Honda pulled its full-year guidance higher on August 5, 2026, after operating profit more than doubled in the three months to June. The automaker now expects 650 billion yen in operating profit for fiscal 2027, up sharply from its May forecast of 500 billion yen. Sales revenue was revised to 24.15 trillion yen, and net profit attributable to shareholders climbed to 400 billion yen from an earlier 260 billion yen.
The jump came on the back of a strong quarter. In the three months ended June 30, Honda reported operating profit of 530.7 billion yen, a 117.4 percent jump from the same period a year earlier. Sales hit 6.06 trillion yen. Profit for the quarter reached 450.9 billion yen, more than double the prior-year quarter's 196.7 billion yen.
Currency is doing the heavy lifting
Here's the catch. Honda attributes most of the upbeat revision to foreign-exchange moves. The company lifted its assumed USD/JPY rate to 155 from 145, betting the yen stays weak through the fiscal year. A softer yen inflates the value of money earned overseas when converted back home, which matters enormously for an exporter that pulls in revenues from America, Europe, and Asia. If the currency swings the other way, those gains evaporate fast.
The yen was weaker than Honda had modeled in the first quarter, creating tailwinds the automaker now expects to persist. The real test comes in the months ahead. Currency traders watch USD/JPY constantly, and any sharp rebound would force Honda to walk back these numbers. For now, the market gave the results a thumbs up, with reports of positive investor sentiment following the announcement.
This material is informational and does not constitute financial advice or investment guidance.
