Japan's Big Three Automakers Report Q1 FY2027 Earnings: Toyota and Honda Beat Profit Forecasts, Nissan Returns to Profit

Japan's three major automakers—Toyota, Honda, and Nissan—recently released their financial results for the first quarter of fiscal year 2027 (ended June 2027). Toyota and Honda reported significantly higher-than-expected net profits, driven by strong demand for hybrid vehicles in the U.S. market and a weaker yen. Nissan returned to profitability with an operating profit of ¥77.9 billion, reversing a year-earlier loss, thanks to structural reforms and cost-cutting measures. During the quarter, global sales of Toyota and Lexus hybrid models rose 6.7% year-over-year to 1.238 million units, while sales of electrified vehicles increased by 12.4%, accounting for 55.3% of the company’s total global sales. Honda reported global retail sales of 249,000 hybrid vehicles, up by 24,000 units compared to the same period last year. Nissan’s sales revenue for the quarter increased by ¥257.3 billion year-over-year. Based on current performance, Toyota has raised its full-year FY2027 outlook: sales forecast from ¥51 trillion to ¥54 trillion, operating profit from ¥3 trillion to ¥3.4 trillion, and net profit from ¥3 trillion to ¥3.25 trillion. Honda also revised its full-year guidance upward, increasing its sales forecast from ¥23.15 trillion to ¥24.15 trillion, operating profit from ¥500 billion to ¥650 billion, and net profit from ¥260 billion to ¥400 billion. In the Chinese market, Toyota’s sales in the first half of 2027 declined by 17% year-over-year, while Honda’s sales during the same period dropped by 35%.