Nissan returns to profit but trims sales outlook

Nissan Motor Co. reported a return to operating profitability in the first quarter of fiscal 2026, covering the April–June period. Consolidated operating profit reached ¥77.9 billion, while net profit attributable to shareholders was ¥3.8 billion. Quarterly consolidated sales totaled about ¥2.96 trillion, reflecting improved earnings despite ongoing market challenges.

Global vehicle sales for the quarter were 701,000 units. The combination of this sales volume, a stronger mix and internal efficiency measures allowed Nissan to post a positive operating result after prior weakness. The figures mark a notable turnaround in profitability at the start of the fiscal year.

Management highlighted the contribution of its Re:Nissan restructuring program to the improved performance. The company reported roughly ¥60 billion in cost savings during the quarter linked to these initiatives. These savings supported the operating-profit level despite pressures in some regional markets.

The focus on disciplined execution and cost control has become a key element of Nissan’s strategy. By lowering structural costs, the company has been able to offset part of the impact from softer demand in some areas and maintain profitability at the start of fiscal 2026.

Alongside the stronger first-quarter earnings, Nissan revised its full-year global sales forecast for fiscal 2026. The projection for worldwide vehicle sales was reduced to 3.15 million units, down from a previous outlook of 3.30 million units. The company cited persistent weakness in China and other market headwinds as reasons for the adjustment.

The reduced forecast indicates a cautious view on demand conditions over the remainder of the fiscal year. While the first-quarter profit performance was solid, Nissan expects the external environment to remain challenging in key markets, limiting its ability to grow unit volumes as previously anticipated.

Chief Executive Ivan Espinosa pointed to difficult operating conditions in China and parts of the Middle East. He described the company as managing disruption where it exists and building momentum where opportunities arise. Recent regional disruptions were noted as affecting logistics, production and exports.

These regional factors, combined with broader market headwinds, form an important backdrop to Nissan’s updated outlook. The company’s current strategy balances continued cost reductions and operational discipline with a cautious stance on demand in sensitive markets such as China and certain Middle Eastern countries.