥591.5 billion (down 48.1% YoY from ¥1,139.9 billion).
- Net Income (9M): ¥465.4 billion (down 42.2% YoY from ¥805.2 billion).
- EPS (9M): ¥115.53 (down from ¥169.69 YoY); Q3 ADS EPS: $0.76 vs. $0.52 consensus estimate — a 90.2% beat.
- Operating Margin (9M): 3.7%, down 3.3 percentage points from 7.0%.
- Motorcycle Segment Operating Profit (9M): ¥546.5 billion (operating margin 18.6%) — record highs in unit sales, profit, and margin.
- Automobile Segment Operating Loss (9M): ¥166.4 billion (operating margin -1.6%), vs. profit of ¥402.6 billion a year ago.
- Financial Services Operating Profit (9M): ¥218.0 billion.
- Operating Cash Flows after R&D Adjustment: ¥1,855.8 billion (roughly in line with prior year).
- Free Cash Flow (ex-Financial Services): ¥917.4 billion.
- Net Cash at End of Period: ¥3,170.7 billion.
- Cash and Cash Equivalents: ¥4,846.5 billion ($31B).
- Tariff Impact Reduced: From initial estimate of ¥450 billion to ¥310 billion through supplier collaboration and USMCA compliance.
- FY2026 Full-Year Guidance (Maintained): Operating Profit ¥550.0 billion; Net Income ¥300.0 billion; EPS ¥75.05.
Beat or Miss?
| Metric | Reported | Estimated/ Consensus | Difference/ Analysis |
| Q3 EPS (ADS) | $0.76 | $0.52 (Zacks) | +$0.24 / Beat by 90.2% |
| Q3 Revenue | $34.7 billion | ~$36.3 billion (prior year) | Revenue declined YoY |
| 9M Operating Profit | ¥591.5 billion | N/A (guidance: ¥550B full-year) | Tracking above full-year target at 9M |
| FY2026 EPS Guidance | ¥75.05 (≈$1.46 ADS) | ~$3.38 (street consensus) | Sharp guidance cut — well below expectations |
| FY2026 Revenue Guidance | ¥21.1 trillion (~$137B) | ~$131.8 billion (consensus) | Revenue guidance above consensus |
| Dividend | ¥70/share | ¥70/share | Maintained, in line |
The quarter delivered a significant EPS beat against the Zacks consensus, primarily driven by the motorcycle segment’s record performance. However, the sharp cut in full-year EPS guidance to ¥75.05 (approximately $1.46 per ADS) — far below the street consensus of ~$3.38 — signaled that management expects continued pressure from EV-related charges, tariffs, and competitive dynamics in Q4.
What Leadership Is Saying?
CEO Toshihiro Mibe: “We are repositioning hybrid vehicles as a bridge to full electrification, and we are accelerating production in the U.S. to mitigate tariff impacts.” –
CFO Eiji Fujimura: “Cost discipline remains a priority, and we are tightening our operating model to support the hybrid rollout.” He added that the full-year outlook still faced “potential downside risks from remaining losses tied to Honda’s U.S. EV business.”
Management also discussed a “fundamental review” of Honda’s EV strategy. On China, executives stated: “We have to go back to scratch and rebuild our strategies for EV… we do not have the established image of the business in the EV area over there.” On the Nissan alliance, management noted: “We do not talk about integration at all now… we continue to discuss with Nissan on development costs, software, E&E architecture.”
