Nissan Returns to Profit in Q1 FY2026 as Re:Nissan Cost Cuts Deliver ¥60 Billion in Savings

• Period: Three months ended June 30, 2026 (FY2026 Q1)
• Global sales: 701,000 units
• Revenue: ¥2.964 trillion, up ¥257 billion year-on-year
• Operating profit: ¥77.9 billion, an improvement of ¥157 billion versus a ¥79.1 billion loss in FY2025 Q1
• Net income: ¥3.8 billion, up ¥119.5 billion year-on-year
• Cost savings: Approximately ¥60 billion realized in Q1 through Re:Nissan
• Revised FY2026 outlook: Global sales volume guidance cut from 3.3 million to 3.15 million units, largely due to China headwinds

Nissan Motor Co., Ltd. has returned to profitability in the first quarter of its 2026 financial year, posting an operating profit of ¥77.9 billion and net income of ¥3.8 billion, both swinging back into positive territory after losses in the same period last year. The improvement comes as the company continues disciplined execution of its Re:Nissan turnaround plan, which delivered an additional ¥60 billion in savings during the quarter.

For the three months ended June 30, 2026, Nissan recorded global sales of 701,000 units and consolidated net revenue of ¥2.964 trillion, up ¥257 billion over the prior year. Consolidated operating profit came in at ¥77.9 billion, a ¥157 billion improvement on the ¥79.1 billion operating loss recorded in the same quarter last year, moving Nissan’s operating margin from -2.9% to 2.6%. The improvement was driven by progress in manufacturing and vehicle cost reductions, favourable foreign exchange, improved sales performance and disciplined cost management, with one-time gains related to FY2025 U.S. tariffs also contributing to the operating profit figure.

Ordinary profit came in at ¥49.1 billion, an improvement of ¥158.3 billion on last year’s ¥109.2 billion loss. Net income improved by ¥119.5 billion year-on-year to reach ¥3.8 billion for the quarter, up from a ¥115.8 billion loss in FY2025 Q1. These figures are calculated under the equity accounting method for the group’s China joint venture, based on average foreign exchange rates of JPY 160/USD and JPY 185/EUR for FY26 Q1.

Reflecting a more challenging business environment, particularly in China, Nissan has revised its FY2026 sales volume outlook downward from 3.3 million units to 3.15 million units. Performance across other key markets remains aligned with the company’s full-year ambitions.

The revised outlook accounts for external headwinds including rising raw material costs and geopolitical uncertainty in the Middle East, weighed against opportunities from favourable foreign exchange, one-time gains realized in the first quarter, and other mitigating factors. Supported by disciplined execution of Re:Nissan, ongoing cost reductions and actions to strengthen competitiveness across key markets, the company has reaffirmed its FY2026 financial outlook and says it remains on track to deliver its Re:Nissan commitments.

Nissan’s market performance remains broadly aligned with Re:Nissan ambitions, driven by momentum in key markets and demand for new products.

In the United States, the “Built in the U.S. for the U.S.” strategy continues to sustain momentum and strengthen competitiveness. Nissan remains the fastest-growing mainstream brand over the past 10 months and has achieved 16 consecutive months of year-over-year retail sales growth, with U.S. sales growing nearly 10 percent in the past quarter.

In Japan, Nissan is building momentum through a renewed product lineup and stronger customer demand. Customer response to the all-new Kicks and all-new Elgrand has been encouraging, with cumulative orders reaching 11,000 and 8,000 units respectively, supporting early signs of a sales recovery.

In China, Nissan is executing a strategy to rebalance and revamp the business through disciplined inventory management, accelerating NEV momentum led by the N6, N7, NX8 and Frontier Pro, and expanding into overseas markets. These actions are aimed at strengthening the foundation for renewed growth from 2027 onward.

Cost-reduction initiatives under Re:Nissan are delivering tangible results. In the first quarter, Nissan realized approximately ¥60 billion in savings, driven primarily by variable cost reductions. The improvement reflects ongoing efforts to enhance efficiency across manufacturing, purchasing, research and development, and other business functions, supported by disciplined expense management and a continued focus on operational excellence across the company.

CEO Espinosa commented on the results: “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. 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. 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.”