Honda Raises Annual Outlook as Profit Grows for First Time in 6 Quarters on Weak Yen

Key Facts

In a significant turnaround for the Japanese automotive giant, Honda Motor reported a quarterly profit of 456.9 billion yen, marking its first profit growth in six quarters. According to reports, the results were primarily driven by the continued weakness of the yen and a robust performance in motorcycle sales. This recovery has led the company to raise its full-year profit guidance, signaling a pivot away from recent operational struggles.

The financial rebound is particularly notable as it follows a previously booked full-year loss of 423.9 billion yen, which stemmed from massive writedowns related to its electric vehicle (EV) division. Per market data, the strength in traditional segments has effectively offset rising raw material costs and global sales volume pressures. This performance underscores how currency tailwinds and diversified product lines are stabilizing the balance sheet after heavy EV-related losses.

At the close on August 5, 2026, the 7267.T ticker was priced at 1623 JPY, while HMC shares closed at 30.12 USD on August 4, 2026. Investors are now focused on the sustainability of motorcycle demand and the trajectory of the yen, while also monitoring Japan's consumer confidence index, which stood at 34.9 in late July, as a key indicator for domestic market health.