Nissan Motor Co. has returned to profitability in the first quarter of its 2026 financial year, with improved operating performance and disciplined cost-cutting helping the Japanese automaker navigate a challenging global business environment.
The company reported positive operating and net income for the three months ended June 30, 2026, as its turnaround programme, Re:Nissan, continued to deliver savings and strengthen competitiveness across major markets.
During the quarter, Nissan sold 701,000 vehicles globally, while consolidated net revenue rose to ¥2.964 trillion, representing an increase of ¥257 billion compared with the corresponding period last year.
Profitability Improves
After recording losses in the same period of the previous financial year, Nissan returned to positive territory across several key performance indicators.
Operating profit climbed to ¥77.9 billion, an improvement of ¥157 billion year-on-year, while the operating margin improved from -2.9 per cent to 2.6 per cent.
The company attributed the stronger performance to lower manufacturing and vehicle production costs, favourable foreign exchange movements, improved vehicle sales, disciplined cost management and one-off gains related to U.S. tariffs during the previous financial year.
Ordinary profit also rebounded to ¥49.1 billion, while net income reached ¥3.8 billion, representing an improvement of ¥119.5 billion from the loss recorded in the corresponding quarter of 2025.
Sales Outlook Revised
Despite the improved quarterly performance, Nissan lowered its global vehicle sales forecast for the 2026 financial year, citing persistent challenges in the Chinese market.
The automaker now expects to sell 3.15 million vehicles, down from its previous projection of 3.3 million units.
Management said the revision reflects a more difficult operating environment in China, although performance across other major markets remains broadly in line with expectations.
Nissan also pointed to rising raw material costs and continued geopolitical uncertainty in the Middle East as risks facing the business during the remainder of the financial year.
Nevertheless, the company reaffirmed its overall financial outlook for FY2026, expressing confidence that continued implementation of the Re:Nissan strategy would help offset external pressures.
TSE report basis – China JV equity basis2
| Yen in billions | FY25 Q1 | FY26 Q1 | Variance vs FY25 |
| Revenue | 2,706.9 | 2,964.2 | 257.3 |
| Operating profit | -79.1 | 77.9 | 157 |
| Operating margin | -2.9% | 2.6% | 5.5 points |
| Ordinary profit | -109.2 | 49.1 | 158.3 |
| Net income1 | -115.8 | 3.8 | 119.5 |
Turnaround Plan Delivers Savings
According to Nissan, its restructuring programme generated approximately ¥60 billion in cost savings during the first quarter alone.
The savings were driven largely by lower variable production costs and improved efficiency across manufacturing, procurement, research and development, as well as tighter expense management.
The company said the programme remains central to its efforts to improve profitability, strengthen competitiveness and position the business for long-term growth.
Growth Across Key Markets
Nissan highlighted encouraging performances in several major markets despite broader industry challenges.
In the United States, the company's "Built in the U.S. for the U.S." strategy continued to support sales growth. Nissan said it has remained the fastest-growing mainstream automotive brand over the past 10 months and has now recorded 16 consecutive months of year-on-year retail sales growth. Vehicle sales in the U.S. increased by nearly 10 per cent during the quarter.
In Japan, customer demand strengthened following the launch of the all-new Kicks and Elgrand models, with cumulative orders reaching 11,000 and 8,000 units respectively.
Meanwhile, in China, Nissan said it is repositioning its business through tighter inventory management, expanding its new energy vehicle portfolio—including the N6, N7, NX8 and Frontier Pro—and increasing its focus on overseas markets as part of plans to restore growth from 2027.
CEO Confident Despite Challenges
Commenting on the company's performance, Nissan President and Chief Executive Officer Ivan Espinosa acknowledged that the business continues to face difficult market conditions but insisted the turnaround strategy remains on course.
"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."
He added that the company remains focused on adapting to changing market conditions while improving efficiency.
"Across our key markets, we are adapting our strategies to changing conditions, strengthening product competitiveness, improving our cost structure and becoming more agile as a company."
Espinosa said Nissan's long-term priorities remain unchanged.
"Our focus is unchanged: creating value for customers, improving profitability and free cash flow, and building a stronger, more resilient Nissan for the long term."
Although the company expects external challenges to persist, management believes ongoing cost reductions, operational improvements and favourable market conditions in several regions will support the successful execution of its recovery strategy throughout the 2026 financial year.