Historical Performance
Honda YoY Comparison
Nine-Month Results (April–December)
| Category | 9M FY2026 (Apr–Dec 2025) | 9M FY2025 (Apr–Dec 2024) | Change (%) |
| Sales Revenue | ¥15,975.6B | ¥16,328.7B | -2.2% |
| Operating Profit | ¥591.5B | ¥1,139.9B | -48.1% |
| Net Income | ¥465.4B | ¥805.2B | -42.2% |
| EPS (Basic) | ¥115.53 | ¥169.69 | -31.9% |
| Operating Margin | 3.70% | 7.00% | -3.3 pts |
| R&D Expenses | ¥905.8B | ¥746.2B | +21.4% |
| Cost of Sales | ¥12,744.6B | ¥12,802.7B | -0.50% |
Q3 Standalone Segment Breakdown
| Segment | Q3 FY2026 Revenue | Q3 FY2025 Revenue | Revenue Change | Q3 FY2026 OP | Q3 FY2025 OP |
| Motorcycle | ¥1.01T | ¥893B | 13.10% | ¥178.3B | ¥180.6B |
| Automobile | ¥3.43T | ¥3.76T | -8.80% | (¥93.4B) | ¥144.6B |
| Financial Services | ¥879B | ¥849B | 3.50% | ¥74.8B | ¥82.3B |
| Power Products & Other | ¥97.5B | ¥98.1B | -0.60% | (¥6.3B) | (¥5.4B) |
Competitor YoY Comparison (9-Month Results)
Toyota Motor Corporation (TSE: 7203 | NYSE: TM) — 9M FY2026 vs 9M FY2025
| Category | 9M FY2026 (Apr–Dec 2025) | 9M FY2025 (Apr–Dec 2024) | Change (%) |
| Sales Revenue | ¥38,087.6B | ¥35,673.6B | +6.8% |
| Operating Income | ¥3,196.7B | ¥3,679.4B | -13.1% |
| Net Income | ¥3,030.8B | ¥4,100.2B | -26.1% |
| Full-Year OP Guidance | ¥3,800.0B | ¥4,795.5B (actual FY2025) | -20.7% |
Toyota saw revenue growth of 6.8% driven by higher vehicle volumes (+4.3%) but suffered a 13.1% decline in operating income due to higher expenses and an estimated ¥1,200 billion tariff impact for the first nine months. Toyota’s full-year operating income forecast of ¥3,800 billion implies a 20.7% YoY contraction.
Nissan Motor Co., Ltd. (TSE: 7201) — 9M FY2025 (Nissan’s fiscal year ends March)
| Category | 9M FY2025 (Apr–Dec 2025) | 9M FY2024 (Apr–Dec 2024) | Change |
| Net Revenue | ¥8,580B | ~¥9,100B (est.) | -5.7% |
| Operating Profit/(Loss) | (¥10.1B) | Positive (prior year) | Swing to loss |
| Q3 Standalone OP | ¥17.5B | Loss (prior Q3) | Turnaround |
| Revised FY OP Guidance | (¥60B) | (¥275B) prior estimate | Improved by ¥215B |
Nissan reported a net loss of ¥250 billion for the nine-month period but achieved a Q3 standalone operating profit of ¥17.5 billion, a turnaround from losses earlier in the year. The company upgraded its full-year operating loss forecast to ¥60 billion from ¥275 billion, reflecting progress on its Re:Nissan restructuring plan and ¥160 billion in fixed cost savings achieved. Global sales declined 5.8% YoY to 2.26 million units.
Peer Comparison Summary
| Metric | Honda (9M FY2026) | Toyota (9M FY2026) | Nissan (9M FY2025) |
| Revenue Trend | -2.2% | +6.8% | -5.7% |
| Operating Profit | ¥591.5B | ¥3,196.7B | (¥10.1B) |
| OP YoY Change | -48.1% | -13.1% | Swing to loss |
| Key Headwind | EV charges + Tariffs | Tariffs + Expenses | Restructuring + Tariffs |
Among Japan’s Big Three automakers, Toyota demonstrated the most resilient top-line performance with 6.8% revenue growth, though even Toyota’s operating income fell 13.1% under tariff pressure. Honda was hit hardest in absolute terms due to the combination of massive one-time EV write-downs (¥267.1B) and tariffs (¥289.8B). Nissan remains the weakest, posting a nine-month operating loss, though its Q3 turnaround to profitability and significantly improved full-year guidance are encouraging.
How the Market Reacted
Honda shares fell 3.2% to $31.76 on February 10, 2026, following the earnings release, down from $32.82 at the prior close. The stock traded near the lower end of its 52-week range of $24.56–$34.89. The day after (February 11), shares rebounded 3.81% to $32.40, suggesting investors digested the maintained guidance and improved tariff outlook more favorably. The overall sentiment was cautiously bearish: while the EPS beat provided a short-term positive, the dramatic 64.1% decline in full-year net income guidance to ¥300 billion and the ongoing uncertainty around EV strategy, GM partnership negotiations, and intensifying competition in Asia weighed heavily on investor confidence. The cancellation of 747 million treasury shares (14.1% of issued shares) and the maintained ¥70/share dividend offered some shareholder return support.
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