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Honda Q3 Earnings Top Expectations, Revenues Decline Y/Y
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Key Takeaways
Honda Q3 EPS of 76 cents beat estimates, but revenues fell to $34.7B from $36.3B a year ago.
Honda's Automobile segment revenues fell 8.8% and posted a 93.4 billion yen operating loss.
HMC sees FY26 operating profit at 550 billion yen, down 54.7%, with auto sales projected to drop 7%.
Honda (HMC - Free Report) reported earnings of 76 cents per share for the third quarter of fiscal 2026, topping the Zacks Consensus Estimate by 90.2%. The bottom line, however, fell from the year-ago quarter’s earnings of $1.31 per share. Quarterly revenues totaled $34.7 billion, which fell from the year-ago period’s figure of $36.3 billion.
Honda Motor Co., Ltd. Price, Consensus and EPS Surprise
For the three-month period, which ended on Dec. 31, 2025, revenues from the Automobile segment decreased 8.8% year over year to ¥3.43 trillion ($22.3 billion). The segment registered an operating loss of ¥93.4 billion ($606.3 million) against an operating income of ¥144.6 billion in the corresponding quarter of fiscal 2025.
Revenues from the Motorcycle segment came in at around ¥1.01 trillion ($6.58 billion), which increased 13.1% year over year. The unit’s operating profit came in at ¥178.3 billion ($1.15 billion), down 1.3% year over year.
Revenues from the Financial Services segment totaled ¥879 billion ($5.7 billion), up 3.5% year over year. The unit’s operating profit totaled ¥74.8 billion ($485 million), down 9.1% year over year.
Revenues from Power Product and Other Businesses came in at ¥97.5 billion ($632 million), down 0.6% year over year. The segment’s operating loss widened to ¥6.3 billion (40.9 million) compared with the operating loss of ¥5.4 billion incurred in the same period last year.
Financials & FY26 View
Consolidated cash and cash equivalents were ¥4.85 trillion ($31 billion) as of Dec. 31, 2025. Long-term debt was around ¥8.29 trillion ($53.1 billion) as of Dec. 31, 2025.
Honda projects fiscal 2026 consolidated sales volumes from the Motorcycle, Automobile and Power Products segments to be 14.25 million units, 2.64 million units and 3.67 million units, respectively. The forecast implies growth of 4.1% year over year in the Motorcycles unit. However, Automobile and Power Product Unit sales are likely to decline 7% and 0.8%, respectively, year over year in fiscal 2026.
For fiscal 2026, Honda forecasts revenues of ¥21.1 trillion, implying a decline of 2.7% year over year. Operating profit is envisioned at ¥550 billion, indicating a contraction of 54.7% year over year. Pretax profit is forecasted to be ¥620 billion, suggesting a drop of 55.9% year over year. The company will pay an interim and year-end dividend of ¥35 per share each in fiscal 2026.
The Zacks Consensus Estimate for MOD’s fiscal 2026 sales and earnings implies year-over-year growth of 21.2% and 18.8%, respectively. The EPS estimate for fiscal 2026 and 2027 has improved 18 cents and 72 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for STRT’s fiscal 2026 sales and earnings implies year-over-year growth of 2.1% and 16.2%, respectively. EPS estimates for fiscal 2026 and 2027 have improved 85 cents and 48 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for PHIN’s 2025 sales and earnings implies year-over-year growth of 1.1% and 33.4%, respectively. EPS estimates for 2025 and 2026 have improved 45 cents and 81 cents, respectively, in the past 60 days.
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Honda Q3 Earnings Top Expectations, Revenues Decline Y/Y
Key Takeaways
Honda (HMC - Free Report) reported earnings of 76 cents per share for the third quarter of fiscal 2026, topping the Zacks Consensus Estimate by 90.2%. The bottom line, however, fell from the year-ago quarter’s earnings of $1.31 per share. Quarterly revenues totaled $34.7 billion, which fell from the year-ago period’s figure of $36.3 billion.
Honda Motor Co., Ltd. Price, Consensus and EPS Surprise
Honda Motor Co., Ltd. price-consensus-eps-surprise-chart | Honda Motor Co., Ltd. Quote
Segmental Highlights
For the three-month period, which ended on Dec. 31, 2025, revenues from the Automobile segment decreased 8.8% year over year to ¥3.43 trillion ($22.3 billion). The segment registered an operating loss of ¥93.4 billion ($606.3 million) against an operating income of ¥144.6 billion in the corresponding quarter of fiscal 2025.
Revenues from the Motorcycle segment came in at around ¥1.01 trillion ($6.58 billion), which increased 13.1% year over year. The unit’s operating profit came in at ¥178.3 billion ($1.15 billion), down 1.3% year over year.
Revenues from the Financial Services segment totaled ¥879 billion ($5.7 billion), up 3.5% year over year. The unit’s operating profit totaled ¥74.8 billion ($485 million), down 9.1% year over year.
Revenues from Power Product and Other Businesses came in at ¥97.5 billion ($632 million), down 0.6% year over year. The segment’s operating loss widened to ¥6.3 billion (40.9 million) compared with the operating loss of ¥5.4 billion incurred in the same period last year.
Financials & FY26 View
Consolidated cash and cash equivalents were ¥4.85 trillion ($31 billion) as of Dec. 31, 2025. Long-term debt was around ¥8.29 trillion ($53.1 billion) as of Dec. 31, 2025.
Honda projects fiscal 2026 consolidated sales volumes from the Motorcycle, Automobile and Power Products segments to be 14.25 million units, 2.64 million units and 3.67 million units, respectively. The forecast implies growth of 4.1% year over year in the Motorcycles unit. However, Automobile and Power Product Unit sales are likely to decline 7% and 0.8%, respectively, year over year in fiscal 2026.
For fiscal 2026, Honda forecasts revenues of ¥21.1 trillion, implying a decline of 2.7% year over year. Operating profit is envisioned at ¥550 billion, indicating a contraction of 54.7% year over year. Pretax profit is forecasted to be ¥620 billion, suggesting a drop of 55.9% year over year. The company will pay an interim and year-end dividend of ¥35 per share each in fiscal 2026.
HMC’s Zacks Rank & Key Picks
Honda carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks in the auto space are Modine Manufacturing Company (MOD - Free Report) , Strattec Security Corporation (STRT - Free Report) and PHINIA Inc. (PHIN - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MOD’s fiscal 2026 sales and earnings implies year-over-year growth of 21.2% and 18.8%, respectively. The EPS estimate for fiscal 2026 and 2027 has improved 18 cents and 72 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for STRT’s fiscal 2026 sales and earnings implies year-over-year growth of 2.1% and 16.2%, respectively. EPS estimates for fiscal 2026 and 2027 have improved 85 cents and 48 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for PHIN’s 2025 sales and earnings implies year-over-year growth of 1.1% and 33.4%, respectively. EPS estimates for 2025 and 2026 have improved 45 cents and 81 cents, respectively, in the past 60 days.