Nissan returns to profit in Q1, cuts FY2026 sales outlook to 3.15M units
Nissan swung to a ¥77.9 billion operating profit in Q1 and reaffirmed its full-year outlook while lowering its sales target as China remains challenging.
- 701,000 units
- ¥77.9 billion
- ¥3.8 billion
- 3.15 million units
What Happened
Nissan posted first-quarter fiscal 2026 results for the three months ended June 30, 2026. Global sales reached 701,000 units and consolidated net revenue rose ¥257 billion year over year to ¥2.964 trillion. Operating profit returned to positive territory at ¥77.9 billion, an improvement of ¥157 billion, and net income came in at ¥3.8 billion. The company credited Re:Nissan cost reductions, manufacturing and vehicle cost improvements, favorable foreign exchange, and one-time gains related to FY2025 U.S. tariffs. Operating margin improved to 2.6% from -2.9% a year earlier.
- ¥2,706.9B → ¥2,964.2B
- -¥79.1B → ¥77.9B
- -¥115.8B → ¥3.8B
¥49.1 billionJPY
Up from -¥109.2 billion in Q1 FY25.
- U.S.: Fastest-growing mainstream brand over the past 10 months, with 16 consecutive months of year-over-year retail sales growth; Q1 U.S. sales grew nearly 10%.
- Japan: Cumulative orders reached 11,000 for the all-new Kicks and 8,000 for the all-new Elgrand.
- China: Rebalancing via disciplined inventory management, NEV momentum led by N6, N7, NX8 and Frontier Pro, and overseas expansion; foundation for renewed growth from 2027 onward.
- Re:Nissan cost savings: Approximately ¥60 billion realized in Q1, driven mainly by variable cost reductions.
Reflecting a more challenging business environment, particularly in China, Nissan revised its FY2026 sales volume outlook from 3.3 million to 3.15 million units. The company reaffirmed its full-year financial outlook, citing favorable foreign exchange, one-time gains from Q1, disciplined execution of Re:Nissan, ongoing cost reductions, and actions to strengthen competitiveness. External headwinds include rising raw material costs and geopolitical uncertainty in the Middle East. Calculations are based on average FX rates of JPY 160/USD and JPY 185/EUR for FY26 Q1.
“The environment remains challenging, particularly in China and the Middle East, but our direction is clear. We are managing disruption where it exists, building momentum where we see opportunity, and executing Re:Nissan with discipline and urgency.”
Previously from Nissan
Prior MotorClaw coverage reported that Nissan's global production fell 14.5% in June 2026, to 214,040 vehicles, while global sales dropped 8.3% to 240,345 units. Those monthly declines set the context for today's quarterly results, which still showed an operating profit recovery.
Background drawn from MotorClaw's earlier coverage of Nissan's official releases.
Why this matters
The results show Nissan's Re:Nissan turnaround is delivering tangible savings and recovery, with operating profit and net income back in positive territory after a loss-making year earlier. Still, the company faces a tougher China market and external headwinds like raw material costs and Middle East uncertainty, so it trimmed its full-year sales forecast. Nissan is banking on new products and disciplined cost management to strengthen competitiveness acros…
Terms in This Story
- Re:Nissan
- Nissan's multi-year turnaround plan focused on improving profitability, competitiveness, and recovery.
- NEV
- New Energy Vehicle, a category that includes battery-electric, plug-in hybrid, and other alternative-propulsion vehicles.
- Operating profit
- Profit from core business operations before interest and taxes, a measure of day-to-day profitability.
Summarised from the linked release; details can be imperfect — always verify against the original source.